Should You Choose Only The Mandatory Auto Insurance Or Add Other Components?

A motor insurance policy, typically, consists of two components: third-party liability cover (TP) and own damage cover (OD). The TP cover is mandated by law and is required for vehicle registration. It provides coverage to a third party in case of property damage, bodily injury, or death caused by your insured vehicle. This cover protects you from hefty fines and legal issues in case of an accident. The claim amount here is decided by the court and can be substantial sometimes. The OD component covers the damages to your own vehicle. It includes coverage against natural calamities like floods, theft, fire, riots, and more. For example, if your vehicle gets damaged in floods, it will be covered only if you have an OD component in your insurance policy. Hence, it is always advisable to go for a comprehensive motor insurance policy that includes both TP and OD covers. Apart from these,...