• Insurance coverage refers to the kinds of protection available. In addition to basic coverage under the policy, you can choose a number of add-ons to enhance its protection. Let us first show you the five types of car insurance coverage available in India:

Third-Party Liability Only Cover

Third-party car insurance is a basic policy ideal for older cars, low-usage vehicles, or anyone who wants only mandatory protection without extra add-ons. The IRDAI regulates the premium for this insurance, which remains fixed based on the vehicle category and engine capacity. Under this type of car insurance coverage, you will get the following benefits:

• Cost of repairs/replacement of the damaged vehicle of third parties.
• Legal liabilities, including court and lawyer fees.
• Cost of hospitalisation and treatment of third parties.
• Liabilities arising out of the death of third parties.
• This type of policy is a low-premium option.

According to the Motor Vehicles Act, third-party car insurance coverage is a must to drive on the roads. IRDAI has also mandated a 3-year policy duration for new vehicles. The sum assured should be according to the driving conditions and sufficiently high to avoid out-of-pocket payments from your side.

Collision Damage or Own Damage (OD) Cover

When you opt for own damage car insurance coverage, the cost of repairs to your vehicle that has been damaged is reimbursed. This coverage reimburses repair or replacement costs if your car is damaged due to:

• Road accidents and sudden collisions
• Transit activity via inland, rail, waterway, and road.
• Self-ignition, explosion, lightning, or fire.
• Typhoon, storm, flood, hurricane, earthquake, or tempest.

You cannot purchase OD cover alone. It must be paired with a valid third-party liability policy. However, if you already have third-party insurance, OD cover is an excellent optional upgrade for better protection.

To calculate the premium for collision coverage insurance, the age and Insured Declared Value are taken into account. The IDV is based on the vehicle's market value.

When a claim is lodged under an own-coverage policy, the maximum amount payable under the policy is the IDV minus accumulated depreciation. If you have purchased your vehicle on a loan, you should hold collision cover.

Here are the benefits you get with Own Damage (OD) Cover insurance:

• Provides your car with protection against unexpected events, including accidents, theft, vandalism, and natural disasters such as floods and earthquakes.
• Lets you customise your policy with useful add-ons such as Zero Depreciation, Engine Protection, or NCB safeguard, based on your needs.
• You can avoid hefty repair bills and provide the full Insured Declared Value (IDV) if the car is stolen or damaged beyond repair.

You can also personalise your OD policy with useful add-ons, such as Zero Depreciation, Return to Invoice, No Claim Bonus Protection, Loss of Personal Belongings and Key Replacement.

Comprehensive Car Insurance

Among the different types of car insurance, Comprehensive car insurance provides the most extensive protection. It covers third-party liabilities, own vehicle damage, natural disasters, theft, and even personal accident cover.

You can enhance it with add-ons such as zero-depreciation car insurance, Consumables Cover, Personal Accident coverage, Roadside Assistance, and more. It is one of the most popular types of vehicle insurance in India for vehicle owners.

Here are some of the instances that are covered in a comprehensive car Insurance plan:

• Your car stays protected from natural disasters like floods, earthquakes, cyclones, and similar events.
• If your vehicle is stolen or damaged beyond repair, the policy will pay the full IDV amount.
• Repairs after an accident, whether minor scratches or major damage, are covered as per the policy terms.
• Damage caused due to riots, strikes, vandalism, terrorism, or fire-related incidents is also covered.
• You also get Personal Accident Cover of up to ₹15 lakhs, with an option to extend protection to passengers if needed.
• It includes the mandatory third-party liability cover to protect you if someone else or their property is affected in an accident.
• If your vehicle gets damaged while being transported by road, rail, air, or water, the insurance helps cover the cost.

Personal Accident Cover

A Personal Accident Cover pays the owner-driver in the event of injury, disability, or death resulting from a road accident. It does not cover medical bills but provides a fixed lump sum amount in the event of death or specific disabilities.

