Different Types Of Auto Insurance Coverage You Need To Know

Auto insurance will go a long way to provide you with the ideal financial protection you require. You can easily apply for this car insurance when you apply for a car loan. Additionally, since the government of India has made it mandatory for most automobile owners to apply for this insurance, it is crucial that you understand what are the different covers you are eligible for under this insurance. Given below are the different yet common covers in insurance. 

Vehicle Damage

Unexpected mishaps and calamities can affect your vehicle. This can include man – made mishaps like accident, theft, riot, strike, malicious act, terrorist activity, damage in transit and housebreaking. Natural calamities like include earthquake, fire, flood, hurricane, landslide, lightning, inundation and many more others can also affect your vehicle. When you apply for a car loan, you can get auto insurance which will protect you against such damages. In the situation where there is a loss of the vehicle, you will be compensated against the given value of the car at the current market rate.

Personal Accident Cover For Owner-Driver

When travelling in a vehicle, there is a high chance that at least once in your lifetime, you will face an accident. Depending on the extent of the accident, you will need to spend finances. Through this auto insurancecover, you will be financial protected in the occasion you are injured. However, this is only applicable to a car that is insured. The compensation in such a situation is subjected to a maximum limit of Rs 2 lakhs which should be declared and claimed within 6 months of the injury.

Third Party Legal Liability

The third party legal liability cover is most common in the insurances that come with the car loan. Under this cover, a person is legally enforced to pay compensation if the damage is caused to the third party person or property in the event of a vehicle accident. This car insurance cover protects against those legal liabilities that originate due to accidental damages which may result in injury or even death to the third person and the property. The limit for property damage is defined and the limit for bodily injury or death is not fixed as it will depend on the extent of the situation.

Bodily Injury Liability
 
Bodily injury liability covers other people's bodily injuries or death for which you are responsible. However, it does not cover you or other people in your vehicle during that time of incident in the policy. The claims under this car insurance for bodily injury may include such things as medical bills, loss of income or pain and suffering.In the event of a serious accident, you would want enough financial assistance to cover a judgment against you in a lawsuit without risking your personal assets.

Neha Sharma is a finance student who loves to write in her free time. She has considerable experience about the auto insurance. Through her work, she has provided valuable information on the different covers under this car insurance.