Last Updated on January 9, 2024 by Umer Malik
Car insurance is a crucial aspect of owning a car. It protects against financial loss in an accident, theft, or other unexpected incidents that can damage or destroy your vehicle. However, deciding on the right amount of car insurance coverage can be a daunting task. Many car owners wonder how much coverage they need to be fully protected.
In this blog post, we will break down the different types of online insurancecoverage and help you understand how much coverage you’ll actually need. We’ll look at the minimum requirements for car insurance coverage and additional coverage options that can provide added protection and peace of mind. We’ll also discuss factors that can affect your car insurance rates and help you find ways to save money on your car insurance premiums.
Understanding car insurance coverage is essential whether you’re a new driver or an experienced car owner. So, let’s get started and find out how much car insurance coverage you’ll need!
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Types of Car Insurance Coverages Available
In India, car insurance policies are regulated by the Insurance Regulatory and Development Authority of India (IRDAI). Different types of car insurance coverage are available in India, each with its own benefits and features. Now, let’s find out various car insurance coverages available in India.
- Third-Party Liability Coverage
Third-party liability coverage is the minimum car insurance coverage required by law in India. This type of coverage protects the policyholder against any legal liability arising from accidental damage to third-party property, bodily injury, or death of third-party individuals. It covers the policyholder’s legal liability towards third-party property damage or injury caused due to the policyholder’s vehicle. This policy does not cover any damage to the policyholder’s car. Third-party liability coverage is mandatory and is included in all car insurance policies.
- Comprehensive Coverage
Comprehensive coverage is the most extensive car insurance coverage available in India. It provides complete protection to the policyholder against any loss or damage to their car, third-party property, or third-party individuals. It covers damages caused due to natural disasters such as earthquakes, floods, or landslides, as well as man-made disasters such as theft, vandalism, or accidents. Additionally, it covers personal accident coverage for the policyholder and any co-passengers in the car.
- Personal Accident Coverage
Personal accident coverage is an optional add-on cover that can be included with your car insurance policy. It provides coverage for any bodily injury or death of the policyholder due to an accident. It also covers any co-passengers in the car during the accident. Personal accident coverage is available for both the policyholder and co-passengers in the car.
- Zero Depreciation Coverage
Zero Depreciation coverage is an optional add-on cover that can be included with your comprehensive car insurance policy. It provides complete coverage for any repairs or replacements required in case of any damage to the car without considering the depreciation value of the car’s parts. This type of coverage is beneficial for new or expensive cars, as it helps in reducing repair costs and ensures complete protection.
- Roadside Assistance Coverage
Roadside assistance coverage is an optional add-on cover that can be included with your car insurance policy. It assists in emergencies, such as flat tyres, dead batteries, or engine breakdowns. This type of coverage is beneficial for long-distance travel or in case of any unexpected breakdowns.
- Engine Protection Coverage
Engine protection coverage is an optional add-on cover that can be included with your comprehensive car insurance policy. It provides coverage for any damage caused to the car’s engine due to water ingression, oil leakage, or any other mechanical or electrical breakdown. This type of coverage is beneficial for cars frequently used in areas with heavy rainfall or floods.
So How Much Coverage Do You Need?
The car insurance coverage you need in India depends on various factors, such as the type of car you own, your driving habits, and the level of risk you are willing to take. While third-party liability coverage is mandatory, it may not cover all your insurance needs. It is always advisable to opt for comprehensive coverage including personal accident coverage and add-on covers such as zero depreciation, engine protection, and roadside assistance coverage. These add-ons provide additional protection and can help you save money on repairs and replacements.
The amount of coverage you need also depends on your budget. While it is always advisable to opt for higher coverage, it may only sometimes be feasible for some. It is essential to strike a balance between the coverage you need and the premium you can afford to pay. You can also consider increasing your deductible to reduce your premium amount when you buy insurance online for your car.
While it is always advisable to opt for comprehensive coverage and add-on covers, it is essential to balance the coverage you need and the premium you can afford. It is always advisable to compare different car insurance policies and choose the one that best suits your requirements and budget. This blog will come in handy for you to buy policy for your car in the future.