As with most countries around the world, it is mandatory to consider motor insurance in India if you own or are looking to drive a car. The consequences of not having motor insurance in India could well be costly in terms of legal fees or fines. Additionally, you may have your car impounded if you are caught without any motor insurance in India while driving.
Types of Policies for Motor Insurance in India
When looking for motor insurance in India it is worth keeping in mind that there are two types of policies available. One type is "fully comprehensive" and the other is "third party." It is very important to understand the differences between the two before you actually take out a new policy.
Third Party Motor Insurance Policy in India
First, let's examine the "third party" type of policy. Generally, this is the less expensive of the two and will cover the cost of bodily injury or death to a third party and/or damage to a third party's property (which would be their vehicle, in this case). In simple terms, if you were to have an accident and it was your fault, then your policy would pay for the other person's damages (but not for your own, if any). This type of policy is fine if you have, for example, an old car that is not worth much money. However, if you have a relatively new car, then carrying a third party policy may mean that you will lose your car (and have to replace it) or pay for any damage to it out of your own pocket.
Fully Comprehensive Motor Insurance Policy in IndiaThe other type of motor insurance in India is the fully comprehensive policy. If you have the money for this type of policy, then it is likely well worth owning. Under the comprehensive policy, it actually contains the same elements of the third party policy in addition to covering the loss of or damage to your vehicle, which can include accidental things such as:
- Fire damage
- Lightning damage
Getting Motor Insurance in India From a DealerIf you are purchasing a car from a dealership, it may be worth asking them if they provide insurance, as some dealerships have associations with insurance companies for their customers. Depending on what you find, it could be a great way to save some money on your motor insurance in India.
Whichever motor insurance policy you choose for your vehicle in India, just remember to always read the fine print first. Find out exactly what the policy covers, because the last thing you want is to have an unfortunate accident and then realize that you are not fully covered for whatever your claim may be. Make sure your policy is exactly the type of policy you require.