Car Insurance Types (2025): Third-Party vs Comprehensive, Add-ons & How to Choose
Understand car insurance types, what each policy covers, popular add-ons, and what to check before buying. Updated for 2025.
Car insurance in plain words
Car insurance protects you against financial losses from accidents, damage, theft, and third-party liabilities. Different policy types cover different risks.
Choosing the right policy is about balancing legal requirements, your risk exposure, and budget. This guide explains the most common car insurance types and add-ons.
Main Types of Car Insurance
Third-party liability
Covers damages/injury to a third party. Often legally required, but does not cover your own car’s damage.
Comprehensive
Covers third-party liability plus own-damage (accident, theft, fire, etc.). Generally a better overall protection.
Own-damage (OD) cover
Covers damage to your own vehicle. In some cases, it’s purchased alongside separate third-party coverage.
Tip
If your car is new or valuable, comprehensive cover usually provides better peace of mind.
Popular Add-ons (Optional)
- Zero depreciation: Higher claim payout for parts (often useful for newer cars).
- Roadside assistance: Support for breakdowns and towing.
- Engine protection: Can help in water damage scenarios (policy dependent).
- Consumables cover: Covers small items like nuts/bolts, lubricants (policy dependent).
Avoid overspending
Add-ons increase premium. Pick only those that match your driving conditions and car age.
What to Check Before Buying
- IDV and premium breakup
- Network garages and claim process steps
- Exclusions (what is not covered)