What is Car Insurance? – Types of Car Insurance

Car insurance (or motor insurance) acts as a protective shield, protecting you against financial losses caused by theft, natural calamities, accidents and any liability arising out of them. Car insurance can cover third party vehicles as well as your own vehicle. There may also be cases when someone’s property has been damaged by you in an accident or others have been hurt. Car insurance policy also covers these third party liabilities.

Third Party Insurance Third party insurance is mandatory for driving a car in India, under the Motor Vehicles Act 1988. In addition to this general car insurance policy, you can choose to enhance your protection with our Comprehensive Car Insurance policy.

Under Comprehensive Car Insurance, Chola MS offers various customization and additional benefits like Depreciation Waiver or Zero Depreciation Insurance, Return to Invoice Cover etc., which helps in personalizing your insurance package and making it best suited to your needs .

How does car insurance work

Car insurance is a contract between the insurance company and the car owner. Under which the car owner pays the premium (as per the plan of the insurance company) to the insurance company.

In which the insurance company provides you financial assistance in case of loss or damage to the insured car.

Most of the insurance companies in India have partnerships with car companies. And when a person buys a new car, he is given car insurance under some offers.

Types of car insurance

Personal Accident Insurance

Personal accident cover can be taken by anyone for other people in your car. Personal accident insurance for other passengers is available according to the capacity of the seats present in the vehicle.

Third party car insurance

Third-party insurance is mandated by law. In case you meet with an accident, a third party car insurance policy takes care of the expenses that have been incurred on the car that you have collided with. The other party will get reimbursed for the loss and you will be saved from a financial disaster.

Comprehensive Car Insurance Policy

Experts say that a comprehensive car insurance policy provides end-to-end coverage. Because it covers both third party liability and your own loss. In addition, the policyholder can further enhance the policy by adding suitable riders. Some of these have zero depreciation. This saves a lot. Apart from this, there are add-on covers like Engine Protector Cover, Consumables Cover and Passenger Liability Cover, which provide protection to you and all the other passengers of the motorcar.

Read More:- Life Insurance: Plans and Policies

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