Purchasing a new car insurance plan can be quite overwhelming, given the number of options available in the market today. There are two types of car insurance policies in India, these plans are offered by most, if not all general insurance companies. These are namely - third-party liabilities car insurance plan and comprehensive car insurance plan. 


It’s critical that you choose the right insurance plan for you to make sure that you’re adequately protected. In this article, we’ll take a look at some popular insurance plans so you can compare, contrast, and choose the right plan for you.

Third-Party Liabilities Insurance Policy

A third-party insurance plan is legally mandated in India. This policy plan covers the costs associated with damages caused to others during an accident or any other unforeseen event. Here are some of the key features of third-party insurance plans: 

  • Affordable - third-party insurance plans are often some of the most inexpensive policies available in the market 

  • Covers bodily injury and death - this plan covers both bodily injuries and death of third-party 

  • Covers property damage - any damages incurred to third-party vehicle or property will be covered 

  • Legally mandated - getting this policy means you’re on the right side of law as these plans are compulsory

Comprehensive Insurance Plan

A comprehensive insurance plan, as the name suggests, offers holistic coverage. It protects you against third-party liabilities and own-damages. Here are some of the key features of comprehensive insurance plans:

  • Third-party damages - comprehensive insurance plans cover third-party damages to both people and property 

  •  Accident cover - comprehensive insurance plans also generally cover vehicle collisions and other risk factors like man-made as well as natural disasters, theft, etc., 

  • Enhance your coverage - you can tailor your plan to suit your unique needs by purchases add-on riders, some popular options include Roadside Assistance, Engine Replacement, Nil Replacement, Nil Depreciation Cover

Benefits of Opting for a Comprehensive Insurance Plan

Here are some of the benefits of going for a comprehensive car insurance plan: 

  • It provides all-round protection for your car, yourself, and those around you 

  • You can benefit from Roadside Assistance, this facility can come in handy if you’re someone that travels a fair amount 

  • With a comprehensive car insurance plan, you’re sure to have a greater peace of mind, knowing that you’re protected against a number of different types of events 

  • Comprehensive car insurance plans also cover against theft and vandalism 

  • Comprehensive car insurance plans are also a great financial decision since they help protect your valuable car and also help reduce expenses related to repairs  

  • You can choose your preferred IDV, which is crucial in settling insurance claims 

FAQs on Types of Insurance Plans

What are the different types of car insurance plans that I can opt for?

When it comes to car insurance policy plans, you can either go for a third-party liabilities insurance plan or a comprehensive car insurance plan. 

What are the 5 types of car insurance coverage?

Here are the five types of car insurance coverages: 

  • Liability Coverage 

  • Collision Coverage 

  • Personal Injury Coverage 

  • Uninsured Motorist Protection 

  • Comprehensive Coverage

Which kind of car insurance plan should I get?

You should get a car insurance plan based on your needs and budget. However, it’s always a good idea to opt for a comprehensive car insurance plan as it offers all-round protection. 


What is a car insurance plan?

Here’s car insurance explained: it’s nothing but a contract between a car owner and an insurance company. In case the car or the car owner is affected by a covered event, then the insurer will cover the costs related to recovery. 


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