There are three types of car insurance policies and one can select the policy that meets one’s needs and purposes.
These are as follows:
Comprehensive cover: This is the most popular policy cover that offers comprehensive coverage to the policyholder. The cover offered by the policy includes reimbursement of cost of repairs for damage to the car caused by an accident, personal accident cover to compensate for medical treatment of injuries caused by accident, theft of the vehicle and third party liability arising out of damage caused to the property or injury caused to the life and limb of another person by the policyholder.
Third party liability cover: The third party liability cover is mandatory in India and covers the damage and/or injury caused by your car to another person or property.
Collision cover: This cover provides protection to the policyholder against damage caused to his own car due to an accident. However, this policy does not cover damage caused by vandalism or theft of the vehicle.
So, it is necessary to understand one’s needs and the purpose for which the vehicle is to be used and then decide on the type of car insurance cover that is most suitable for you.