Different types of car insurance coverage you must know about

The importance of car insurance has been reiterated several times. There are a variety of insurance products available in the market. Here we list some basic types of car insurance that can be considered for beginners.

A liability insurance covers the cost of repairing any damaged property and subsequent medical bills, if any, for the injuries caused by an accident involving your car.

Liability insurance is often a bare minimum insurance cover that is mandatory for car drivers to possess. It's a life-saver in case of accidents where you're at fault.

A comprehensive car insurance protects your vehicle against a wide range of issues like weather damage, theft and other issues, which are not taken care of standalone covers.

In case of an accident, a collision cover can pay for the damage cause to your car. Here, if the repairing cost exceeds the value of the vehicle, the coverage is liable to pay for your car’s value. Zero depreciation insurance is part of this coverage.

But if your car is relatively old, there is enough probability that a collison insurance may not be worth investing in. Thus, evaluate the current market price of your vehicle and look for an insurance cover accordingly.

A personal injury protection cover can take care of medical bills of the driver as well as co-passengers, irrespective of who is at fault for the accident. Howver, this insurance isn't available pan India.

If your car is hit by another vehicle which isn't insured, one may have to bear the repair cost from own pocket. Underinsured motorist coverage steps in when the at-fault driver's liability limits are too low to cover the medical expenses of the injured people.

The at-fault driver's insurance normally pays for all damages up to their auto insurance policy limits. If it ins't sufficient, your underinsured motorist coverage can cover the excess amount up to the limits you select.

For the unversed, as per the Motor Vehicles Act 1988, any car plying on public roads in India has to mandatorily be covered by a third-party cover, if not comprehensive car insurance.