Owning a car comes with its own bag of responsibilities. Getting a car insurance in India is mandatory requirement imposed by the government. In a way, it is good to buy car insurance protects you against a number of risk.
Buying guide on car insurance
To begin with car finance its better to understand different car insurance in India:
- Property damage liability: This type of coverage covers claims for the property that your car may damage in case of an accident. Since liability coverage protects the other party, it is required throughout the country except for three states.
- Bodily injury liability: Injury and death related claims against you are covered in this type. Legal costs are also covered in the event if your car injures or kills someone.
- Medical payments: It covers for self-injuries along with the occupants of your car. In "no-fault" states, personal injury protection replaces medical payments as part of the basic coverage. Some states bear an exception to this type.
- Uninsured motorist protection: This type of car insurance in India covers injuries caused to you or the occupants of your car, in an event of damage by uninsured or hit-and-run drivers. "Under-insured" coverage also is available, that cover claims made by you against a driver who has inadequate insurance.
- Collision coverage: Covers damage to your car up to its book value. Collision coverage carries a deductible, which means that you have pay a certain amount per claim before the insurance takes effect. The lower the deductible, the higher shall be the premium. This type of insurance is not mandatory by law.
- Comprehensive (physical damage): Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible.
Used cars brought from a reliable source often come with good insurance plans, all you need to do here is change the name of the insured as per your new registration certificate. Pay special attention to coverage types when you buy a new car. Terms like cashless cover, high return policy, etc. may get confusing at times, so it is recommended you spend time reading the fine prints.
