Types of Car insurance :

Third Party Car Insurance

Third Party Car Insurance covers you against any legal liability resulting from accident of your vehicle. It covers damage to property, accidental death or an injury to a third party. A Third Party Liability cover is legally mandatory in India under the Motor Vehicles Act. A typical Comprehensive Package Policy comprises of 3 things, firstly, damage to your vehicle, Secondly, a third party legal liability cover and lastly; A personal accident cover to driver (owner) of the vehicle for up to Rs.2 lakhs for a premiumof Rs.100.

Comprehensive Insurance

A comprehensive package car insurance policy is more extensive and preferred by most people. The coverage includes damage or theft of vehicle, third party legal liability and personal accident cover for owner or driver. Many new car insurance plans also provide inbuilt roadside assistance cover with comprehensive car insurance cover. The policy coverage can also be extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses etc. For every year in which no claim is made, a bonus is awarded by the insurance company. It is a discount made on own damage premium amount. The discount is cumulative and increases every year. It usually ranges from 10% to 50% and can certainly save substantial amount of money.