1. Third Party Liability Coverage: According to the Motor Vehicle Act 1988, it is mandatory to have third party insurance which covers the liabilities the insured party has to pay due to damage or injury occurred to any other individual by him/her. It refers to the minimum risks which are covered under the Auto Vehicles Act 1938. The insurance does not cover any damage being caused to one's own property.

2. Comprehensive Coverage: In addition to covering the damage done to third party in the form of injury, death or damage to vehicle, our own vehicle also get damaged; Driver and his co-passenger also get hurt during any accident or explosion or lighting etc. Hence it becomes important to have a comprehensive cover. Many plans also cover the towing charges, theft and burglary in such cases. The insured person can extend the policy for increasing the additional benefits like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. It is recommended to choose comprehensive plan as it covers maximum things and provide helpful benefits. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.

3. Collision Coverage: It covers the insured financially against damage of their own car. It pays the insured for damage caused by collision which is usually an accident. Damage or loss due to theft or vandalism is not included in collision coverage.

Car insurance is a necessity not only because of the law, but also because it provides the needful coverage in case of any loss that occurs due to theft, accident, fire, explosion, etc.

No claim bonus: In zero depreciation cover, you will get the original cost of the part and not the depreciated one from the insurer. Usually the companies offer this add on cover to those cars which are 2 to 3 years old. For taking advantage of this add on cover you have to pay an extra small amount apart from the basic premium. However, making small claims like dents and scratches will push up the premium amount when you renew it the following year and you will lose the no-claim bonus in the corresponding year.

Zero Depreciation cover: In addition to covering the damage done to third party in the form of injury, death or damage to vehicle, our own vehicle also get damaged; Driver and his co-passenger also get hurt during any accident or explosion or lighting etc. Hence it becomes important to have a comprehensive cover. Many plans also cover the towing charges, theft and burglary in such cases. The insured person can extend the policy for increasing the additional benefits like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. It is recommended to choose comprehensive plan as it covers maximum things and provide helpful benefits. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.

Roadside Assistance: This add on cover helps you, when you got stuck in unwanted situations. These can be emergency transport, daily allowances, assistance in case of a dead battery, taxi benefits, towing facilities, assistance if the fuel in the car runs out, freebies and many more.

Invoice cover: This add on helps in case of a complete loss of your car because of any damage caused by an accident. It comes with two benefits: One, the insurance company will pay the depreciated value of the car to the insured and Two, you will receive the amount that will assist you in buying a new car.

Replacement cover: This add on covers the expenses, if you lose the keys of your car and coverage for the procurement of new locks. Normally the insured will be able to take advantage of this plan once in the whole policy.

1. Driving without a valid driving license.

2. Accident caused as a result drink and drive or drugs etc.

3. Loss or damage if a policy is not in force.

4. Gradual wear and tear of car and its parts.

5. Damage to engine as a result of oil leakage.

6. Damage to vehicle as a result of not following the car manufacturer's guidelines.

Car insurance is a necessity not only because of the law, but also because it provides the needful coverage in case of any loss that occurs due to theft, accident, fire, explosion, etc.

1. City where a vehicle is registered: Cars in metropolitan cities have to pay higher premiums as the incidence of vehicle thefts and accidents is higher. Zone A=It includes cities like Delhi, Mumbai, Ahmadabad, Kolkata and Chennai Zone B= It covers rest of the country Premium rates are high in cities falling under Zone A as compared to Zone B.

2. Vehicle make and model and potential risk factors: For instance, some makes and models fare better in collisions than others so injuries to occupants and damage to the car would be less severe.

3. Year of Manufacture: This lets the insurance company assess its Insured Declared Value (IDV) that facilitates the underwriter to decide the annual premium for your car. (IDV or insured declared value is the maximum amount to be paid by an insurer at the time of a claim if the vehicle gets stolen or lost. It is the sum insured which is fixed at the commencement of the policy issuance).

4. CC (Cubic Capacity): The size of the engine plays an important role in deciding premium amount that you have to pay for a third party insurance cover. Premium would be same both in new and old vehicles because it is calculated on the size of an engine and not on the basis of its age. Engine capacity is not the criteria used for calculating premium rates for a comprehensive cover. You can find out cc of your vehicle’s engine from its registration paper.

5. CNG/LPG Fitted Car: Additional cushions you may consider such as cover for CNG/LPG kits, key replacement costs, road-side assistance etc. will increase your premium amount.

6. Zero Depreciation: The insurance premium amount will always be less if you haven't made any claims before.

7. Transfer your existing policy: If you are buying a new car and want to transfer your existing policy - there may be variation in premium rates and change in underwriting criteria for new vehicle.

8. Gender and profession: of the driver are also considered while determining the premium price.

9. Additional Covers: Additional benefits come with additional cost.

1. Service centre network: Ensure that the insurance provider has a strong presence in your region.

2. 24x7 Helpline: There should be a toll-free number where you can call in case of emergency and requirement of instant support.

3. Simplicity: of procedure of raising a claim.

4. Read all the documents carefully: Know what is covered and what is not. The customer just pays the amount which is not covered as part of the insurance claim and the rest of the transaction is cashless. However, it is good to check on the procedure of settlement beforehand.

5. No claim bonus: The insured is rewarded with discount on the renewal premium for every claim free year. It is cumulative and increases every year. It usually ranges from 10% to 50%. However, no car insurance is available for loss in the value of the car due to depreciation or damaged due to its use in unlawful activities or as a result of drunken driving. So it is important that one reads the terms and conditions of their car insurance policy carefully to know more about the instances when the damages to your car cannot be claimed.

6. Always renew your motor insurance before the due date to avoid the inconveniences such as vehicle inspection as well a potential increase in premium cost.

7. If your car has any safety feature like alarm, immobilizer then you can get a great discount.