If you are the owner of a car, you already know that it is mandatory to have a car insurance policy. It is mandated by the law to at least have a third-party motor insurance plan, as per the Motor Vehicles Act, 1988, to become legally eligible to ply your vehicle on road. Now when it comes to the renewal or purchase of car insurance, you have two options in hand - going with the law mandated third-party policy or opting for complete coverage.

There are two types of plans to choose from: Third Party Car Insurance and Comprehensive Car Insurance.

It is important to keep in mind that the third-party policy only takes care of the liability claims. It doesn't offer any coverage to your vehicle.

Now let's have a look at what each type of car insurance plan covers:

The liability only motor insurance policy covers the vehicle owner's legal liability claims to pay compensation for the followings:

• Death of a third party person due to an accident.
• Bodily injury of a third party
• Damage to any third party property.
• Cover third party legal liability in case of third party injury, death or property damage.
• Owner-driver personal accident coverage up to 15 lacs

Comprehensive car insurance is the best motor insurance plan that you should consider. The policy covers the following.

• Inundation, Flood, Typhoon, Hailstorm, Hurricane, Cyclone, Storm and Tempest
• Terrorist Act.
• Earthquake (Fire and Shock) Damage.
• Damage from Landslide/Rockslide
• Damage to your vehicle due to fire, self-ignition, lightning, explosion.
• Any damage or loss to the car while it is in transit through road, lift inland waterway, rail, elevator, air etc.
• Housebreaking, burglary, theft.
• Malicious Act.
• Accidental external means.
• Strike and riot.

Apart from the above-mentioned coverage for the two types of motor insurance plans, you should also know that there are some add-on covers, also known as additional covers that you can opt for.

If you choose to include an add-on cover, you will have to pay an additional premium along with the basic payable car insurance premium.

To build an additional layer of protection around your most cherished car, it is always advisable to shop around various add-on covers that your car insurance provider is offering at the time of the policy purchase or online renewal. You can click here for the instant renewal of your car insurance policy from the top insurance providers online.