covers your car against risks like theft, accident, explosion etc.
Vehicle insurance is mandatory in India. It is illegal to drive without auto insurance. The choice of taking liability only Coverage or the comprehensive coverage lies with the customer. It is important to know what they mean and what they include so as to make the choice.
Liability cover is the mandatory aspect of motor insurance. As per the law, it is the minimum insurance one need to have to be able to take the vehicle on road in India. This covers the third party (While the first party is insured, second the insurer) for:
If in case of an Accident one is liable to pay the third person for injury death or property damage, insurance company takes care of it. Liability only Policy also covers the owner driver of the vehicle for injury and death.
This type of insurance is the bare minimum one needs to have but is ideal if the cost of the vehicle has reduced substantially due to accident or years of use.
Comprehensive package policy covers the own damage part of the vehicle along with the liability only aspect. Comprehensive car insurance will cover:
Comprehensive cover includes personal accidental benefit for the owner of the car. Accessories installed in the vehicle after the purchase can also be covered under the policy on payment of extra premium. Insurance companies come up with attractive add on covers to compliment the basic comprehensive cover like:
The purpose of taking comprehensive car insurance is to offset the cost of repair incurred on one’s own vehicle in case of an accident. Taking comprehensive car insurance makes even more sense if the vehicle is new, expensive, and has been accessorised. In such cases, damage repairs cost a lot. If one has this cover all one has to pay is the Deductible and the rest is covered by the insurance company up to the sum assured. Besides Comprehensive insurance offers facilities like cashless Claim settlement and eases out the process.
Liability cover while cheap covers for the damages to other person or property and not to your own vehicle. Comprehensive car insurance is expensive on face of it but can protect you from major financial difficulty if claim situation arises.