Types of Motor Insurance

Know the different types of motor insurance and the coverages offered. Check and buy motor insurance policies online.
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Types of Motor Insurance
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3 mins
08 August 2023

Motor insurance, also known as auto/vehicle insurance, provides coverage against damage or theft of a vehicle, as well as third-party liabilities. All vehicles must have at least third-party motor insurance at the time of purchase or registration. Read about the different types of motor insurance policies available and their features and benefits. Also, check the coverage details of these different types of motor insurance policies.

Features and benefits of motor insurance

Motor insurance policies provide several benefits to the policyholder, including:

  • Coverage against damage or loss of the vehicle due to accident or theft
  • Coverage against third-party liability for property damage or bodily injury
  • Personal accident insurance cover for the owner/driver of the vehicle
  • Flexibility to choose the level of coverage and premium based on the vehicle type and usage
  • Cashless claim settlement at network garages

Types of motor insurance policies

There are three main types of motor insurance policies, tailored to the different vehicle types:

Car insurance:

Car insurance is a type of motor insurance policy designed specifically for cars, including private cars, sedans, hatchbacks, and SUVs. This policy provides coverage against damage or loss of the car due to accidents, theft, or natural disasters. It also covers third-party liability for property damage or bodily injury.

Two-wheeler insurance:

Two-wheeler insurance secures two-wheelers like scooters, motorcycles, and mopeds against damage or loss due to accidents or theft. It also covers third-party liability for property damage or bodily injury. The policyholder can choose from different levels of coverage, including third-party only, third-party with fire and theft, and comprehensive coverage.

Commercial vehicle insurance:

Commercial vehicle insurance is a type of motor insurance policy designed for commercial vehicles like trucks, buses, and vans. Like the above insurance policies, this too provides coverage against damage or loss to the vehicle due to accident, theft, or natural disasters, as well as third-party liability.

Different types of coverage under motor insurance

Know about the different coverage types of motor insurance policies in detail.

Comprehensive insurance: Comprehensive insurance provides coverage against damage or loss to the vehicle due to accident, theft, or natural disasters, as well as third-party liability. It also covers personal accidents and injury to the policyholder and passengers. Additionally, it covers damages caused by riots and theft. You can also opt for add-on covers to enhance your vehicle insurance.

Third-party insurance: Third-party insurance is mandatory as per the Motor Vehicles Act. It provides coverage only against third-party liability for property damage or bodily injury. If the policyholder causes an accident resulting in damage to third-party property or bodily harm, the third-party insurance policy will cover the cost of repairs or medical expenses.

Own damage insurance: Own damage insurance covers the damages or losses caused to the insured vehicle only. It does not cover third-party liability. It covers damages caused by accidents, theft, fire, riots, or any other natural or manmade disasters.

Personal accident insurance: Personal accident insurance provides coverage for the owner/ driver of the vehicle in case of injury or death due to an accident. As per IRDAI, insurance companies must provide personal accident cover up to Rs. 15 lakh on the chosen vehicle insurance. It covers medical expenses and provides compensation in case of disability or death.

Add-on covers for different types of motor insurance

Policyholders can also choose to add various add-on covers to their motor insurance policies based on their requirements. Some popular add-on covers include:

No Claim Bonus (NCB) protection: This add-on cover protects the policyholder's NCB discount in case of a claim during the policy term.

Roadside assistance: This add-on cover provides 24x7 assistance in case of breakdown or emergency while driving.

Engine protection cover: This add-on cover provides coverage against damage or loss to the engine due to water, fire, or other natural disasters.

Steps to buy vehicle insurance online

Buy any type of motor insurance online with zero paperwork on Bajaj Finance Insurance Mall. Here is how you can buy vehicle insurance policies.

  • You simply need to fill up an application form by clicking on the ‘Get Quote’ button.
  • Enter your vehicle details such as vehicle type and registration number. Also, your mobile number and residential PIN code.
  • On proceeding, you will get the option to choose the IDV, NCB value, and add-on covers.
  • Choose any of the motor insurance policies as per your preference. Proceed by sharing a few necessary information.
  • You can then make the payment online through any of your preferred payment modes.

Steps to renew motor insurance online

Renewing any type of motor insurance policy has become easy and convenient. Here’s what you need to do for vehicle insurance renewal online.

  • Visit your insurer’s website.
  • Enter your vehicle registration number and proceed.
  • You need to choose the vehicle’s variant and fuel type.
  • Provide the details of your previous motor insurance policy.
  • Fill in your name, mobile number, and other personal details if asked.
  • Choose the policy tenure that you want and submit it to get the quote.
  • Make the payment online through any of your preferred modes.

Motor insurance is a crucial investment for every vehicle owner, providing financial coverage and peace of mind. The policyholder can choose from different comprehensive, third-party, and personal accident insurance policies based on their requirements and vehicle type. Additionally, policyholders can add various add-on covers to their policies for additional coverage and benefits.

Frequently asked questions

What type of insurance is motor insurance?

Motor insurance is a type of general insurance policy. It covers the cost of damage caused to a vehicle in the event of an accident or theft. It is mandatory for all drivers in India to have a valid motor insurance policy.

What is a vehicle insurance?

Vehicle insurance, also known as motor insurance, secures vehicle owners financially in case their vehicle gets damaged or stolen. It covers the cost of repairs, replacement, or any other expenses incurred due to an accident involving the vehicle.

What are the types of motor insurance claims?

There are two types of motor insurance claims - third-party claims and own damage claims. Third-party claims are filed when the insured vehicle has caused damage to a third-party person or property. Own damage claims are filed when the insured vehicle has been damaged due to an accident or other covered events.

Which are the two basic types of insurance?

The two basic types of insurance are life insurance and general insurance. Life insurance provides financial protection to the beneficiary in case of the death of the insured person. General insurance covers other aspects like health, travel, home, and vehicle insurance. Motor insurance falls under the category of general insurance.

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Disclaimer

Insurance is the subject matter of solicitation. *T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third-party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third-party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.

Note – While we have made all efforts and taken utmost care in gathering precise information about the products, features, benefits, etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective product’s sales brochures before concluding their sale.