What are the different types of motor insurance policies?

It’s not as complicated as choosing from different kinds of cheese – but with so many different kinds of car insurances out there, it could be quite a task to choose the right type of policy. Understanding, at a basic level, the different kinds of policies will be extremely helpful to customers. Some of the more popular motor insurance policies in India, and an explanation of what they offer, are mentioned below.

Third party insurance

As the name suggests, these insurance policies cover the injury and damage to the property of a third party (the 1st party being the insurance company, and the 2nd being the insured). In simpler terms, in case you have an accident and happen to damage another person’s car, a third-party insurance will bear the costs to compensate for the losses of the other damaged car.

Own Damage cover

An ‘own damage’ covers loss or damage only to the vehicle insured, due to accidents including fire, car-napping, vandalism, theft, damages while driving such as fires or external explosions, and other damages to your car while in transit.

Comprehensive insurance aka Standard Cover

Basically, a comprehensive insurance cover is the combination of an own damage cover and a third-party insurance.

In this kind of insurance, the insurance company bears the losses related to third-party damage – to a large extent. Moreover, this kind of insurance also bears the expenses for losses or damages to the insured person’s vehicle, and injuries to the owner of the vehicle due to the accident.

Comprehensive insurance policies may also bear the expenses for losses or damages to your car in case of theft, natural calamities, riots, fires, and terrorist activities. The wide range of calamities that this insurance policy covers makes it a very valuable insurance policy to have. Not to mention, it offers a comprehensive peace of mind!

Digit Insurance offers two different covers, Standard Cover (this includes both Third-party and Own Damage) and Third-Party Liability Only. What’s also great about the covers offered by Digit, is that a lot of aspects are customizable – for example, you can reduce your IDV, and get further discounts by sharing details like your PAN Card.