A Car Insurance is a contract between the car owner and a general insurance company wherein the company provides financial support to the car owner in case of any unfortunate event where there is damage to the car. Car insurance safeguards your car against any financial loss that may occur in case of an accident or any unfortunate event. This agreement helps protect the interest of the policyholder against monetary loss due to car damage. The roads are uncertain and keeping this in mind, car insurance has been made mandatory in India under the Motor Vehicle Act, of 1988. Owning a car is exciting but it is also important to keep it secured with insurance given the rise of vehicles on the roads and accidents as well. A car insurance policy comes to the rescue when and lowers the cost of damage or repair significantly.

The former type of insurance protects you against financial and legal liabilities towards a third party. On the other hand, A COMPREHENSIVE CAR INSURANCE policy provides cover to your vehicle against damage due to accident, fire, theft, cyclone, flood etc. Along with this cover, it covers any third party liability.