In this video, we will discuss the important things people need to keep in mind while buying car insurance for the first time Car insurance has got two parts One is the third part liability

The third party insurance is compulsory in India Second part is the own damage part or the damage to one's own car When you buy both of insurance coverage, it is then called comprehensive policy or a package policy Irrespective of the age of the car, liability policy or third party policy is compulsory This policy is taken for any damage to any third person's property or injury or death of a third person On your behalf, compensation is paid to the third party by the insurance company The compensation amount is settled through the court of law If we are driving the vehicle, or it is being driven by our acquaintances or us, but with a valid licence and it meets with an accident, the damage is covered by it Insurance company provides the claim after deducting depreciation of the car depending on the age of the car For a new car one should take a package policy In the initial years, the depreciation is quite low There is not much difference among various auto insurance policies offered The difference in premium could at best be of a few hundred rupees Most of the policies seem to have the same features Insurance companies have now started offering zero depreciation or zero dep policies In these policies, they will not deduct any depreciation since it is the depreciation that hurts the most As a result, the premium will be slightly higher But in case of damage to your car, the extra premium will be more than compensated