Your car is like a house on the road; your abode on the move. And is easily susceptible to unforeseen circumstances that can lead to damages. Needless to say, insurance policies cover these detriments depending on the covered segments. It is an intelligent decision to buy a suitable policy. Moreover, you are obligated under the law in India to obtain car insurance.
Choosing a particular policy can be confusing at best with all its clauses. With all the variations in the policies, you might end up choosing an unsuitable plan which will affect your finances at the time of availing compensations. Read about the following types of policies to minimize your expenses after an accident.
This insurance ensured the safety of a third party you might harm during an unexpected circumstance. In case of an accident, if there’s damage to someone else’s vehicle or government property, the insurance company will pay for the damages. It recompenses the amount for maintenance like fender repair or car glass replacement of the third party’s vehicle if it is determined your fault. Liability insurance is mandatory for vehicle owners.
This category of insurance covers repairs or damages to your vehicle in case of a collision but isn’t obligatory by law. This is what makes it different from liability insurance. The insurance company will pay for the covered parts in your insurance policy. All car owners, especially with high-end cars, are advised to buy collision insurance as it turns out to be beneficial in case of hefty damage or total loss. At times, it is hard to incur the smallest of losses and collision insurance comes to the rescue.
As the name suggests, this type covers most of the damage irrespective of whose fault caused the accident. It takes care of small adjustments like windshield chip repair to even the heftiest damages. It also includes coverage of natural disasters and thefts. Although logically, this insurance entails higher premiums which can substantially add to your expenses.
Personal Injury Protection (Medical)
Personal injury cover reimburses your expenditures on personal health-care in case of an unfortunate event. It includes other passengers in the car as well. It doesn’t matter who is at fault for the accident, the passengers of the car still receive compensation up to a fixed amount. This insurance can be substituted by a suitable health insurance plan as well, but it won’t cover rest of the passengers.
Guaranteed Auto Protection (GAP) Insurance
The GAP policy covers the damages to your vehicles before you’ve completely paid off its installments. It aids you immensely to pay the value of the car in case of total loss. If the current value of your car is less than the outstanding installments, this is the best policy for you. This type is sometimes already inclusive of your vehicle plan depending on your moneylender’s policies.
Always choose the policy or plan after considering your vehicle, requirements, and budget. If chosen correctly, these policies substantially reduce or completely return your expenditure on car repair and care.