What are the 3 Types of Car Insurance?
Car insurance is something that is very important and beneficial as well as essential by law. There are different types of car insurance available which actually makes the customer confused about which one to choose for their car. There are different requirements as well as the budgets of every customer. Thus, they have to select car insurance accordingly which suits their budget and fulfills their requirements as well. Thus, below described are the 3 types of car insurance which will make you clear about what type of car insurance you should opt for:
- Compulsory Third Party:
Basically, there are three types of parties which are involved in an accident. They are the policyholder, insurance companies and the damaged entity. CTP insurance provides you protection against claims for compensation if the driver kills or injures anyone in car insurance. This is the cheapest and most basic type of car insurance available. But CTP type insurance does not cover the cost of repair of your vehicle in case of an accident. Neither they involve the cases of stolen cars, damage due to a natural calamity or due to fire. Therefore, this type of insurance should only be preferred if you need a really cheap and basic type of car insurance since it is the most basic type of car insurance.
2. Comprehensive:
Comprehensive car insurance involves almost all types of claims and protection in case of a car accident. It also includes the compulsory CTP car insurance in it. This is the most preferable type of car insurance. Apart from that, the damages caused to the car due to a natural calamity as well as fire is also covered in it. This insurance involves the expenses from you as well as the other participants’ side. Only the part which it does not involve is when someone else apart from the policyholder is driving the car or when the policyholder is driving the car drunken. Else, this is the best as well as the costliest type of car insurance. Thus, you must know more about comprehensive car insurance and try your best to opt for it for your car.
3. Third-Party, Fire, and Theft:
Apart from getting the claim for someone’s damage in an accident, this type of policy provides you protection for fire as well as theft. Cars being theft is very common these days and hence this type of insurance is preferable to be on a safer side. Again, third party, fire, and theft insurance do not cover the expenses of your car repair after an accident.
Hence, the above discussed are the three types of car insurance. You must wisely choose the type of insurance for your car so that you get a good return in case of an accident. If possible, you must raise your budget for your car insurance since it prevents your pocket from being empty and giving a high expense of repair altogether.