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Various Types of Coverage Under Car Insurance Explained

Various Types of Coverage Under Car Insurance Explained

Risk coverage differs from company to company and also on how much coverage you want to apply for. You might be aware of many such clauses, but it gets difficult to distinguish one from another. Also, you might not have a proper idea under which category your insurance plan falls. It can give rise to many questions such as the amount of coverage would you require – specific to your vehicle, driver, or third-party. It is important to know the different types of coverage available in order to be able to take an informed decision while choosing a car insurance policy.

Different Types of Coverage Under Car Insurance

Comprehensive Policies

As the name suggests, such a policy provides coverage for liabilities towards third-party involved and life or property damages towards the insured. It also includes personal accident risk cover which provides insurance if the policyholder meets with an accident and dies or is seriously injured. Such a policy has many other riders associated, which can be availed based on the type of coverage you need.

  • Zero Depreciation: Only the cars that are older than three years are eligible for it. Since a car depreciates in value over years, such coverage provides the benefits of receiving full claim when the parts are replaced.
  • Roadside Assistance: Unexpected situations while on the road like flat tyres, battery charging, out of fuel – can be met by getting roadside assistance even when you are in a remote location. It also includes availing transport like taxis or accommodation benefits.
  • Cover for Engine: Additional risk coverage if there is any damage to the car’s engine or electronic circuits.
  • No Claim Bonus (NCB): If you haven’t made any claims in a year of term, you are eligible for NCB. This also decreases the premium amount of the next year. However, if there are claims made in the following years, NCB becomes invalid.
  • Ignition Key Replacement: If you have lost the ignition key of car, such a cover reimburses from the cover for providing another key.

Third-party Liability

If you meet with an accident due to your fault or negligence, such a cover can be of great assistance. It pays for the repairing charges of the party involved, hospital expenses, any serious injuries, death formalities, or any other property. You should opt for purchasing minimum liability, as the other half will be paid by the insurance provider.

Collision Cover

Such a cover provides the risk coverage for the expenses for repairmen required after your car has met with and accident. However, if the repair expenses are more than car’s current market value, insurance provider will pay only the current value.

Personal Injury Cover

You can avail such a policy with the third-party liability insurance to pay for other risks involved. Such a plan provides coverage for all the costs associated with the accident, hospital bills of the person at the driving seat and other passengers, etc. Whether it is your negligence or others, the expenses will be paid by the insurance provider.

Uninsured Motorist Cover

If your vehicle is met with an accident with a vehicle that is not insured, you can avail the benefits of such a cover. You can include this as a rider with your regular third party car insurance. The insurance provider provides the coverage of additional or total amount to meet all the hospital and other medical expenses associated.

Private and Commercial Vehicle Cover

Some insurance covers are specifically for using the vehicle for private or commercial uses. Both the covers also provide coverage for personal accident and third-party liabilities.

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