When comparing various car insurance types in India, ensure that this feature is available, as it is compulsory for owner-drivers. If you already have a Personal Accident policy with coverage of ₹15 lakhs, you do not need to buy it again with your motor insurance. Likewise, if your current car or two-wheeler policy already includes PA cover, you are not required to purchase a new one when you insure another vehicle.

TATA AIG also offers an additional personal accident coverage add-on. This provides additional financial protection beyond the standard coverage.

Zero Depreciation Insurance

Zero depreciation car insurance is an add-on that guarantees you can claim the full amount for parts of your vehicle being replaced, with no depreciation. You can avail this add-on for vehicles up to 7–10 years old.

This add-on provides substantial financial relief during claims, and you must check this out before your next vehicle insurance renewal. The following are the most important benefits of this insurance:

• Your car will retain a higher resale value because repairs use high-quality parts rather than cheaper alternatives.
• Covers important parts like bumpers, headlights, mirrors, and plastic or rubber components without reducing their value due to age.
• You do not have to pay extra during repairs by covering depreciation, so most of the cost is covered.
• The claim process becomes smoother when you receive the full repair amount rather than a reduced payout.

Also Read: 5 Key Benefits of Car Insurance - Secure Your Vehicle Today

• No Claim Bonus Protection: In general, if you do not lodge a claim under your policy, you become eligible for NCB deduction at the time of renewal. With this add-on cover, you can lodge a predefined number of claims while retaining the NCB discount.
• Zero Depreciation Cover: Zero Depreciation Cover ensures your claim is not reduced due to the vehicle's age or the replacement of specific parts. So, if something happens to your car, you get the maximum payout.
• Return to Invoice Cover: If your car is stolen or completely wrecked, you will receive a full refund of the amount you originally paid, including taxes and registration. It is like getting a do-over.
• Roadside Assistance Cover: You can get round-the-clock breakdown assistance for towing or emergency mechanic services.
• Repair of Glass, Fibre, and Plastic Parts: You will be reimbursed for repair costs for glass, fibre, and plastic parts. The claim under this car insurance add-on does not affect your NCB. However, only one claim is allowed per policy year.
• Daily Allowance Cover: You will get reimbursement for the cost of other modes of transport until your vehicle is repaired and ready for the road again.
• Emergency Transport and Hotel Expenses Cover: When you are stranded after an accident, you can get expenses of overnight accommodation and travel expenses to reach the city closest to your destination with this add-on.
• Key Replacement Cover: With this add-on, you can get the keys replaced if you have lost them or when your stolen car is recovered.
• Engine Secure: If you live in an area prone to flooding or waterlogging, your engine should be protected. If you choose this add-on to your comprehensive car insurance policy, you can repair the engine without incurring additional expenses from your pocket.
• Tyre Secure: When you repair a damaged tyre or tube, this add-on will reimburse the costs.
• Consumables Expenses: When you replace air conditioner gas, gearbox oil, the oil filter, and other consumables after an accident, this add-on will cover the costs.
• Loss of Personal Belongings: This add-on, with comprehensive car insurance coverage, helps cover the loss of personal belongings such as videotapes, CDs, clothes, etc., but excludes credit/debit cards, jewellery, money, watches, etc.
• Reinstate Cover: Helps fix even minor damage when you claim them along with other valid claims.
• Emergency Medical Expenses: This covers immediate medical care for you and your passengers right after an accident, before insurance paperwork even starts.
• Electric Surge Cover: For EV owners, it protects your expensive battery and motor from electrical damage. EVs are different beasts, and this keeps them safe.
• Additional Towing Charges: Sometimes, basic towing is not enough. If your car needs long-distance transport, this covers the extra cost.
• Additional Third-Party Property Damage: This add-on increases the limit of third-party cover if you accidentally damage someone else's property, such as a car or a shopfront.
• Misfuelling Cover: Mistaking between petrol and diesel cars happens more than you would think. This pays for the cleanup and any damage caused.
• Vehicle Loan Protector: If something terrible happens to the insurance holder, permanent disability or death, this add-on clears their outstanding car loan, so their family is not burdened.
• Pay as You Drive: If you barely use your car, there is no point in paying the full insurance premium. This add-on helps you pay a premium based on actual kilometres driven.

