Similar to life insurance even in Auto insurance there are several featured products which is popularly called as ‘insurance schemes’. Each of these schemes covers different types of risks. Although the law prescribes that every vehicle should be covered by insurance, the type of insurance cover is by and large is left to your discretion. Therefore, your decision to choose from various Auto insurance types should be guided by the type of risks you want to cover.
Risks that need insurance cover:
Now, you will have to carefully consider the type of insurance cover needed by you. According to experts some of the risks that you ought to cover include injury caused to you, co passengers and third party. Similarly you must also consider issues relating to damage to the vehicle, damage to property or damage to the car. Interestingly, most of the Auto insurance types cover all these risks.
Hypothecation of vehicle:
If you have availed loan on your vehicle and hypothecated the vehicle to the bank, then the insurance company may stipulate the type of insurance required for the vehicle. Of course, this stipulation may vary from banks to banks.
Now take a look at some of the Auto insurance types and their exclusive features:
This is regarded as one of the most extensive form of insurance. This insurance covers risks like accidents caused by you either because of negligence or mechanical failure. This type of insurance policy covers damage to any other person’s property. It also covers risks like bodily injury caused either to you or to the co-passenger or to the third person. In the normal course it is suggested that higher the insurance coverage higher will be the benefits you derive in case of happening of the contingency. Of course, this policy will have marginally higher premium.
This type of policy covers damage caused to the vehicle either by collision or riot, fire as also natural calamities. In addition to this, it also covers the risk of theft of the vehicle
This kind of policy covers the risk of your vehicle being damaged because of collisions caused by some other vehicle. If you have availed loan for buying your vehicle, then normally the financial institution will require you to take this policy. In addition to this, many of the financial institution may also require you to cover the vehicle with a comprehensive insurance policy as well.
If you are injured in the accident of your car, then this insurance cover can be used for meeting medical expenses, hospitalization and so on. Some of the insurance companies even cover the risk of disability caused because of injury.
There could be instances of you get injured because of the accident by a motorist who has either not taken an insurance policy for the vehicle or has underinsured the vehicle. In such cases, the expenses on your hospitalization or medical treatment and other related expenses could be met with this type of insurance cover
Browse to know more:
You may browse any of the insurance companies for details of risks covered and other terms and conditions governing these insurance policies.