26 August, 2016
Auto insurance offers financial protection to car owners from various risks to their vehicles. Indian law makes it compulsory for new car buyers to avail insurance coverage against third parties in case of claims arising from accidental injury or death.
Vehicle insurance policies are valid for only one year and need to be renewed annually. These plans can be broadly classified under two categories; third party insurance and comprehensive insurance policies. These plans differ primarily in the extent of coverage they offer.
Third Party Insurance
These kinds of car insurance plans offer limited coverage. As should be evident from the name – these policies offer protection against damage and injury to the property of a third party. In such cases you are liable to pay for damages. However, these policies do not cover losses arising from damage inflicted on the insured vehicle or to the owner.
The Indian legal system makes it mandatory for new car buyers to purchase minimum third party insurance coverage.
This kind of car insurance policy provides the minimal required coverage of losses related to a third-party. In addition, comprehensive insurance offers protection from losses or damage to the insured vehicle and injuries to the owner, due to accidents.
Comprehensive coverage is also available for damages and losses that could arise due to theft, natural calamities, riots, fire, and terrorist activity. The wider coverage offered by such policies makes them highly beneficial and car owners are advised to avail such kinds of auto insurance at the time of purchase, even though the premium cost is higher.
Reducing Costs on Auto Insurance
Opting for lower coverage is not the only method of lowering the premium on your car insurance plan. To lower premium amounts you can also:
Royal Sundaram has a number of excellent offerings for car owners, one of them being the Car Shield policy. This auto insurance policy has several benefits that include free roadside assistance and discounts.
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