Private Car Insurance

If you use your car for personal travel, such as commuting to work or taking weekend trips, this insurance is for you. It protects your car against accidental damage, theft, fire, and natural disasters. It also includes the legally required third-party cover.

While a basic plan keeps you compliant with the law, a comprehensive or own-damage plan gives you better protection. Just remember the claims will not apply in cases such as drunk driving, lack of a licence, or using the car for commercial purposes.

Commercial Vehicle Insurance

This type of commercial insurance is for vehicles used for business, like trucks, taxis, buses, delivery vans, ambulances, or auto-rickshaws. It helps cover repair costs, legal liabilities, and accident-related expenses, so business operations are not interrupted. While it offers broad coverage, normal wear and tear or misuse is not covered.

Financial Protection Against Accidents and Damages

Accidents happen, even when you are being super careful. Car insurance is there to save you when things go wrong. Third-party liability covers you if you damage someone else's property or cause an injury.

Comprehensive plans go even further, protecting you against theft, vandalism, floods, storms, and damage to your own car. If you do not have insurance, even a small fender bender could drain your savings in a flash.

Helps You During Legal Disputes

Accidents often lead to legal headaches such as court dates, lawyer fees, and mountains of paperwork. Your insurance does not just pay for this stuff, it actually provides legal support, so you are not figuring it all out alone.

Essential Coverage for New Cars

If you just buy a shiny new car, you must protect that investment. Comprehensive insurance with bumper-to-bumper coverage means repairs will bring your car back to perfect condition. This is especially important for luxury cars, where even small parts cost a fortune.

Customisable Add-Ons

Modern policies offer flexible add-ons to match your needs. Roadside assistance gets you help when your car breaks down. In contrast, zero depreciation car insurance coverages gives you the maximum claim payouts without accounting for wear and tear. Additionally, engine protection covers costly mechanical failures. You can tailor your policy to fit your driving habits and concerns.

Convenient Cashless Repairs

There are network garages where you just show your policy, and they handle everything. You do not have to pay anything upfront or chase refunds. Just drop off your car and pick it up once it is fixed.

• Choose Coverage Based on Your Lifestyle: Make sure the policy protects both your car and any third-party damage. A plan that lets you customise coverage is always a plus.
• Start by Comparing Policies: Take a little time to look at different plans side by side. This helps you understand what you are getting, ensures you choose one that fits your needs, and prevents you from choosing the cheapest option.
• Check the Quality of Customer Support: Good customer service makes a huge difference, especially during a claim. If 24/7 support is available, it is ideal.
• Look for No Claim Bonus Benefits: If you are a careful driver, pick a plan that rewards you with lower premiums for claim-free years.
• Make Sure Renewals are Simple: Choose a policy that is easy to renew so your coverage stays active without any problem.
• Review the Claim Settlement Ratio: A higher ratio indicates the insurer settles most claims filed by customers.
• See What Add-ons Are Available: Extras such as zero depreciation, roadside assistance, or engine protection can strengthen your policy.

Also Read: Car Insurance Renewal in India: Documents Required

Due to traffic congestion and the increasing incidents of accidents on the roads, it has become necessary to purchase car insurance. Additionally, having a third-party insurance is mandatory by law in India. However, having an understanding of the right type of coverage can make a world of difference when you want to get the best car insurance in India.

With TATA AIG car insurance, you are not just buying a policy, you are also investing in dependable support and quality service. Our car insurance online gives you access to instant quotes, quick plan comparisons, paperless buying and renewal, and hassle-free claims. Additionally, you enjoy cashless repairs at our nationwide network of garages.