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If you have ever tried reading a car insurance policy document, you would agree that it cannot be comprehended without a dictionary in your hands. Phrases used are twisted in such a manner that ordinary person is completely befuddled with respect to the meaning of it. However, people who are in the know will tell you that there are only a few things that we have to know that are useful and critical. This will save us loads of time breaking our heads to get the meaning out of each sentence. Car insurance in India is of majorly of 2 types. Comprehensive and liability car insurance. Comprehensive car insurance- as the name suggests, it provides all-round protection and coverage to you and your car in case of an accident, fire, flood or a tree trunk falling on our car. This type of policy will provide compensation and relief in a monetary form in the event any of the insured situations occurs. Not only has that it all covered all the liability that may arise out of an accident involving your car. Damage to property and injury to third person are also covered by this car insurance policy. Needless to say, that this type of policy has the highest premium given its broad umbrella of coverage. It is the most costly of car insurance in its class. One must make a careful choice between comprehensive car insurance provided by various insurance companies in India as they would charge big amount in the form of premiums but the coverage may differ from policy to policy. One should try to get the best deal out of it given that he is willing to pay the huge premium. Liability insurance- this type of car insurance is useful for those who cannot afford big premiums and usually is bought by those who own a second hand vehicle or someone who has an old car. The coverage of liability insurance policy is limited to the damage of the property that may occur due to an accident involving the policy holder or to injury to a person. It will not cover the damage that may occur to your car or injury that you may suffer. This type of insurance policy is cheap monetary wise. Insignificant amount of money is to be paid as premiums to get this coverage. Many people opt for this insurance over comprehensive due to monetary constraints. Also the fact that the government makes it mandatory to have a car insurance to vehicle owners, most people are left with no real option than to buy one of these policies. Trends have shown time and again that vehicle owners opt for comprehensive car insurance during the initial years of their vehicles and subsequently shift to liability car insurance as time passes and their vehicle’s value depreciate. Both the insurance policies are made for people of all types and classes, so that they can be on the right side of the law. Pranav Sharma is an insurance agent based in Mumbai; Pranav assists individuals and corporates in purchasing the right car insurance policy & often shares his insights about the general insurance industry on internet.
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Car Insurance, motor insurance, vehicle insurance, general insurance,
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