While choosing a car insurance scheme in India, it’s essential to have all the facts in mind to make an informed decision. To select the best type of insurance cover for your four-wheeler, you must be aware of their scope and coverage to avoid any unexpected costs.
Types of vehicle insurance
There are mainly two types of vehicle insurance types in India:
- Third party car insurance: This insurance scheme covers your liability towards a 3rd party in case of accidents. It is applicable only if your car has caused damage to another vehicle, property or life. Every four-wheeler owner in India is legally obliged to avail such an insurance cover. It ensures that in situations like a road accident, the party who is harmed by your car is compensated.
- Comprehensive insurance: As the name denotes, a comprehensive car insurance policy offers complete coverage to the policy owner. It’s not compulsory by law to have such an insurance policy in place, but it’s often the preferred choice for most motorists as it covers both damage and third-party liabilities. Moreover, it includes the repairing cost for the damages caused by natural calamities as well.
You can avail a car insurance scheme offered by Bajaj Finserv to cover personal injuries, third-party property damage and even death.
Difference between the two
Both comprehensive and third-party car insurance schemes differ regarding their purpose and coverage policy. Here are the significant differences between a liability-only cover and a comprehensive coverage plan –
- In case of third-party insurance scheme, the coverage only extends to legal liabilities towards any third-party loss or damage. Whereas, a comprehensive policy offers an all-around cover of your vehicle along with the third-party liability.
- The former provides extensive protection ranging from damage, theft or even permanent loss of your car. However, the latter does not offer any complete financial coverage of the vehicle. Thus, you can benefit from a personal trip liabiity cover under the Pocket Insurance schemes offered by Bajaj Finserv.
- Liability-only insurance plans come at lower premiums as compared to comprehensive plans. On the other hand, comprehensive insurance plans come with significantly higher premiums as it offers wide-ranging protection to both your vehicle and the third-party’s.
- Third party car insurance are mostly chosen in India for low-value automobiles and for those who own old vehicles while a comprehensive plan is taken by owners of high-end cars mostly.
The documents needed for vehicle insurance are –
- Vehicle registration
- Invoice of your car
- Driving license
- Photo ID proof
- Address proof
- Account statements
Additionally, you also enjoy customised add-on covers like engine protection, return to invoice, no-claim bonus, roadside assistance, key replacement, etc.
Can you buy vehicle insurance online?
Most vehicle insurance providers offer to buy car insurance online to make the process faster and hassle-free. It provides easy online product comparison and prices. Moreover, you can choose your insurance policy at the convenience of your home and enjoy seamless online application procedure. Furthermore, you can also enjoy exclusive discounts applicable to online applicants only.
How to apply?
Follow these steps to apply for vehicle insurance –
- Visit the insurer’s website.
- Provide your car details like make and model, registration details etc.
- Select the type of insurance you want.
- Share the personal details.
- Select the policy, premium duration, etc.
- Customise with add-ons as per your choice.
- After you receive a quote, submit the application.
You can avail a car insurance online from NBFCs like Bajaj Finserv where you can get exclusive deals on Motor Insurance with additional covers and online renewal facility.