Car insurance is a crucial financial safeguard against unexpected mishaps, offering coverage for damages, accidents, theft, etc. In India, the primary types of car insurance are liability, comprehensive and collision. It’s essential to grasp the differences between them to decide on the coverage that suits your needs.
Collision Insurance: What Is It?
Collision insurance is a type of car insurance that covers the cost of repairing or replacing your vehicle if it is damaged in an accident involving another car or if it rolls over. While legally required, it becomes mandatory if the car is financed through a loan or lease. This insurance covers your car’s damage regardless of who caused the collision. Claims are subject to terms and conditions set forth under the motor insurance policy.
Comprehensive Insurance: What Does It Entail?
Comprehensive insurance, often called other than collision, covers losses caused by natural disasters, human activity, and accidents. It is optional coverage that extends to theft, vandalism, fire, floods, falling objects, and more. Like collision insurance, comprehensive car insurance covers vehicle damage up to the policy limit, less your deductible. Claims are subject to terms and conditions set forth under the motor insurance policy.
Liability Insurance: What is it?
Liability insurance is an essential component of car insurance that covers damages and injuries caused to others during an accident where you are at fault. This type of insurance protects you from the financial repercussions of bodily injury or property damage claims filed by other parties involved in the accident. Liability insurance ideally includes two main components: bodily injury liability, covering medical expenses and related costs for injuries to others, and property damage liability, which addresses the costs associated with repairing or replacing the property of others. Having liability insurance is often a legal requirement. It is a crucial financial safeguard, ensuring you can meet your legal obligations and safeguard your assets in an unfortunate accident. Claims are subject to terms and conditions set forth under the motor insurance policy.
The primary differences between liability, comprehensive and collision insurance lie in the coverage they offer and the types of losses and damages they cover:
Comprehensive Insurance:
Protects against losses from accidents, riots, natural disasters, and theft. *
Collision Insurance:
They are designed for accident coverage, covering damage from collisions with other vehicles or objects. *
Liability Insurance:
Covers damages and injuries caused to others in an accident where you are at fault, addressing bodily injury and property damage claims filed by third parties. *
Do I Require Comprehensive Collision Insurance?
Third-party insurance is mandatory for all car owners in India, while comprehensive insurance is optional. Your choice depends on your unique situation and requirements. Understanding the benefits of each type of coverage is crucial to selecting the insurance that aligns with your financial and technical needs for your car. You can use the Bajaj Allianz car insurance calculator to estimate the costs of premiums to be paid. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Understanding the nuances of different types of car insurance coverage—liability, comprehensive, and collision—is crucial for making informed decisions to safeguard yourself and your vehicle. Utilising a specialised app for car insurance streamlined the entire process, allowing me to easily manage my policy, access important documents, and stay informed about coverage options on the go.
Get insured anytime, anywhere! Check out Bajaj Allianz General Insurance website to learn more and download the app now.
*Standard T&C Apply
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
