Note: All the private and public sector insurance companies are governed by IRDA (India Regulatory and Development Authority).
Auto Insurance coverage provides financial protection if the policyholder causes an accident that damages other person’s car, property, injuries etc.
In order to find the best-suit coverage, one must know which type of insurance coverage is offered and what other add-ons can be beneficial. For this, customer must know the types of coverage and premium cost of each.
Low premium policy covers minimum coverage, so one should know the add-ons to get the coverage plan as per the requirement. Here is the brief list of coverage in which some coverage is must-have, come are optional and some are add-ons beneficial.
1) Must-have Coverage
Auto liability coverage necessary for all vehicle owners includes
• Bodily Harm Liability
The coverage costs against the body injuries or death of others caused by policyholder.
• Property Damage Liability
The coverage costs for others’ property damage such as vehicle or building that is caused by policyholder.
2) Needed Add-ons Coverage
Most of the coverage needed frequently:
• Medical Expenses Coverage
The coverage gives reimbursement for medical expenses for policyholder’s injury or body harm.
• Uninsured Motorist Coverage
The coverage provides the cost when an accident is occurred by an uninsured motorist or hit-and-rum case.
3) Optional Coverage
Optional coverage assures the care of the damages to the policyholder’s vehicle.
• Collision Coverage
This coverage provides the cost of damages incurred to the vehicle as a result of collision with another vehicle or other object such as pillar or tree. Collision coverage does not cover losses such as Wear and Tear, Mechanical Breakdown, Uninsured accessories like Gas Kit, Bi-fuel, and Tyres.
• Comprehensive Coverage
This coverage provides protection against theft or damage caused by natural or manmade disasters such as fire, earthquake, detonation, flood, cyclone, storm etc.
• Glass Coverage
Most of the insurers do not include glass coverage. But customers can get coverage such as Side Windows, Rear Windows and Glass Sunroofs.
Above mentioned type of the vehicle coverage is offered by the insurers. Customers can select one as per their requirement.
Get more IRDA Guideline
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