Motor insurance could be either comprehensive insurance or third party only insurance. From the coverage perspective, comprehensive insurance policies offer maximum protection to the insured than the third party liability cover.
Comprehensive insurance policy compensates the insurer for the damages caused to an external asset (like the other vehicles involved in an accident, assets belonging to the Government – like traffic signals, dividers etc and assets belonging to any third party), subject to the limits described in the policy document. Comprehensive insurance also protects and compensates the insurer’s own vehicle for any damages incurred, whether the vehicle is being driven or is parked.
Third Party insurance policy only protects the insurer for damages inflicted by the insurer on a third-party asset. It will not cover any damage to own vehicle.
There are other additional covers too that can be taken along with the motor policy, like co-passenger personal accident cover, personal accident cover for self / driver etc.
The premium payable for the different types of motor policy will vary based on several factors, some of which are as follows:
* Age & experience of the principal driver of the vehicle
* Area of coverage required
* Territory in which the vehicle is driven (On road or off road)
* If the vehicle is used for personal or business
* Number of drivers of the vehicle, their ages and experience
* Accident records of all drivers
* Make, model and year of the vehicle
* Place of registration
* Vehicle current value
* Prior insurance history
* Agency / non agency requirement.
* Rent a car requirement