1.466 billion cars are driving off the world on their wheels. Still, most people do not have insurance. From daily transportation to conveyance for cargo, live cargo, and passengers. From small daily transportation to business-based transportation of products. The things that have made our life so easy, we have to protect them from any damage, theft, natural calamity, etc. Here, Vehicle insurance comes into play. Vehicle insurance serves as a financial and monetary shield. The different types of vehicle insurance offer protection and safety for your vehicles.
Understanding and analyzing the different types of motor insurance. It is vital to know which type of insurance is best and choose the best type of vehicle insurance that aligns with your requirements and wants. Vehicle Insurance can be taken up for various cars, motorcycles, trucks, etc.
In this blog post, we will learn about various types of vehicle insurance. Let us learn them one after another:-
What are the Various Types of Motor Insurance in India?
The various types of motor insurance in India are as follows:
- Liability Insurance: Safeguarding Others
Liability insurance is the base of most of the different types of vehicle insurance policies. It is sometimes also known as Obligation Insurance. It gives complete inclusion for bodily injury liability and property harm you might have caused to the third-party people in an accident. It especially helps majorly in cases where you are at fault.
This type of insurance is mandatory by law in India, highlighting the significance of being financially responsible for the harm and damage you may have caused accidents on the road. Liability insurance can be further broken down into two major components:
a. Bodily Injury Liability (BIL):
This portion of liability insurance or obligation insurance covers clinical bills and costs, restoration and rehabilitation expenses, and legal charges related to wounds, injuries, or, in extreme cases, death caused to others in a mishap or accident where you are at significant fault. Bodily injury Liability ensures you can meet your monetary commitments and financial obligations in the unfortunate event of hurting or harming somebody while driving.
b. Property Damage Liability (PDL):
Property Damage Liability (PDL) deals with the costs and expenses connected with the harm and damages caused to others' property, like vehicles, structures, or different buildings, etc. Whether it is the hefty expense of repairing or fixing a harmed vehicle or making up for a broken wall, PDL guarantees you are monetarily safeguarded.
- Collision Insurance
On the one hand, liability insurance centers around and majorly focuses on safeguarding others, but collision insurance steps in to defend and protect your vehicle. It takes care of the expense of repairs, fixes, or replacements in case your car is damaged in a crash with another vehicle or article, paying little mind to blame.
Collision Insurance is especially important for people who have bought newer or precious vehicles. This is because their repairs and replacement costs are far higher than those of ordinary cars. It is essential to note that Collision Insurance accompanies a deductible, the sum you want to pay personally before the protection inclusion kicks in.
- Comprehensive Insurance
Comprehensive insurance expands the inclusion of collision insurance by safeguarding your vehicle from a more extensive scope of dangers. It is basically a kind of extension of the vehicle insurance policy. This kind of Insurance covers harms and damages brought about by misfortunate events other than crashes or collisions, for example,
a. Natural Disasters:
Natural disasters and calamities such as floods, earthquakes, wildfires etc. are covered under these comprehensive insurances.
b. Theft and Vandalism:
If your vehicle is stolen or destroyed by any means, comprehensive insurance comes in as a saver to cover the loss or damages.
c. Falling Objects:
This category includes damage caused by hail, a snowstorm, a falling branch or a whole tree, or other objects that fall onto your vehicle and cause any kind of loss to your vehicle.
d. Animal Collisions:
Comprehensive insurance also includes the losses, harm and damages caused by collisions with animals, such as livestock animals or deer etc.
By incorporating Comprehensive insurance into your policy, you will ensure that your vehicles have a very strong safety guard.
- Personal Injury Protection (PIP): Comprehensive Coverage for Personal Injuries
Personal Injury Protection, commonly known as PIP, is a kind of insurance that gives inclusion to clinical costs, lost compensation, and other related costs for yourself as well as your travelers, paying little heed to who is to blame in a mishap. PIP is intended to offer a quick goal to hospital expenses and other monetary difficulties that might emerge from an auto crash, wiping out the requirement for extended fights in court to decide shortcomings.
PIP is especially significant in no-shortcoming protection states, where each party engaged in a mishap is liable for their own harm, paying little heed to who caused the mishap. It guarantees that you get the fundamental clinical consideration and pay expeditiously, advancing a speedier recuperation process.
- Rideshare Insurance: Tailored for On-Demand Drivers
With the increase in rideshare businesses like Uber and Lyft, customary insurance contracts may not completely cover drivers during their on-the-job hours. Rideshare protection is intended to fill this gap, giving inclusion that kicks in when the driver is involving the vehicle for the purpose of ridesharing. Rideshare protection commonly covers the period when the driver has the rideshare application turned on and is hanging tight for a ride, as well as the span of the excursion with travelers.
This type of vehicle insurance guarantees that rideshare drivers have essential insurance all throughout their whole work process, from getting travelers to dropping them off at their objective.
There are some other types of vehicle Insurance. Such as:-
- Private Car Insurance Policy- This is for people who own private cars. It is for vehicles used for personal use. This insurance is mandatory under the Motor Act of the government of India.
- Two-Wheeler Insurance Policy- This insurance is specially curated for people who own two-wheelers. Since the automobile sector in India has the biggest number of owners, this type of Insurance caters to the maximum number of Indian vehicle owners.
- Commercial Vehicle Insurance- This type of vehicle insurance covers vehicles used for commercial purposes, such as trucks that help transport raw materials, buses, taxis, etc., from one place to another.
Which are the Best Car Insurance Companies in India?
Some of the best Car Insurance policies in India to take out Insurance for your car are:-
- Reliance General Insurance
- ICICI Lombard Insurance policy
- Bajaj Allianz General Insurance Company
- SBI General Insurance Company
- Magma HD
- Future Generali Car Insurance
Some of the Best 2 wheeler insurance companies in India are:-
- IFFCO Tokio General Insurance
- Royal Sundaram General Insurance
- The Oriental Insurance Company
- Universal Sompo General Insurance
Conclusion
Navigating the complex landscape of vehicle insurance is a crucial aspect of responsible vehicle ownership. Choosing the right types of vehicle insurance coverage ensures that you are adequately protected against a range of potential risks, from accidents to natural disasters and beyond. As you embark on this journey, consider your individual needs, driving habits, and the value of your vehicle. By selecting a well-rounded insurance portfolio, you can enjoy the freedom of the road with the confidence that you are prepared for whatever twists and turns lie ahead.
