Insurance coverage refers to the kinds of protection available. Along with basic coverage under the policy, you can choose a number of add-ons to enhance the protection under the policies. Let us first show you the five types of car insurance coverage available in India

Third-Party Liability Only Cover:

Under this type of car insurance coverage, you will get the following benefits:

Cost of repairs/replacement of the damaged vehicle of third parties

Cost of hospitalization and treatment of third parties

Liabilities arising out of death of third parties

According to the Motor Vehicles Act, third-party car insurance coverage is a must to drive on the roads. The sum assured should be according to the driving conditions and sufficiently high to avoid out-of-pocket payments from your side.

Collision Damage or Own Damage (OD) Cover:

When you opt for collision damage car insurance coverage, the cost of repairs to your vehicle that has been damaged is reimbursed. To determine the cost of collision coverage, its age and Insured Declared Value are taken into account to arrive at the premium. The IDV is based on the market value of the vehicle. When a claim is lodged under collision coverage policy, the maximum amount payable under the policy is given by the IDV less accumulated depreciation. If you have purchased your vehicle on a loan, you should hold collision cover.

Personal Accident Cover:

When you wish to protect yourself, i.e., the owner-driver of the car, by opting for reimbursement of medical expenses after an accident, you are using personal accident car insurance coverage.

Zero Depreciation Insurance:

This coverage is generally offered as an add-on to car insurance policies in India. Suppose your vehicle is damaged and you need to replace the parts. The insurer will consider the depreciated value of the parts for claim settlement. A Zero Depreciation Cover will help you get the complete claim amount without accounting for any depreciation in the costs.

Comprehensive Car Insurance:

This type of coverage gives the highest level of protection as it includes liability for third parties, damage to own vehicle, personal accident cover, and all non-collision damage such as storms, floods, fire and theft. You can further enhance a comprehensive car insurance policy with a choice of add-ons.