Type of Coverage that Impacts Your Car Insurance Quotes

The car insurance quotes you get will largely depend on the type of cover you choose. You can buy a car insurance plan online in a matter of a few minutes.

However, unless you know which cover is best suited for you, you won't be able to make the most of your car insurance plan. Indian Motor’s Act, 1988 has mandated to buy third-party car insurance for all the cars plying on the Indian roads. Comprehensive car insurance however is a matter of choice.

Third party cover

Let us start with the third party cover. When looking for car insurance quotes, you will find that the premium of a third party cover is significantly lower that the comprehensive cover. This is because the third party plans offer a basic coverage – you will only get compensation for the damages or injuries caused to a third party in an accident.

The plan will take care of the financial losses you may suffer due to a mishap involving your vehicle. There will however be no payout for the damages or injuries you or your vehicle sustains in the mishap.

Comprehensive cover

As the name suggests, a comprehensive cover offers a broader range of cover.You get all the benefits of a third party cover. In addition to that, you also get compensation for the damages and injuries sustained to yourself and your vehicle. A comprehensive car insurance quote is always higher, but the extra money you pay is completely worth it.

Third part cover: What is covered?

Let us take a quick look at what is included in a third party motor insurance cover:
  1. It covers all legal costs that stem out of an accident.
  2. It compensates for bodily damages or death of a third party involved in an accident.
  3. It compensates for damages to the vehicle or property of a third party capped at Rs.7.5 lakh.

Third party cover: What is not covered? 

Now let us quickly look at what is not covered under a third party motor insurance plan:
  1. Damages to the insured’s vehicle.
  2. Injuries sustained by the policyholder.
  3. Any injury or damage caused by accidentsthat happen due to war, terrorism or natural calamities like cyclones or earthquakes.
  4. Theft of your car

Comprehensive cover: What is covered? 

You get an all-inclusive deal when you buy a comprehensive car insurance cover.
  1. Covers damages and injuries sustained by a third party
  2. Covers damages and injuries sustained by the insured too.
  3. Offers personal accident cover in case you get injured badly because of an accident.
  4. Offers coverage in case your car gets stolen.
  5. Covers all legal costs.
  6. Covers damages/injuries resulting from natural as well as man-made calamities. So you will get a claim even if the accident happens due to man-made hazards like war, terrorism or any natural disaster like a cyclone or an earthquake.

Comprehensive cover: What is not covered?

The exclusions under a comprehensive cover are few:
  1. Any accident resulting due to drunken driving is not covered.
  2. Any damages suffered by your car due to terror attacks, war, invasion etc.
  3. Any consequential damage or malicious activities
  4. An accident caused by a driver without a valid driving licence will not be compensated for.

Choosing the right cover

So now that you know the basic differences between the two types of car insurance, you need to choose your car insurance properly. If you have an old car which you seldom take out, a basic third party cover should be enough. If however you drive a vehicle of value and use it frequently, you need a proper comprehensive car insurance plan. You can easily get the car insurance quotes online by comparing the various available options.

The bottom line

Keep the points mentioned above in mind and choose the proper car insurance plan. To do this, you need to analyse your insurance requirements first. Once that is done, get the car insurance quotes and buy a suitable insurance plan for your vehicle.