With recent price hike of fuel, owning a car has become more expensive than ever before. Since the Government has made it compulsory to buy car insurance if you own a car, people look for cheaper options so that it adds to minimal cost to their monthly expenses.
Before selecting which car insurance Policy you should buy, it is crucial to understand the types of car insurance options available to you.
1. Liability Cover Policy: - It is an affordable option that has smaller premiums and bare minimal features. It provides only accidental benefits for damage of property or injury to a person that may be caused by you. It can be combined with the following:
•Third party liability cover: It covers any losses or injury, damages or death of a person caused by you while driving your car. In this, any damage to your car will not be covered rather all sorts of third party injury and damages which are caused by you as you are involved in the accident.
•Liability only: It provides Coverage to your car in case of fire, theft or both. This can be coupled with personal Accident cover to gain the benefits in case of personal injury of driver or the owner.
One can buy car insurance of this type in case the vehicle is second hand or an old one. It provides basic coverage which will help you cope with the financial loss incurred because of any accident.
2.Comprehensive Package Policy:- This type of car insurance policy provides a host of benefits to the insured. These include:
•Damages caused due to accidents
•Third party cover for bodily injury, damages and/ or death
•Cover against fire or explosion
•Coverage for theft
•Cashless Claim settlement
To be precise, this is a package insurance that provide complete coverage to your car for any repairs required or damages caused. One can buy car insurance of this type in case of new and expensive cars which cost heavy on repairs.
Buying car insurance is highly subjective matter. It depends on you and your car requirements. From the above two types of car insurances, it can be clearly stated that liability cover policy helps to cover damages caused by you to other party whereas comprehensive cover provide financial support to you in case of an accident. Comprehensive cover is expensive than liability cover but provides additional benefits which compensates it all. However, liability cover policy provides you coverage when you are at fault. On a whole, there isn’t any perfect one. Both of them have there own benefit and utilities. One can choose the option and buy car insurance that suits their requirement.
Different general insurance companies in India provide car insurance products. Although most of these products are good, it is still advised to search for a cheaper deal. Online car insurance can also be purchased in case you have acquired all sort of necessary information and details about the product. This can help you buy car insurance at cheaper rates. However, it is always advised to go for reputed brands and easy settlement options.