- By Divanshi Sharma
- Wed, 29 May 2024 07:04 PM (IST)
- Source:JND
Car Insurance Online: Road accidents can occur due to others' negligence or your own mistake. This can result in property loss or severe injuries. Car insurance protects drivers, owners, passengers and pedestrians from financial and legal repercussions. Different policies offer various levels of coverage. Here are the five most popular car insurance types in India, each catering to specific protection needs.
Third-Party Liability Insurance
Third-party liability insurance is mandatory for all vehicles on Indian roads. This affordable insurance covers:
Damage to another vehicle
Damage to another person's property
Hospital and treatment costs for third parties
Deaths of third parties
However, it doesn’t cover any damage to the insured’s own vehicle or loss due to theft or natural calamities.
Own Damage Insurance
This type of insurance covers the cost of repairs to your own vehicle if it's damaged in an accident. It is based on the vehicle’s age and its insured declared value (IDV), which is its market value. If the repair costs exceed the car’s current value, the insurer will pay the market value. This insurance is crucial if you live in an area prone to accidents or if there is a claim on your vehicle.
Personal Accident Insurance
Personal accident insurance covers medical expenses for the vehicle owner in case of an accident. It also protects passengers and drivers, covering medical bills regardless of who caused the accident. In the unfortunate event of a death, the insurer will provide a lump sum to the family of the deceased.
Uninsured Motorist Protection
This insurance protects you if you’re involved in an accident with an uninsured driver. It covers both the cost of repairs to your vehicle and medical expenses. This can be particularly useful if the other driver’s insurance is insufficient to cover all the damages.
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Comprehensive Car Insurance
Comprehensive car insurance offers extensive coverage, including both third-party and own vehicle damage. It is usually more expensive, however, provides unmatched protection, including coverage for theft, natural disasters, man-made calamities, fire and terrorist activities. However, it does not cover - damages from drunk driving or driving under the influence of alcohol, damages from driving without a valid licence, electrical and mechanical breakdowns, regular wear and tear, damages from illegal racing or rash driving and damages incurred outside the country.