What is liability only insurance cover in motor insurance? Purchased a new car? Well, congratulations for that! With the purchase of a new car, a number of additional expenses come; like operating and maintenance cost of your vehicle, and many other things. Also, at times, some unfortunate instances can take place and can leave you, and other person’s vehicle damaged. Such unforeseen incidents can be easily dealt with if you have a liability insurance cover in place. However, if you don’t have a proper insurance cover in place, then it can place a dent in your wallet. So, why you need car insurance policy? According to the Indian Motor Vehicles Act, 1988, it is mandatory for all vehicle owners to have a valid insurance policy. In simple terms, you should get your car insured because it saves you from any financial losses, and legal processes due to the accident caused by you or someone else who is driving your car. In addition to this, liability motor insurance covers the safety of someone else’s property too, i.e. usually their car.
What is liability insurance cover? Liability only insurance basically covers the damage caused by you to other people or property, or in other words, liability coverage pays for other person damages but not yours. And, in the meanwhile, you
will be responsible for paying the costs of your own vehicle’s repair. Liability insurance cover can be breakdown in to two categories i.e.Bodily Injury: If someone is injured in an accident caused by you, in that case your auto insurance policy kicks in to help their medical expenses. Property Damage: If in an accident, a person’s property is damaged by your car, then liability coverage takes care of vehicle repair. Hence, liability insurance basically cover the potential cost of damage that you may cause while driving, and protects you in case if you are held legally responsible for a physical injury or damage to someone else property. What does liability insurance policy does not cover? A liability insurance policy covers all third party liabilities. As stated above, the policy does not provide any benefit to the policyholder. So, while opting for this liability car insurance policy, you should be aware of what it covers and what not. So let’s take a look at what this liability insurance do not cover-
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Loss or damage to your own vehicle in case of an accident You cannot purchase an add-on with TP i.e. third party insurance cover.
Hence, according to us, it would be wiser to opt for liability only vehicle insurance if you own an old inexpensive car model, which is cheaper to repair. In addition to this, you should go for this policy if you want to cover the injury, death, or any property damage of third party. However, it would be a wise option to buy a comprehensive cover, if you own a higher end vehicle with expensive parts. Hope this article has helped you understand the functioning of liability insurance cover! Good luck and all the best! Happy Driving!
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