7 Car Insurance Terms You Must Know Before You Buy Coverage

  In India, it is mandatory for every motorist to have at least basic insurance for their vehicle before heading out on a drive. Usually, people take the help of professionals to properly purchase a car insurance policy. This is majorly because they often lack knowledge about car insurance. However, it is always good to have a better understanding of your own policy better. This knowledge will come in handy especially when you want to buy or renew your policy on your own online. To that effect, here are the meanings of a few car insurance terms that you may come across when buying or renewing your four-wheeler insurance coverage.

Third-party Insurance:

A third-party insurance policy is the most basic type of insurance without which driving on Indian roads is illegal. Your third-party insurance compensates the third-party in situations where your car causes damage to their vehicle or any injury to them.

Comprehensive Insurance:

A comprehensive four-wheeler insurance policy financially protects the insured vehicle against accidents, man-made calamities, and natural disasters. Manmade disasters include incidents of riots and theft. Natural disasters include floods, earthquakes, storms, cyclones, and other similar occurrences. The policy compensates for own damages as well as the losses incurred by the third-party involved. You can further modify your comprehensive insurance policy by including add-ons according to your preferences.

Add-ons:

These are additional covers that one can buy to supplement their basic four-wheeler insurance policy. You may have to pay a little extra to include add-ons in your policy but you can widen the scope of your coverage by opting in for these. A few common add-ons commonly preferred by most car owners are zero depreciation cover, engine protection cover, roadside assistance, and passenger cover, among others. Make sure to always review your need for coverage during insurance renewal and fill in any gaps with the help of suitable add-ons.

Original Content: 7 Car Insurance Terms You Must Know Before You Buy Coverage