What does Car Insurance cover ? Best Car Insurance in India, April 2021

 Car Insurance has been heard then and now. Many of us didn't know what things are covered in this Insurance. Read the full article to know each and every detail and for the best car insurance quotes in India scroll to the bottom.

What does car insurance cover? atmtechofficial

What does Car Insurance Cover?

Car Insurance or Motor Insurance is mandatory by the Indian Government. Basic car insurance has to be there for driving on Indian roads. The coverage differs from company to company, following is the list of possible coverage:-

  1. Bodily Injury Liability - It covers claims body injuries that occurred during the accident.
  2. Property Damage Liability - It covers property damages to the third party such as another person's car.
  3. Medical payments - Payment is done to the policy owner and other passengers in the car.
  4. Uninsured and underinsured motorist coverage - This coverage protects you when the driver has no insurance or insufficient insurance. In most states, only bodily injuries but some allow property damage too.


What Physical Damage covers?

  • Covers losses to the car during a collision
  • Covers non-collision physical damage if the car is damaged in storm or windshield breaks, etc.

What is Comprehensive and Collision Insurance?

Comprehensive and collision insurance often go hand-in-hand, and together, they cover damage to your own vehicle. While neither type of coverage is required by law, you may be required to get comprehensive and collision insurance if you lease or loan your car.

Collision coverage covers damage to your car from a collision, no matter who was at fault. It pays for both direct and accidental damage or loss to your insured vehicle. That means damage to your car that happens during an accident with another car, such as a crash; or damage involving only your car, such as hitting a tree.

Collision insurance differs from the property damage liability component in that the latter is intended to pay for damage you cause to other peoples’ cars. Your collision insurance will not cover damage or injury inflicted upon other drivers.

Comprehensive coverage, which is often purchased alongside collision insurance, covers the kinds of damage that can happen to your car that aren’t a collision. That means events out of your control, such as extreme weather conditions, fire, falling objects, riots, vandalism, and animal damage. Comprehensive coverage, also called simply comp insurance, also pays you for your vehicle if it is stolen.

What does car insurance not cover?

Your car insurance coverage will be thoroughly spelled out and explained in your policy. The policy will tell you both what kinds of accidents and damage are covered as well as what isn’t. The following situations are not covered by auto insurance:

Regular repairs - Repairs that result from regular wear and tear are not covered by car insurance

Ridesharing - Some policies may differ, but your car insurance policy may exclude claims for damage caused while driving for fares. For that, you’ll need to speak to your insurer about adding rideshare coverage

Damage that exceeds your coverage limits - When you purchase car insurance, you’ll be allowed to choose how much coverage you get in each component. On the policy declarations page, a sheet that’s attached to the policy, your coverage in each component will be its limits of liability, meaning that the car insurance company is under no obligation to pay more than that amount

Exotic and performance cars - Exotic, performance, and vintage cars that are highly expensive to replace or repair are generally not by standard auto insurance companies. Check with your insurer to see whether you can get coverage for your Lamborghini, but you may find you have to shop at specialty insurers and get a separate policy entirely

So, What are the Best Car Insurance in India?


The insurance covers all the damages involving your own vehicle and also the third party. It also offers the advantage of receiving an accident cover for the proprietor of the car. Amongst all other car insurance policies available in India, Reliance has a very good offer from the customer’s point of view. It has about 2100 service stations in India and its 24×7 customer service centers are available to its users for any assistance. It offers one of the best third-party coverages and one of the best individual accident coverages up to 10 lakh and 5 lakhs respectively. The claim percentages of 107.49% show they have been outstanding in giving and settling the claims of their clients.


Some of its features include roadside assistance, 24×7 customer support, cashless claims present at 3100+ network garages along an option to buy the policy online. ICICI Lombard offers one of the top car insurances for its customers across India. It has added more than 3100 garages under its policy coverage which is excellent. If you wish for supplementary coverage you can choose additional covers that are accessible with this policy. The claiming percentage of 87.38% is an encouraging number which gives an obvious idea as to how good they are when involved in claim settlement.


HDFC Ergo Car Insurance is one more great insurance company that completely focuses on the client's needs and it offers some of the best returns in terms of benefits. The policy is based on the safety of the vehicle or any possible damage or death or injury of the passengers boarding it due to the accident. HDFC has a big system of garages that offers its services to the insured clients. The policy also covers the main portions of the accident and third-party coverage which is desirable in car insurance. Other than this you can also gain the add-on benefits like emergency assistance with a higher premium.


Tata AIG has some of the best insurance policies for its customers. They offer benefits to cater to both individual and corporate needs. The vehicle cover protects the individual from a lot of dangers on the road. It covers not just third-party liabilities but also damages arising from robbery or mishap. You also get options to increase your coverage by going for add-on benefits that come with the plan. Tata AIG offers up to 7.5 lakhs as its third-party insurance cover. The car insurance policy covers all the major areas including repair facility, claim settlement, enhanced protection as add-on covers, and more.

In India, it is mandatory to have car insurance. There are several factors to consider before choosing insurance like the coverage for personal injury as well as that of the vehicle, third party liability coverage, collision coverage, etc. So one must be sure to read the fine print while choosing one.

-by Amaan Attar

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