Property Damage Liability in Car Insurance: Key Facts to Know

As per the Motor Vehicles Act of 1988, you must mandatorily maintain valid car insurance if you own a car. This is not only to meet the legal standards, but it acts as a financial safeguard during accidental circumstances involving your vehicle. However, third-party property damage cover is mandatory for every vehicle. Zurich Kotak General Insurance is a commendable name in this category.

What is property damage liability car insurance?

This is the basic standard form of car insurance policy offering the policyholder the necessary financial protection if discovered responsible for property damage or injuries in a car accident. This is the basic coverage essential to meet the legal norms in the country, effectively highlighting the importance of responsible driving.

Components of third-party property damage cover

This particular coverage policy offers the cost coverage associated with the injury or death of the third party because of you. It covers the associated medical bills and recovery costs, depending on the terms of the plan.

Liability for material damage

This liability coverage car insurance policy offers coverage for the repairing or replacement of third-party property that may have been damaged because of your vehicle. Such property includes other vehicles, objects, or even buildings.

Coverage limitations

Property damage liability car insurance often mentions certain limitations. The first one represents the optimum amount the insurer will pay in thousands for the physical injury per individual; the second number denotes the optimum coverage of physical injury limit per individual per accident; and the last number is the optimum limit for property damage limits every accident. You must understand these limits well beforehand to avoid any unfavourable circumstances during claim settlement.

Importance of third-party property damage cover

Legal norms:

Liability insurance is a mandatory necessity in the country, to ensure that the responsible drivers can cover the costs of any sort of damage they cause. Failure to meet this legal norm may lead to grievous consequences.

Financial security:

This third-party insurance cover protects the policyholder against the unprecedented financial burden of damages and lawsuits. This third-party insurance policy acts as a protective shield to manage such unprecedented unfortunate circumstances better.

Choosing the right amount of coverage:

While choosing the third-party insurance coverage amount, you must critically assess your financial status and personal and legal requirements. You may choose to save money by choosing the minimum amount, but it involves the risk of exposure to vulnerability in the case of any serious accident.

Conclusion

This comprehensive article highlights the importance and benefits of third-party liability coverage. Mastering these standard basics of this liability car insurance policy will not only help you maintain the legal norms but also act as a protective cover for you as well as others. You can ensure cautious and confident driving with this. You can easily purchase online car insurance from the comfort of your home.

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