Types of Car Insurance Policies in India

Let’s be real—choosing car insurance can be a bit of a headache, right? With so many options like comprehensive car insurance, third-party car insurance, and even commercial vehicle insurance, it’s hard to know what fits your needs. Whether you’re searching for car insurance prices online or looking for the best car insurance companies near you, it can feel like a never-ending search.

But don’t worry, you’re not alone! In this guide, we will walk you through the different types of car insurance that exist in India, from auto insurance to vehicle insurance, and we will help you make sense of it all. So, whether you are new to insurance or just looking to compare options, we’ve got you covered. Let’s get started!

Benefits of Car Insurance 

- Covers Unexpected Costs: Car insurance genuinely saves you from hefty car repair bills and legal hassles if something wrong happens.

- Provides Peace of Mind: Knowing that you are covered for unforeseen expenses feels like you have a safety net with car insurance that offers true peace of mind.

- Protects Your Wallet: Vehicle insurance protects your finances from unexpected expenses, making it a smart investment.

- Helps with Accidents: If you’re involved in a car crash, car insurance can cover medical expenses and damage to other vehicles, easing a tough situation.

1. Comprehensive Car Insurance – 

- All-In-One Coverage: It takes care of both your car and any damage that you might cause to others on the road.

- Extra Protection: Covers everything from accidents to natural disasters.

- Full Repair Costs: Covers the full cost of repairs without factoring in depreciation.

What Comprehensive Car Insurance Doesn’t Cover?

- Driving Under Influence: No coverage if you’re caught drunk or high.

- No License: Driving without a valid license? You’re not covered.

- Mechanical Issues: Wear and tear or breakdowns aren’t included.

- Illegal Driving: Racing or speeding won’t be covered.

2. Third-Party Car Insurance

- Legal Coverage: Protects you from liabilities if you damage someone else’s property or vehicle.

- Budget-Friendly: Typically has lower premiums compared to other policies.

- Affordable Coverage: It’s one of the most budget-friendly options, providing basic protection due to its limited scope.

What Third-Party Liability Insurance Covers:

- Property Damage: Covers costs if you damage someone else’s property.

- Medical Costs: Takes care of hospitalization and treatment for injuries to others.

- Damage to Other Vehicles: Pays for repairs to someone else’s car.

- Liability for Deaths: Handles costs related to the death of third parties.

3. Own Damage Insurance –

- Repair Costs Covered: Reimburses you for repairs to your damaged vehicle. 

- Based on Market Value: Premiums are calculated based on your car’s age and market value (IDV). 

- Compensation for Total Loss: Pays the current market value if repair costs exceed the car’s value.

What Own Damage Insurance Cover Doesn’t Cover:

- Non-Collision Damages: Does not cover damages from natural disasters or theft. 

- Wear and Tear: Excludes repairs for regular wear and tear or mechanical failures.

- Accidents Outside Policy Scope: Won’t cover damages if the accident occurs under conditions not specified in the policy.

4. Commercial Vehicle Insurance 

- Business Use Protection: Covers vehicles used for business tasks like transporting goods or making deliveries. 

- Legal Liability: Helps with costs if your commercial vehicle causes damage or injury to others. 

- Damage Repair: Pays for repairs if your business vehicle is damaged in an accident.

What Commercial Vehicle Insurance Doesn’t Cover:

- Personal Use: If you use the vehicle for personal errands, your car will not be covered. 

- Unauthorized Drivers: No coverage if someone not listed on the policy drives the vehicle. 

- Illegal Activities: Won’t cover damages if the vehicle is used for illegal activities or anything outside the policy’s terms.

5. Zero Depreciation Insurance –

- Full Repair Costs: Pays for repairs without cutting costs for depreciation, so you get the full amount needed.

- New Parts: Guarantees that you get new parts, not used ones, for any repairs.

- Better Payout: Ensures you’re compensated based on the current value of your car, not its depreciated value.

What Zero Depreciation Insurance Doesn’t Cover:

- Wear and Tear: Doesn’t cover issues from everyday wear and tear. 

- Third-Party Damage: You’re on your own for damage to other people’s cars or property. 

- Theft or Loss: Doesn’t help if your car is stolen or damaged by natural disasters.

In conclusion, knowing the different types of car insurance helps you pick the right one for your needs. Whether you need full coverage, third-party protection, or zero depreciation insurance, choosing the right policy is important for both your car and your budget!

At MyRaasta, we’re here to make this process easier for you. We offer expert advice on insurance options and provide excellent car services. With MyRaasta, you can drive with peace of mind, knowing that we’ve got your back.