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Understanding Car Insurance: A Guide to Choosing the Right Policy
M
Moneycontrol•05-10-2026, 16:38
Understanding Car Insurance: A Guide to Choosing the Right Policy
- •Third-party insurance is legally mandatory in India and covers your liability for injury, death, or property damage to others, but it does not cover repairs to your own vehicle.
- •Comprehensive insurance offers wider protection by combining third-party liability coverage with protection for your own car against accidents, theft, fire, and natural disasters.
- •Standalone own-damage insurance can be purchased separately if you already have a valid third-party policy to cover your own vehicle's damages.
- •Optional add-ons like zero depreciation, roadside assistance, and engine protection can enhance your policy, though they should be chosen based on your car's age and usage.
- •When buying car insurance, avoid focusing solely on the cheapest premium; evaluate coverage, exclusions, deductibles, IDV, and claim settlement processes.
Key Questions Answered
Yes, third-party motor insurance is the minimum insurance required to drive legally in India for vehicles used in public places, covering your liability if your car causes injury, death, or property damage to another person.
No, third-party insurance does not cover damage to your own car, as it only handles specified liabilities towards other parties. If you want protection for your own vehicle, you need own-damage cover or a comprehensive policy.
Yes, you can purchase a standalone own-damage policy separately if you already possess a valid third-party insurance policy, allowing you to add protection for your own vehicle.
