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car insurance India

car insurance India.

Insurance companies in India offer two types of policies - comprehensive and third-party. While the third-party cover is cheaper and covers only third-party damages, the comprehensive cover offers a wider coverage and is hence, slightly expensive. 

There are several key factors that come into play when you have to choose a car insurance scheme.

In India, insurers sell both comprehensive covers and standalone third-party covers. While comprehensive motor policies cover both personal damages and third-party liabilities, standalone third-party car insurance cannot be used for own personal damages. 

° What Is Comprehensive Car Insurance Coverage? 

Comprehensive car insurance often includes coverage for: theft, fire, natural disasters like a hurricane or a tornado, vandalism, falling objects, Damage done to your car by animals, civil disturbance. 

° Essential Components Of Comprehensive Car Insurance Policy: 

With a comprehensive insurance plan, you can rest assured that the potential losses due to accidents are easily taken care of. It provides protection against damages from accidents, even if you are at fault. 

° Reasons to Upgrade to Comprehensive Car Insurance: 

Theft Vandalism Glass damage (such as a broken windshield) Damage sustained from hitting an animal or bird Damage from falling objects or missiles Fire incidents Floodwaters Damage to a third party. For high valued cars, this type of insurance is desirable as additional protection. 

° Comprehensive Car Insurance Exclusions:

Ageing, wear and tear, etc. of the vehicle Depreciation Electrical or Mechanical breakdown Damage to tyres and tubes. Damage caused due to drunken driving or driving under the influence of drugs.

° Benefits Of Buying Third-party Car Insurance:

The Motor Vehicle Act stipulates that a third-party claim can be made under the categories of "no-fault liability claims" where the claimant is under no obligation to allege and prove. 

° Third-party Car Insurance Exclusions: 

Third-party only car insurance policy does not cover the cost of damages to a vehicle or the belongings in the vehicle in case of an accident. 

° Difference Between Third-party & Comprehensive Cover: 

One major difference between third-party insurance and comprehensive insurance is the range of protection offered to you and your vehicle. While a comprehensive plan provides multiple protection covers for you and your vehicle, a third-party cover is limited to offering protection against the claims of a third party. The strengths and weaknesses of these two types of car insurance depend on several underlying factors. It is necessary to better understand these variables in order to compare, analyze and decide upon the right car insurance scheme. 

Value of the car:
If the value of your car is low, it is better to take third-party motor insurance since repairs to damages caused can be managed cost-efficiently and easily. It is cheaper to pay for repairs when compared to paying the high premiums associated with comprehensive cover. However, if the car is brand new and expensive, comprehensive cover is the better option. 

Third-party insurance covers damages to the third-party vehicle, injuries caused to other people in an accident, as well as damage to third-party property. Some companies charge extra for third-party property coverage. This coverage has become a priority these days since the cost of repairing damages to the car is high. But it does not provide you with any coverage against damages to your own vehicle.

A comprehensive cover is more expensive than a third-party cover since it provides coverage for a wide variety of damages/injury/loss.

° What Insurance Cover Is Right For You? 

If what you are looking for is coverage for yourself and your vehicle, a comprehensive car insurance policy is what you need. A comprehensive coverage policy is expensive as compared to just third-party insurance cover. A standalone third-party cover could have opted for old vehicles that are no longer in prime condition. It is better to be safe than sorry. Accidents happen unexpectedly, and they can heavily weigh on your finances. 

To attain peace of mind when it comes to getting the right coverage, take third-party or comprehensive insurance that meets all your requirements.

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