What All Items Does Car Insurance Policy Covers?

Car Insurance Policy Covers

Items Car Insurance Policy Covers

Car insurance or motor insurance is currently mandatory by law. It is just like a mandatory document that a driver must have before driving car in India. While items that will be covered under car insurance policy might differ depending about the product. Some of the list of items that a car insurance policy covers are:

  • Liability insurance

Liability insurance is the comes in picture when it is observed that the accident occurred due to actions. While the liability insurance will even cover the repairing cost arising after the accident. It also covers the medical bill expenses which is given to the person who is the owner of the policy and other people who were in the policy owner’s car.

If you can afford to buy liability insurance coverage then it is always a better option to have more coverage then the minimum state coverage requirement. Since if you will take other coverage then it will provide you additional protection at an accident even you will be at fault. Now with liability coverage you will not have the fear of paying additional amount from your pocket as your car insurance policy covers has been exceeded.

Also Read>>> What is Third Party Liability Insurance for Cars and Motors

  • Personal injury protection

Personal injury protection (PIP) coverage is some that you should buy. Because maximum benefits are offered by PIP hence it is advised to buy it. PIP is an extension of car insurance policy. It provides the medical expenses, transportation cost to the hospital, lawn repair, loss of wages in some of the cases.

The cost incurred after the accident will be quickly added up and then to cover that cost personal injury protection is available. Under this protection your medical expenses will be payed along with the passengers. This protection is not available in all the states and it is provided irrespective of the one who is at fault.

  • Uninsured and under insured motorist coverage

Several states in the country have made it mandatory to have car insurance policy. But unfortunately this may not the case in some situations. Such coverage is provided when the driver don’t have any insurance or possess insufficient insurance. In some states have lower minimum coverage requirements which may not be enough to cover all the expenses at the event of accident.

Hence at the accident if someone is legally responsible for the damages then you won’t get payment if they possess no coverage. In simple words you will receive lesser amount then the amount you actually require. While you will have to pay the additional amount from your pocket.

In such a situation uninsured and under insured motorist coverage comes in picture. Different states have different policies regarding liability insurance coverage. While some have minimum requirement for the amount of coverage that the driver must have.

  • Collision Coverage

If you have taken collision coverage then you will be provided with the expenses incurred due to collision of car. The total car will be valued like if the cost of repairing the car will exceed the cost of car. Then in such a case you will receive the cost of car.

If your car is new or is expensive then the insurance company will help you in reaching the position where you were before the accident. While if your car is older then it is not worthy to carry out the collision coverage on such cars.

Car Insurance Policy Covers Physical Damage To Your Car Under Certain Instances:

There are two instances in which physical damage covers damage to your car they are:

  • It covers loss to your car due to collision.
  • Even accounts non-collision physical damage like damage due to storm or windshield breaks etc.

Different Types of Coverage Packages:

  1. Third Party Car Insurance Policy

Well the insurance policy is signed between the insurer and insured. Now its clear that the third party is the one who is neither the insurer nor insured. So now third party in car insurance policy is the one who may be the pedestrian, fare paying passenger or non-fare paying passengers in the vehicle of the insured.

Third party can be anyone in the insured vehicle he or she can either be the driver, owner of the vehicle or other passenger. Non-fare paying passengers are the one who travel in the vehicle for free. While the fare paying passengers are the ones who travel in public transport like buses or taxi.

Furthermore the third party car insurance policy covers the legal liability for any kind of compensation arising from accident. This policy also covers the death of the third party like pedestrian, passengers on other vehicle, etc.

2. Comprehensive Car Insurance Policy

Under the comprehensive car insurance policy protection is provided against the loss or damage caused to the vehicle. The loss or damage can be due to natural or man-made calamities. The term natural calamities includes lighting, fire, explosion, flood, typhoon, storm, cyclone, rockslide, landslide, shock damage, tempest, frost etc.

However man-made calamities comprises of housebreaking, burglary, riot, theft, accident by external means, terrorist activities, inland waterway, air etc. The owners of the personal accident cover can even avail cover for the passengers of the vehicle. While the another feature of the this cover is third party liability cover.

Also read >>> What is Comprehensive Car Insurance?

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