Car Insurance In India And Policy Types While opting for car insurance in India, people might come across a problem of deciding among the best options. With a constant elevation in the Indian automotive industry, there have been a considerable number of schemes and policies launched by the concerned insurance unions. A car insurance policy covers the expenses of the damages or the theft in accordance with the type of scheme opted by an individual. As per the rules and regulations of the Indian government, car insurance policy is mandatory for every model, be it new or used. Such a policy at least ensures to cover the minimum damage, which can be caused to one's own car or other vehicles in case of collision. In general, there are two types of car insurance in India that can be summarised as follows:
Car insurance in india and policy types Liability Only Policy or Third-party Insurance: This type of car insurance policy covers the damages occurred to a third-party in any adverse condition. It is mandatory as per the Indian law for every vehicle to have a third-party insurance policy so as to at least cover the expenses of injuries caused by one's car to another person or vehicle. In this policy, the premium is calculated on the basis of the engine capacity of the car an individual drives. Since there are only third-party damage cover in the policy, therefore, its premium amounts to much less as against the full coverage policy. Package Policy or Comprehensive Insurance: This type of car insurance online completely differentiates from the third-party insurance, and covers the damage expensed caused to others as well as the vehicle owner. The damage covers and medical expenditure in case of an unexpected occurrence are covered in this policy for both the parties. Furthermore, the exclusivity of this policy is that it also covers the damages caused to one's vehicle in case of a natural calamity. The premium in this type of insurance is calculated according to the insured value of a person's automobile. Since, the expenses covered are for both the parties, the premium of this type of policy is generally high. In case a person opts for new models, he/she would like to opt for car finance as well as insurance instantly so as to prevent the excess money being shed from their pocket. New cars these days are available with lucrative insurance scheme but people are always in a bid to reduce their premium. To do the same, they can decide on the following aspects before choosing an insurance plan:

In case people buying new cars decide to get them financed, then they should first analyse their expenses to know if they are able to pay extra premium or a minimum amount for the insurance.