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12 Best Car Insurance Covers You Can Get in 2022

Team AckoOct 14, 2022

Having car insurance can help you avoid financial losses that occur when you are involved in a car accident. Without one, you might be liable for accidental damages and injuries. Thankfully, there are various types of car insurance coverage available in India.

You can choose a reliable car insurance cover to protect your car and yourself from financial and physical damages.  

Best Car Insurance Covers You Can Get in 2022

But which car insurance cover should you choose? It may be a tough choice to make. Look no further, as this article discusses different types of car insurance coverage.

We have covered the most common insurance cover to help you pick the suitable one. So, keep reading on, and understand which insurance coverage suits you the best.

Contents

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Top 12 Types of Car Insurance Coverage

1. Liability Coverage

According to the Motor Vehicles Act, getting third-party car insurance coverage is compulsory. It's a legal compulsion and also saves you from financial disaster. For example, if a car accident occurs from your side, damages third-party property, and causes an injury to a person; in that case, your car liability insurance cover comes to save you.

It pays the mentioned amount as the cost of medical bills and repairs. It is one of the must-have car insurance covers these days. Also, if you also own a car and want to drive on roads, the traffic police will ask you to show this insurance cover.  

2. Collision Insurance

Collision damage (insurance) is also known as own damage cover. It provides the cost of repair for your car that gets damaged in a car accident. The insurer uses the vehicle age and the insured declared value to decide the premium amount.

Generally, the IDV is based on the market price of the insured car. Also, the amount of maximum damage repair is paid after deducting depreciation. This car insurance is recommended for those who mostly buy a car on loan. 

3. Comprehensive Insurance

Comprehensive insurance coverage is considered one of the most secure car insurance covers. It includes third-party liabilities, damage to the owned vehicle, and personal accidental cover.

In addition, it can also include non-collision damage like flood, fire, and theft. Insurance providers also allow the user to make some possible add-ons. Thus, if you have sufficient budget to make yourself and your car secure, it's a good car insurance cover to get. 

4. Uninsured & Underinsured Motorist Insurance

This is one of the most valuable types of car insurance coverage explained here. It is because if you are hit by a car driver who does not have insurance. In that case, uninsured insurance covers paying for your medical or repair bills.

In contrast, if you are hit by a driver having insurance cover but not enough to meet your medical expenses, that's the condition where underinsured cover helps you pay medical charges.  

5. Gap Insurance Cover

New vehicles often decrease their value based on distance coverage and other factors. Due to depreciation, the loan amount can be high, and your insurer pays only for the car's market value.

It is where gap insurance cover comes to help you. It covers the difference between the loan amount and the vehicle's value after depreciation.  

6. Roadside Assistance Coverage

Roadside assistance coverage is also called towing or emergency roadside cover. It's the optional type of car insurance cover that many car owners use, if their car gets stopped on the roadside, needs a tire change, or any other repair.

This insurance coverage pays the bill for up to the coverage limit. Although, the insurer can ask you to get the service from classified technicians. So, it's one of the optional types of car insurance coverage that we explained here. 

7. Rental Car Coverage

You can get this car insurance cover as an add-on to your comprehensive or collision coverage. Generally, a rental car cover pays the bill of the rental vehicle you drive. It's the case when you have a car but cannot drive it due to technical or other issues.

Hence, this insurance cover provides you with the facility to get a rental car and commute easily. In exchange, it pays your car rental bill at the mentioned limit. Also, you can have many packages to choose from under this cover.

So, always choose the best insurance cover that fits your pocket and gives the best benefits.  

8. Property Damage Liability

Many times you might have seen the person hit a home or shop. For this, they must pay damages and fines based on the law. If you also own a car and drive it regularly and want to avoid such a situation.

You can get property damage liability if it does not come in your comprehensive cover. It will cover damages like fences, buildings, lamp posts, and even mailboxes. However, remember that this insurance cover does not cover your property. To get this facility, you need to get collision insurance coverage.  

9. Personal Injury Protection

Personal Injury Protection (PIP) is an excellent car insurance policy. It covers you and anyone driving your car and causing injuries. It does not count who caused the accident or other factors if you or the person driving a vehicle has got injuries.

This insurance cover will cover the medical bill and other mentioned expenses. However, if you live in an at-fault state, it might not be legally required to have car insurance. But you can consider it as protection for you and your loved ones.  

10. Third-Party Cover

Having a third-party cover seems essential these days. It's a necessary part of the car insurance policy. Also, it covers any injury or death of a third party due to a car accident. The third-party cover also includes any damage to third-party property. Somehow, it also helps you with the legal obligation of a car accident.

Thus, if you don't want to end up paying for third-party injury and property damages. It's good to get this car insurance policy and save yourself. Although, it also has the drawback of not protecting your injuries and your vehicle's damage. In short, it does not cover own vehicle damage and injuries or death. 

11. New Car Replacement Cover

Your insurance provider may recommend it as an optional car insurance cover. It is because newly purchased cars depreciate quickly. And when you need to buy a new car and replace the old one. You will not be able to get enough claims until you have this insurance. This car insurance cover is designed to pay the amount of the difference between the vehicle's value and the cost of purchasing a new car. So, if you think you might be replacing your vehicle in the future, you can consider it.  

12. Medical Payment Cover

It is also a common type of car insurance coverage. If you insure your car under medical payment coverage, and your passenger or family members get injured, then in that case; you can claim the medical payments under this insurance cover. This insurance policy covers hospital visits, surgery, medical checkup, and other expenses. 

Conclusion

Meeting with a car accident can be costly, not for you but also for others. Hence, to fulfill legal obligations and personal security, you must get car insurance. This article explained the top 10 common types of car insurance coverage.

Thus, we hope you have a clear idea of the significant types of car insurance. So, get the best car insurance coverage that fits the budget and gives maximum protection. Furthermore, do not forget to understand policy terms and how they can be beneficial.

Frequently asked questions

Here are answers to some of the frequently asked questions regarding car insurance coverage

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Q1. What is the Liability Insurance Coverage?

This car insurance coverage provides car accident damages due to your actions. This insurance coverage pays for the property damage and the person's medical bills.  

Q2. What is the Car Insurance that Covers Everything?

Liability insurance and comprehensive car insurance covers are great. These two are major car insurance covers that cover most aspects. You can refer to these car insurance covers if you also need one.  

Q3. Is Getting Car Insurance Compulsory?

According to the Motor Vehicle Act 1988, it's compulsory to get car insurance. So, whenever you own a car on loan or lease, it requires getting third-party insurance.  

Q4. Which Car Insurance is Compulsory?

Liability coverage is one of the compulsory car insurance policies. It's the third-party insurance cover that saves you from financial burden. Also, it pays for the damages and injuries caused by your car.

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