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What are various types of Car Insurance Plans in India?

What are various types of Car Insurance Plans in India

If you are purchasing a car insurance for the first time, you would have seen various types of insurance plans offered by car insurance companies. You might be thinking of getting a good car insurance policy based on the features provided by car insurance companies. While you consider additional features or increase coverage value, car insurance premium increases. One should know the various Types of Car Insurance Plans offered by insurance companies so that they can assess what is suitable to them and opt the ideal car insurance plan.

What is Car Insurance Plan?


The car insurance plan provides protection to car owner against loss or damage done to the vehicle as well as to the third parties.

There is basic car insurance called third party insurance, which needs to be mandatory purchased as per Motor Vehicles Act 1988. It is illegal to drive in India without valid car insurance plan.

Types of Car Insurance Plans in India


While car insurance policies are basically categorized into two 1) Third party liabilities coverage 2) Complete car coverage, now, insurance companies are offering complete car coverage policies with several add-ons / benefits.

Here are the different types of car insurance plans offered by insurance companies in India.

1) Third Party liability coverage

This is a basic form of car insurance policy. It is mandated by law in India. It covers the following:

  • Covers damages to a third party vehicle
  • Covers damages to third party property
  • Personal accident coverage
  • Injuries or death of the third party / parties

2) Comprehensive coverage

This type of car insurance plan offers comprehensive coverage. It covers the following:

  • Covers damages to a third party vehicle
  • Covers damages to third party property
  • Personal accident coverage
  • Injuries or death of the third party / parties.
  • The damages / Loss to own car due to an accident
  • Damages / Loss to own car in case of fire
  • Damages / Loss to own car in case of natural calamity
  • Theft of the car
  • IDV customization
  • Protection with Add-ons

3) Collision Coverage

This is a simple coverage of car insurance in case of an accident. This would cover the repair expense of the vehicle only in case of collision and not in case of any other circumstances.

4) Personal Injury coverage

This type of car insurance policy covers the driver and the passengers travelling in the vehicle in case of an accident. Such coverage includes hospitalization expenses and medical bills without considering whose fault it was where the accident occurred.

5) Uninsured motorist protection

This type of car insurance provides cover where another car has hit your car and damaged, however the at-fault driver does not have car insurance to cover your repair damages. If you do not have such coverage, then you have to pay such repair / damage expenses from your pocket.

Which is the best car insurance to opt?

One should have comprehensive coverage of car insurance policy which covers the majority of the benefits indicated above. There are several Add-ons also being added now by insurance companies like:

  • Zero Depreciation cover
  • Engine Protection cover
  • Roadside Assistance
  • Consumable cover
  • Return to invoice cover
  • Passenger cover
  • Tyre protects cover, etc.

Understand various types of car insurance policies in India would help you to take appropriate car insurance plans as well utilize them appropriately when required.

Suresh KP

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