What is motor insurance and its types?

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are mandatory and some are optional.

What is motor insurance and types?

Motor Insurance deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. … It provides accident cover for individual owners of the vehicles while driving and also for passengers and third-party legal liability.

What are the 3 types of motor insurance?

There are three main types of car insurance:

  • Third-party.
  • Third-party, fire and theft.
  • Comprehensive.

What are the types of motor insurance policies?

Types of Motor Insurance Policy

Comprehensive motor insurance policy: This type of motor insurance policy covers both own damage of insured vehicle as well as third party cover. This policy applies to all the motor bikes, scooters, private cars, and commercial vehicles.

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What is meant by motor insurance?

A motor insurance policy offers coverage to the insured vehicle against financial losses due to an accident or one resulting from other damages. … A comprehensive motor insurance policy covers damages to third-party and third-party property along with compensating for own losses as well. Let’s learn more.

How many types of motor policy are there?

Amount of insurance coverage – Motor insurance plans can be divided into three types based on the amount of insurance protection offered: Third-party liability insurance – This is the most basic form of car insurance and hence, it is also the cheapest.

What are the types of motor vehicles?

For legal purpose, motor vehicles are often identified within a number of vehicle classes including cars, buses, motorcycles, off-road vehicles, light trucks and regular trucks. These classifications vary according to the legal codes of each country.

What are 4 main types of coverage and insurance?

Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have. Always check with your employer first for available coverage.

What are the 2 main types of car insurance?

The two main types of car insurance policies are liability-only and full coverage. While liability-only policies just have bodily injury and property damage liability insurance, full coverage includes comprehensive and collision insurance in addition to state-minimum coverage.

What are the five types of vehicle insurance?

5 Types of Car Insurance Coverage Explained

  • Liability Insurance.
  • Collision Coverage.
  • Comprehensive Coverage.
  • Personal Injury Protection.
  • Uninsured /Underinsured Motorist Protection.
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What are the 6 types of auto insurance?

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection.

What is motor insurance India?

Motor Insurance is a type of insurance policy which covers your vehicles from potential risks financially. Policyholder’s car or two wheeler is provided financial security against damages arising out of accidents and other threats. In India, motor insurance is mandatory.

What is the importance of motor insurance?

A motor insurance plan financially protects you against exorbitant medical costs. It covers all hospitalization expenses, thus allowing you to focus on speedy recovery, instead of worrying about finance. According to the Motor Vehicles Act, it is mandatory to purchase a third-party liability insurance policy in India.