April 20, 2024

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How Many Types Of Motor Insurance Are There?

3 Types of Motor Insurance & Its Benefits

How does auto insurance work? 

Similar to other motor insurance online policies, motor insurance is “Mandatory,” unlike other insurances. Also, as implied by the name, it is insurance that covers all varieties of motor vehicles, including motorcycles, cars, jeeps, commercial vehicles, etc.

For your safety and the safety of others, the government has made motor insurance necessary. Furthermore, the yearly premium you pay is negligible in comparison to the benefits it provides you with in the event of, god forbid, any disaster. Another common misunderstanding is that only motor vehicles are covered by motor insurance. Mistake again! 

Let’s begin by talking about the different types of motor insurance policies and what they generally cover. Two categories can be used to categorise auto insurance. 

Based on the type of vehicle possessed, what are the many types of vehicle insurance in India? 

  • Private car insurance policy

The Government of India requires this type of motor insurance online to be purchased for any private vehicle that an individual owns. It includes coverage for theft, natural catastrophes, accidents, fire, and other damages as well as any injuries to the owner. Injuries and damages to third parties are also covered. *

  • Two-wheeler insurance 

The Indian government requires the purchase of this motor insurance coverage, which covers two-wheeled vehicles like scooters and bikes. The two-wheeler is protected from damage caused by mishaps, catastrophes, fire, theft, etc., and any damage or harm to third parties. It also provides a personal accident insurance option that is required for the owner rider and is also available for passengers. *

  • Commercial vehicle insurance

Any non-personally used automobiles are covered by this insurance. His insurance type covers any automobiles that are not driven for personal purposes. Some of the vehicles covered by this insurance include trucks, buses, heavy commercial vehicles, light commercial vehicles, multi-utility vehicles, agricultural vehicles, taxis/cabs, ambulances, auto rickshaws, etc. *

  • Third-Party 

One of the most popular types of auto insurance is third-party insurance, which solely covers losses and damages to third-party individuals, vehicles, or property. *

  • Comprehensive 

One of the most beneficial types of auto insurance is comprehensive, which covers both third-party liabilities and damage. *

If you use your car sometimes rather than every day, there will be fewer possibilities of an accident, so it makes sense to have third-party insurance. 

Also, paying such a high premium for Comprehensive Insurance for the entire year doesn’t make sense if you want to sell your car in a few days or months! Another thing to keep in mind is that a buyer on a tight budget will soon feel the effects of the comprehensive insurance’s high price! They decide to use Third Party Insurance for this reason. *

Despite this, we still advise Comprehensive Insurance over Third Party Insurance since its advantages outweigh the small premium you have to pay. A motor insurance calculator is a tool you may use online to determine the amount of coverage required based on your needs. *

There are several types of motor insurance available to vehicle owners depending on their individual needs and requirements. These include third-party insurance, third-party, fire and theft insurance, and comprehensive insurance. Each type of insurance provides different levels of coverage and protection to the vehicle owner against various risks, such as accidents, theft, and damage caused by natural calamities.

Therefore, it is important for vehicle owners to carefully evaluate their needs and choose an insurance policy that provides adequate protection and suits their budget. It is also important to regularly review and update the policy to ensure that the coverage remains relevant to changing circumstances.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.