Types of Motor Insurance
What is Motor Insurance?
Motor insurance is just like any other insurance policy, but unlike other insurances, it is ‘Mandatory'! And, as the name suggests, it is an insurance that is related to all types of motor vehicles-motorcycles, cars, jeeps, commercial vehicles etc.
Motor insurance has been made mandatory by the government for your safety and the safety of others. And the yearly premium you pay is just a meagre sum when compared to the advantages it has to offer you in case of, god forbid, any mishap.
Here’s yet another misconception many people have, Motor Insurance covers only the motor vehicle. Wrong again!
So first, let's start with the types of Motor Insurance policies, and by and large what they cover! Motor insurance can be classified on 2 things
- The type of vehicle for which you are taking insurance
- The amount of coverage that you want to cover your vehicle for
So, what are the different types of vehicle insurances in India based on the type of vehicle owned?
Types of Motor Insurance in India
Types of Motor Insurance Policies in India
Third-Party
Comprehensive
Damages/Losses to own vehicle due to an accident | × | ✔ |
Damages/Losses to own vehicle in case of fire | × | ✔ |
Damages/Losses to own vehicle in case of a natural calamity | × | ✔ |
Damages to Third-Party Vehicle | ✔ | ✔ |
Damages to Third-Party Property | ✔ | ✔ |
Personal Accident Cover | ✔ | ✔ |
Injuries/Death of a Third-Party Person | ✔ | ✔ |
Theft of your vehicle | × | ✔ |
Doorstep Pick-Up & Drop | × | ✔ |
Customize your IDV | × | ✔ |
Extra protection with customized add-ons | × | ✔ |
Add-ons with Comprehensive Motor Insurance Policy
Listed below are few of the ‘Add on’ covers that can be availed at a slight premium over the basic motor insurance policy cost.
So, you might be wondering why someone would go in for this insurance when they aren’t going to personally benefit anything out of it. Right?
Well, it makes sense to take Third Party insurance if you use your vehicle only occasionally and not as your daily commute, so there will be lesser chances of a mishap happening right.
Also, if you are planning on selling your car in a couple of days or months, it doesn’t make sense to pay such a high premium for Comprehensive Insurance for the entire year!
Another point to be noted is that the hefty premium that comprehensive insurance demands eventually takes its toll on the buyer with a limited budget! This is the reason why they choose to go with Third Party Insurance.
That said, we still recommend Comprehensive Insurance over Third Party Insurance, for the simple reason that its benefits are well worth the slight premium you pay.
At the end of the day the good old holds true when it comes to choosing your Motor Insurance- “NEVER BE PENNY WISE AND POUND FOOLISH😊!”