Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

Types of vehicle insurance
There are two types of vehicle insurance:
■ Comprehensive
■ Third Party

Comprehensive Insurance
A Comprehensive Insurance cover insures the vehicle against any risk arising out of theft or damage to the vehicle, death of the driver and/or passengers in the vehicle during an accident, and damage caused by the vehicle to other people or property.

Coverage with Comprehensive Insurance
Comprehensive Insurance insures the vehicle against:
■ Natural calamities: E.g. Earthquakes, floods, typhoons, etc.
■ Man-made calamities: E.g. Burglary, thefts, riots, strikes, etc.
■ Personal accident cover: Provides personal accident cover for the individual owner-driver and passengers of the insured vehicle while travelling in, mounting, or dismounting from the vehicle.

Third Party Insurance
Third Party Insurance only covers the damage done by your vehicle to other vehicle or property. It does not cover accidents, theft or damage to the vehicle.

Coverage with Third Party Insurance
Third party legal liability cover protects you against legal liability arising due to accidental damages, such as:
■ Any permanent injury/death of a person.
■ Any damage caused to the property.
■ Caused while anyone is driving the insured vehicle.

Both kinds of insurance are valid for only a year. It needs to be renewed every year. The premium of the insurance is dependent on certain parameters like vehicle classification, value, etc.