July 20, 2024

Paull Ank Ford

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Overview of All the Coverage Available Under Your Car Insurance Policy

Six Types of Car Insurance Coverage | Allstate

As a car owner, you are mandatorily required to purchase a car insurance policy. Registration, along with it is a requirement at the time of buying a car. But when it comes to selecting an insurance plan, it often is confusing as to which policy you should opt for considering the myriad alternatives available. The selection of a car insurance policy is based on not one single factor but a combination of many. The coverage of the policy, the features of the plan, the out-of-pocket expenses required in the process, its premiums and many more. However, the coverage is a critical component to not neglect. This article mentions some of the coverages that are available when buying car insurance online or offline. Continue reading to know more. 

Liability coverage

A liability coverage under a car insurance policy, more in particular, the third-party cover comes handy when a third person faces injuries or damages to their property. This is generally the case when an accident due to your negligence or a fault results in a collision damaging third person’s vehicle and/or resulting in injuries. A liability coverage manages the costs of repairs or replacement to their damaged property along with treatment costs for injuries. When you buy a third party car insurance online, these benefits come as standard thereby offering coverage from any legal liabilities that become due to others. * Standard T&C Apply. Also, a liability coverage is the bare minimum that you’re required to purchase by way of third-party policies as per the Motor Vehicles Act. 

Collision coverage

Collision coverage refers to the insurance cover that pays for the damages and the necessary repair costs to your car. This coverage is popularly known as own-damage cover as is available either as standalone cover or a part of comprehensive plans. Coverage for such collisions must be subscribed considering the age of your vehicle. In the event where your vehicle is totalled or damaged beyond repair, the insurance company pays the IDV mentioned in your insurance document as the compensation. To minimise the financial impact of accidents on your wallet, a collision coverage comes handy. * Standard T&C Apply

Personal injury cover

In addition to the mandatory third-party cover, personal injury coverage is compulsory to safeguard yourself. However, the latest amendment relaxes the mandatory purchase of personal injury cover in the event you already have one thereby avoiding duplicity. With a personal injury cover, the coverage will provide for treatment costs if an accident occurs. Regardless of the fault, the insurance company pays for the medical bills. Also, this coverage can be extended to not only owner, but also the driver and passengers. * Standard T&C Apply

Add-on coverages

Add-on, as the name suggests, is an additional coverage that can be opted when you purchase comprehensive plans. These add-ons are over and above the standard comprehensive plans thereby contributing to the premiums. Among the different add-on covers, selecting only those that add value to your insurance plan is advisable and a car insurance premium calculator can help in that. * Standard T&C Apply

These are the different insurance coverages that can be bought. With that explained, it can now help you select a policy after making an informed choice. Also remember, insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.