Understanding the types of car insurance coverage is essential for every car owner in India. Car insurance shields you from financial losses due to accidents, theft and other unexpected incidents.
There are various types of car insurance to choose from, each providing different levels of protection. Knowing the different types of car coverage helps you make an informed decision.
Let us discuss the five main types of car insurance available, giving you the insights needed to select the best coverage for your car.
Top 5 Types of Car Insurance
Third-Party Car Insurance Liability Coverage
As the name suggests, third-party insurance only covers third-party liabilities. It does not cover damage to your vehicle or theft.
Third-Party car insurance liability coverage also offers protection against injury or death caused to a third person by your vehicle, along with damage caused to others’ property. The annual premium is decided by the IRDAI.
As per the Motor Vehicles Act of 1988, buying
third-party car insurance is mandatory. Without it, you will be driving your car unlawfully on the road, which would result in a penalty and fine.
Own Damage (OD) Car Insurance
Own Damage car insurance policy is extremely crucial among the different types of car coverage. It provides financial coverage for damages to your car resulting from accidents and theft. For example, when your car gets damaged in an accident, this policy covers the costs associated with repairing or replacing parts of your vehicle.
This car coverage type also covers damage caused by natural disasters such as floods, earthquakes and fires, as well as damage from man-made calamities, including riots, strikes and terrorist attacks.
Also Read:
Does Car Insurance Cover Natural Disasters?
Comprehensive or Full Car Coverage Insurance
Comprehensive car insurance provides extensive protection by combining Third-Party Liability and Own Damage coverage under one policy. It offers thorough, end-to-end protection for your vehicle.
A key feature of this full car coverage insurance is that it covers theft and damage from natural disasters like floods, earthquakes, landslides, fires and cyclones. You can also amplify your protection with add-on covers such as Return to Invoice, Zero Depreciation and much more.
Personal Accident (PA) Cover
This is a mandatory cover that must be bought with any type of car insurance policy. If you own multiple vehicles, you do not need to buy this cover more than once. A PA cover provides reimbursement of injury or death of the owner-driver due to an accident up to ₹15 lakhs.
In other words, it covers the owner-driver's medical expenses resulting from accidents. It also offers financial protection in situations like disabilities, bodily injuries or loss of a body part. In case of death, the full amount is paid to the policyholder’s family or beneficiary, offering them financial security during difficult times.
At Reliance General Insurance, our car insurance plans come bundled with a personal accident cover, so you don’t have to buy one separately.
Zero Depreciation (NIL Depreciation) Insurance
Zero Depreciation, also called NIL Depreciation insurance, covers the cost of depreciation during claims. When your car is damaged, the claim amount accounts for the depreciation of car parts.
This type of car insurance is a comprehensive car plan that comes bundled with a Zero Depreciation add-on cover. With a NIL Depreciation cover, you receive the entire value of your car's components during a claim without deductions for depreciation.
At Reliance General Insurance, we offer a Nil Depreciation add-on cover under our comprehensive car insurance plans for cars no older than 3 years.
Different Types of Car Coverage Available at Reliance General Insurance for e
Reliance General Insurance offers several types of car insurance policies at competitive premiums starting at just ₹238* per month. Our affordable rates ensure top-notch protection without compromising coverage. Also, you can receive up to 80%* discount on premiums when you purchase car insurance online.
Buy your
car insurance policy from Reliance General Insurance to safeguard your car today!
Conclusion
Understanding the types of car insurance coverage is crucial for every car owner in India. Each car coverage type offers different levels of coverage, helping you make an informed decision.
From Third-Party Liability and Own Damage to Comprehensive Insurance, each type addresses specific needs and scenarios. By selecting the right coverage, you ensure the safety and security of both your vehicle and your financial well-being.
Frequently Asked Questions (FAQs)
What are some common add-ons for car insurance in India?
Common car insurance add-ons include Zero Depreciation Cover, Engine Protection, Return to Invoice, Roadside Assistance and Consumables Cover.
Can I switch my car insurance provider?
Yes, you can switch your car insurance provider at the time of renewal. It's advisable to compare policies and choose the best coverage and benefits.
What is the claim settlement ratio?
The claim settlement ratio is a percentage value that indicates the number of claims the insurer settled out of the total number of claims received. A higher ratio tends to indicate a higher likelihood of your claims being settled by the insurer.
Can I get car insurance for an older vehicle?
Yes, you can get car insurance for older vehicles. However, the premium and coverage options might vary based on the car's age, condition and market value.