Explore the Different Types of Motor Insurance Available in India

In the times where you have a variety of options available in terms of what and from whom to buy, decision-making becomes a cumbersome task. But things go even more difficult when you don’t know what all is being offered. This holds true for anything and everything.

So if you go up to buy a car insurance policy today, do you know what all types of vehicle insurance policies are being offered in the market? Well, you may be aware of one or two, but to choose the one which is best suited for you from all the various types of motor insurance policy offered, you should have a look at all that is being offered.

What are the Types of Motor Insurance Policies Based on Coverage?

In layman’s language, the damages that can be claimed under a particular car insurance policy are called coverage. Based on the coverage offered, there are five types of motor insurance policy available.

Third-Party Liability

This is the most basic type of motor insurance policy available. The premium under this policy is least among all other types and most affordable too. Apart from that, it is also mandatory to take at least a third-party insurance by law in India. This also makes it the most popular policy across all types of motor insurances. It offers protection against the liability of payment to be made by the owner to a third-party if an accident happens.

Comprehensive Policy

From the various types of car insurance & two wheeler insurance plans in the market, the most popular and chosen policy is the comprehensive policy that offers coverage not only towards third-party liabilities but also towards the payments to be made by the owner himself towards his own medical expenses and damages suffered by the vehicle. Moreover, it covers some other natural calamities like floods and events like a forest fire, among many others.

Own Damage Motor Insurance

As the name suggests, own damage is a type of motor vehicle insurance where the insurance company covers damages to your vehicle. This includes accidents, theft, fire or natural and man-made damages.

However, if your vehicle damages any third party, then your insurer will not cover the expenses. This is ideal for people who already have third-party liability insurance and want extra protection for their car.

Also Read: What is CPA Cover in Car Insurance? Meaning & Benefits

What are the Types of Motor Insurance Based on the Type of Vehicle Owned?

Commercial vehicle

The vehicles used for business and other commercial purposes have higher wear and tear and also have a higher chance of meeting with an accident not to say higher chances of getting damaged by various unfortunate events. Hence, a separate commercial vehicle insurance policy is required for such vehicles.

Private/ Personal vehicles

The vehicles used by anyone for personal purposes have an emotional value attached to them. Also, the usage of personal vehicles is much less as compared to commercial vehicles. Hence it needs a separate cover. If any vehicle is registered as to be used for private purposes and then during an accident was found to be used for commercial purposes, the claim will not be honored.

Bajaj General Insurance’s Private Car Package Policy is the best motor vehicle insurance in India. Enjoy up to 50% No Claim Bonus and affordable premiums starting from ₹2,094. Get a quote today!

What are the Types of Motor Insurance Policy Based on Policy Duration?

Annual policies

Generally, all the types of vehicle insurance are by annual default policies only, i.e., they are valid for one year from the date of commencement of the policy. They are to be renewed every year. The premium under such policies can be paid in one-shot or in installments.

Long-term policies

These policies have a duration of two to three years. Practically, it is not very much seen around. If the premium is received in one shot, it is to be distributed among all the years covered.

Also Read: Usage-Based Insurance in India

What is the Difference Between Own Damage vs Comprehensive vs Third-Party Motor Insurance Policy?

Are you wondering what is the difference between types of motor insurance? Understanding this makes it easier for you to choose the right type according to your needs. Here is a quick comparison table:

Worried about your car breaking down in the middle of the road? Get 24/7 roadside assistance from Bajaj General Insurance today!

Also Read: Private Car Own Damage Insurance: Meaning & Benefits

The Bottom Line

Understanding the types of motor insurance is the first step to securing your precious investment. Remember to browse through the policy wording of motor insurance before buying it, as it will give you a clear picture of the inclusions and exclusions. Make sure to download the Bajaj General app to get fast policy issuance and seamless support wherever you go!

Frequently asked questions

What are the add-ons available? Are they covered under any of these policies?

Add-ons are the additional covers available to any policy. The inclusions and exclusions are stated in the policy itself. You need to check and decide what add-ons to opt for.

Can we change the type of policy opted? If yes, when can we do so, and how?

Yes, you can change the type of policy you have opted for in your insurance. You can do it at the time of renewal, or you can simply terminate the old policy and buy a new one.

Can you choose add-ons in an ongoing policy?

Yes, you can add the add-ons to your policy at the time of vehicle insurance renewal. However, it is not possible to do it in the middle of the year.  

Which one should I choose between an own-damage policy and a comprehensive policy?

Depending on your individual needs, you have to choose one from the types of motor insurance. For example, if your car is older and you already have third-party coverage, opt for an own-damage policy. However, if your car is new, going for comprehensive coverage will be the right choice.

What kind of add-ons are available for motor insurance?

With Bajaj, you can get a great variety of add-on options. These include consumable expenses, zero depreciation cover, conveyance benefit, engine protector and Return to Invoice (RTI), among others.

* Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.