Finance

What Are the Types of Motor Insurance Plans Available?

Buying a new vehicle is followed by mandatory requirements of registration and opting for an insurance cover. An insurance cover for your motor vehicle works on similar fundamentals of a traditional insurance plan – to make good for the losses. This determines the emphasis on a motor insurance cover that makes it a regulatory norm as per the Motor Vehicles Act.

A motor insurance policy ensures you, along with others, remain safe in case of, god forbid, a mishap. This safety is in the form of financial protection offered via reimbursement for the damages or medical aid. Buying motor insurance online with the help of internet technology is a hassle-free process. You need to decide on your requirement, head over to the insurer’s website, select the plan with suitable add-ons and make payment; voila, you just insured your vehicle under minutes. While it may seem daunting at first, but once you are aware of the types of insurance plans, it is a cake-walk.

Let us understand the different policies that you can buy for your motor vehicle

Motor insurance is classified based on two criteria: type of vehicle and the type of coverage.

To begin with, let us look at the different insurance plans that you can buy based on the vehicle type –

Private Car Insurance

Car insurance is one of the mandatory things that you need to buy whether you purchase a new car or a used car. It acts like financial safety-net to protect against the steep cost of repairs in case of an accident or damage. These insurance covers ensure your beloved car, which is bought after countless hours of research and dilemma, gets adequate financial protection. There can be cases where a natural disaster sweeps human life and property, but an insurance plan will help you avert financial stress at such times. Your private car insurance is not limited to damages or losses caused due to natural disaster but includes human perils too. Apart from these dangers, damages and accidents along with theft and burglaries are also included in your insurance plan.

Commercial Vehicle Insurance

When vehicles facilitate the smooth functioning of your business, availing an insurance cover for them becomes crucial. Although they might have an end role in servicing your orders, it is the most critical to ensure timely delivery. For such situations, you do not want broken-down delivery vans or tempos that hamper the entire supply chain. Not only the delivery of orders, but the procurement of raw materials also depends on these motor vehicles. Carrier vans, trailers, taxis, three-wheeler rickshaws, buses, excavators, along with agricultural utility vehicles like tractors are included in a commercial vehicle insurance.

Two-Wheeler Insurance

Two wheeler insurance plans aid the rider as well as third-person in case of damage to life or property. It comes handy to cover the cost of repairs that otherwise may prove to be heavy on your pocket. Availing add-ons like 24 X 7 roadside assistance or a zero depreciation cover will increase the effectiveness of your insurance plan.

Now let’s move on to classification based on the type of insurance policy opted.

Third-Party Insurance

A minimum requirement as per the regulatory body is third-party motor insurance. This insurance plan ensures you are protected against the liability in case of damages or losses to another person. The premiums are economical in these policies.

Comprehensive Insurance

It overcomes the limitations of third-party insurance by providing a financial cover to the insured as well. It offers coverage in terms of damages to life and property to both, the policyholder and the third person.

Knowing the different types of insurance policies will help you in getting the right insurance policy for your motor vehicle. Stay insured and stay safe!

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