Car Insurance
There are a number of different levels of car insurance that are available in India, as well as specialist cover such as classic car insurance for cherished vehicles or commercial car insurance for company vehicles. The level of cover and protection that you receive with your car insurance cover will depend upon the level of cover that you take out, and the cost of your cover will also be determined by this factor. There are three main levels of car insurance that are available in India, ranging from a basic level of cover to a comprehensive level.
Third party insurance cover
This is the most basic level of car insurance cover available in India, which means that it offers the lowest level of protection but also the lowest premiums. This level of cover should only really be used by those with vehicles that are of little value, and this is because the cost of repairs with older vehicles can often come to more than the value of the car, which means that this level of cover will probably suffice. With third party only cover any third party that sustains damage or injury as the result of an accident that was your fault will be covered. Your own vehicle will not be covered for the cost of damages with this type of cover, nor will it be covered in the event of fire or theft.
Third party, fire, and theft cover
The intermediate level of car insurance in India is third party, fire, and theft. The premiums on this level of cover are slightly higher than with third party only cover, but the level of protection provided is also higher. As with third party only cover, this level of insurance cover provide protection for any third party that sustains damage of injury as the result of an accident that was your fault. In addition to this, third party, fire, and theft cover also covers you in the event of a fire or if your vehicle is stolen. However, as with third party only cover, you will have to foot the bill yourself if your car is damaged in an accident that was your fault.
Fully comprehensive cover
The highest level of car insurance cover in India is fully comprehensive cover, and this provides the highest level of protection but is also the most expensive. For younger drivers or those with a history of claims this level of cover can be very expensive, and so these groups often opt for a lower level of insurance. Fully comprehensive insurance cover offers all of the protection of third party, fire, and theft cover, but in addition to this also covers your car even if the accident was your fault.