Motor Insurance: It is very important to take a right insurance policy to protect your vehicle from any damage. Depending on the category of the vehicle, different insurance policies like private car insurance, two-wheeler insurance, commercial vehicle insurance are available. There are many types of motor insurance coverage in India, which provide financial security cover to the vehicle owner. Third party insurance is mandatory in motor insurance. That is, it is necessary for every vehicle owner to take it. For this, there is also the option of own damage and comprehensive policy.

Motor insurance policy is a safety cover that protects you and your vehicle in case of any misfortune on the road. Before choosing the right insurance policy as per your requirement, compare the policies online and also include the necessary riders.

How many types of motor insurance coverage

Third Party Motor Insurance Policy

this motor insurance policy is necessary by law. This insurance policy commonly known as third party insurance. Designed to favor the owner, it protects against legal liabilities arising out of third party vehicle damage, loss of personal belongings and physical damage caused to your car. Driving without this policy is illegal. There is a provision for penalty in this. This is a basic insurance policy, hence, its premium is quite low. For example, many policies for cars with engines less than 1000 cc are available at a premium of Rs 2094 and the premium subsequently increases depending on the engine size.

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Own Damage Automobile Insurance Policy

own damage car insurance is very beneficial. It is because Own Damage Automobile Insurance Policy protects you from damage caused to your vehicle or motor due to accidents like fire, theft, flood, earthquake etc. Additionally, it reduces financial pressure as it covers the cost of repairing or replacing car parts damaged in an accident.

Another favorable feature of this policy is that it protects the insured vehicle from damage caused by accidents like riots, terrorist attacks. However, a higher premium has to be paid for this facility. It can be purchased only with third-party motor insurance. The car owner cannot take this as a standalone policy. If the customer already has an existing third party policy, he will have to purchase a standalone own damage policy. While purchasing a standalone own damage insurance policy, it is necessary to have a valid third party policy.

Comprehensive Car Insurance Policy

Experts say, comprehensive car insurance policy provides end-to-end coverage. Because it covers both your own losses and third party liabilities. Additionally, the policyholder can further enhance the policy by adding suitable riders. Some of these have zero depreciation. This saves a lot. Additionally, there are add-on covers like an Engine Protector Cover, Consumables Cover, and Passenger Liability Cover, which protect you and all other passengers in the motorcar.