Car insurance is a contract between you and your insurance company wherein the insurance company will cover you against financial losses occurring because of damages to the car. It is only applicable in situations where the damage has been caused either due to an accident, a natural calamity or any liability that could result because of an accident or theft.

Car insurance policies can be of two types:

1. Third Party/ Liability Only Insurance Policy

A Third Party or a Liability motor insurance cover is mandatory in India and you must ensure that you have it. This policy covers you financially in case you accidently damage others or their property in an accident.

2. Comprehensive Insurance Policy

A comprehensive insurance policy covers for you and your vehicle, along with the third party. It is advisable to go for a comprehensive motor insurance cover and save yourself from a financial dent in case of damage. Along with these basic covers, there are some additional benefits which are given to the customer by the motor insurance company. These are known as add on covers.

Some add on covers include:

24 x 7 Spot Assistance

If you're driving through a lonely road and you suddenly realize the tyre of your car is punctured. Your 24x7 spot assistance insurance cover can help you in this situation. If you opt for this cover, all you need to do is just need call on the toll free numbers and the motor insurance company will reach out to you and assist you. This add on covers offers facilities like towing, fuel assistance, accommodation and taxi benefits, and can be quite a blessing when you're stranded, in the middle of nowhere.

Engine Protector

Driving on a busy road when you suddenly find out that the engine of your car, has been damaged due to lubricating oil leakage or due to water seepage on a rainy day? Worry not! The engine protector cover will insure you against such incidents saving you from financial losses.

Lock and Key Replacement Cover

Imagine misplacing your keys accidently while you are running errands. You will not have to worry about arranging new set of keys, as this add on cover will indemnify the cost of replacement keys. This cover also pays for the new lock in case it is damaged. So now that you understand the importance of car insurance, do take a look at the best motor insurance plans available!