Describe the five types of auto insurance coverage

Auto insurance coverage is an important concept to understand when purchasing auto insurance. People drive their cars to go to work, to go shopping with their families, to have fun, and to enjoy time with friends. As a responsible car owner, keep your car in good conditions, follow road rules, and practice good driver etiquette. So, I would like to make it so that I don't have to worry about driving a car. But despite your vigilance, your car can run into unexpected situations. This includes major or minor accidents, breakdowns, tire bursts, natural/man-made disasters, etc.

The best solution to freedom from financial worries in these situations is car insurance. Under all types of car insurance, protection is provided involving against financial losses arising from unfortunate incidents the car, subject to the specific terms and conditions of the policy.

If your car gets into an accident, you should focus on recovering from the trauma and not worry about the financial consequences. In order to get through such episodes without feeling the slightest bit of anxiety, it is important to always have adequate car insurance.

What are the 5 types of car insurance coverage in India?

Insurance coverage refers to the type of protection available. In addition to the basic coverage of the policy, you can choose various add-ons to increase your protection under the policy. First, let us introduce you to the five types of car insurance coverage available in India.

1. Third party liability limited cover

This type of auto insurance coverage offers the following benefits:

- Costs of repair/replacement of third party's vehicle
- Hospitalization and treatment costs of third party
- Liability arising from death of third party
According to the Indian Road Traffic Act, a third party's motor vehicle is required to be driven on public roads. Insurance coverage is required. The amount insured must be high enough depending on your driving conditions and set to avoid out-of-pocket payments.

2. Collision Damage or Own Damage (OD) Cover

If you choose collision damage auto insurance coverage, you will be reimbursed for the cost of repairing your damaged vehicle. To determine the cost of collision damage coverage, their age and insurance statement value are taken into account to calculate the premium. IDV is based on the vehicle's market value.

When a claim is made under a collision coverage policy, the maximum amount payable under the policy is given by the IDV less accumulated depreciation. If you purchased your vehicle on loan, you must have collision cover.

What you need to know about car insurance: For safe driving and protection - myinsurance blog

3.Personal injury cover:

If you want to be reimbursed for medical expenses after an accident, in other words, to protect yourself as the owner-driver of the car, you rely on personal accident auto insurance coverage.

4.Zero depreciation insurance:

This coverage is commonly offered as an add-on to car insurance policies in India. If your vehicle is damaged and parts need to be replaced, your insurance company will take into account the depreciated value of the parts for claim processing. Selecting zero depreciation cover allows you to receive the full invoice amount without taking into account depreciation of parts.

5. Comprehensive car insurance:

This type of coverage covers third party liability, damage to your own vehicle, personal accident cover, and coverage for things like storms, floods, fire, theft, etc.

Provides the highest level of protection, including non-collision damage. Comprehensive car insurance policies can be further enhanced with a variety of add-on options.

Types of Car Insurance Policies Offered by TATA AIG
At Tata AIG, your needs for protection and convenience are paramount. Our car insurance policies offer a variety of features that can be customized to your specific requirements. Tata AIG offers three types of policies:

- Comprehensive car insurance policy

Comprehensive car insurance is the most comprehensive policy type, covering not only third party liability but also your own damage costs and losses such as theft and natural disasters. If your vehicle is stolen or damaged beyond repair, you can receive IDV or gross market value.

- Single self-injury auto insurance policy

This policy deals with self-damage, ie, the loss of the insured's vehicle. This does not provide third party auto insurance coverage. This type of policy is valid from September 2018.

- Single Third Party Auto Insurance Policy

This is a basic policy and required for driving on public roads. Includes damage to a third party's vehicle, injury to a third party, medical expenses, and death of a third party.

Add-on Riders for TATA AIG Comprehensive Motor Insurance Policy
We offer 12 add-on benefits to enhance your coverage and extend your protection under the policy.

1. No Claim Bonus Protection: Generally, if you do not make a claim under the policy, you will be eligible for NCB discount at renewal. This add-on cover allows you to maintain your NCB discount while still being able to file a specified number of claims.

2. Zero Depreciation Cover: If you select the zero depreciation add-on, the full insured amount will be paid without deducting the depreciation of the parts.

3. The difference in the billed amount after billing processing will be returned to the billed amount at the time of purchase.

4. Roadside Assistance Cover: Get 24-hour towing and emergency mechanic service in the event of a breakdown.

5. Repair Cover for Glass, Textile and Plastic Parts: Repair costs for glass, textile and plastic parts will be reimbursed. Claims due to this car insurance add-on do not affect NCB. However, you are only allowed to claim once per policy year.

6. Per Diem Coverage: Reimburses the cost of other transportation until your vehicle is repaired and back on the road.

7. Emergency transportation and hotel expenses cover: If you are stranded after an accident, you can use this addon to receive accommodation and transportation expenses to reach the nearest city.

8. Key Replacement Cover: This add-on allows you to replace your keys if you lose them or find your stolen car.

9. Engine Secure: If you live in an area prone to flooding or waterlogging, you need to protect your engine. Select this add-on to your comprehensive car insurance policy to have your engine repaired at no additional cost.

10. Tire Secure: Reimburse the cost of repairing your damaged tire or tube.

11. Consumables Expenses: If you need to replace consumables like air conditioner gas, gearbox oil, oil filter, etc. after an accident, this add-on will cover your expenses.

12. Loss of personal belongings: This add-on helps you lose personal belongings such as video tapes, CDs, clothing, etc.

It covers the loss of your belongings and excludes items such as credit/debit cards, jewellery, money and watches.

Conclusion
Knowing the different coverages available will help you choose the right policy and useful add-on riders. For all-round protection, easy claims processing and round-the-clock customer support, rely on Tata AIG Auto Insurance. You can use our online car insurance calculator to see the total premium outflow for your chosen policy.