Here are the main types of car insurance, along with real-time examples for each:
- Third-Party Car Insurance:
- Example: You hit another vehicle, causing damage to it. Your third-party insurance will cover the cost of repairs for the other car and any injuries sustained by the other driver. However, it will not cover any damage to your vehicle.
- Comprehensive Car Insurance:
- Example: Your car is involved in an accident, and the damage exceeds ₹1 lakh. Comprehensive insurance will cover the repair costs for your car, as well as any third-party liabilities, theft, fire, or natural calamities.
- Own Damage Insurance:
- Example: A tree falls on your parked car, causing significant damage. With own damage insurance, you can claim the repair costs for your car, as this policy specifically covers damages to your vehicle.
- Zero Depreciation Cover:
- Example: After an accident, your car requires new parts. With zero depreciation cover, the insurer will reimburse the full cost of the new parts without deducting any depreciation value, ensuring you receive a higher claim amount.
- Personal Accident Cover:
- Example: In the event of an accident where you sustain serious injuries, personal accident cover will provide you with financial support for medical expenses or a lump sum payout for permanent disability or death.
- Pay-Per-Kilometer Insurance:
- Example: If you drive your car only occasionally, you can opt for pay-per-kilometer insurance. You pay a base premium plus a fee for every kilometer you drive, making it cost-effective for infrequent drivers.
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