Various kinds of coverage are included in car insurance in India and only your reliable insurance broker will guide you on the type and amount of car insurance coverage you should have to buy to meet your requirements. Below are some of the coverage types that your car needs:
Property Damage Liability: Sometimes, the minimum that you must carry varies depending on the state, but that minimum may be not enough to save you in a serious accidental event. If you have a policy which covers property damage liability, then you will be paid for excessive expenses.
Bodily Injury Liability: The minimum coverage for bodily injury varies with insurance companies. The liability coverage amount should be high enough to secure your assets in accidental events. If you have a cheap auto insurance, then prepare yourself to lose more if your assets are of greater value. Therefore, the auto owner needs to purchase liability insurance appropriate to the asset’s value.
Collision: It covers the expenses of damage to policyholder’s car in an accident. You don’t require to analyze how much to buy because it depends on the automobile(s) you cover. But, the customer will have to finalize how large a deductible to take and whether to purchase it. Higher deductibles lead to lower premiums.
Comprehensive: This type of coverage covers the expenses of miscellaneous damages which happened to your vehicle but not caused by a collision like theft or fire. Along with collision coverage, you will have to select a deductible.
Uninsured Motorist Coverage: It helps policyholder when he/she is involved in the event of an accident and the other driver is at fault but has no or very little insurance. It fills the void between the other driver’s coverage and your cost, at least up to your coverage limit.
Personal Injury Protection: This coverage is important to cover medical expenses of you and your passengers, regardless of who was responsible for the event. Medical expenses cover the medical care cost for the policyholder and his/her passengers in the accidental event. The limit you select under this coverage is the maximum which will be paid for medical claims.
Sometimes, maximum coverage can make sense, but often it’s not worth it. In this post, we’ll explain different types of coverage and may this will help you to figure out how much to carry of each type.