What vehicle insurance actually covers
Vehicle insurance covers third-party liability, which is mandatory, plus own-damage cover if you buy comprehensive.
The cover in plain terms
Third-party liability, which is mandatory, plus own-damage cover if you buy comprehensive.
What it does not cover
Every policy has exclusions, and they are the part worth reading twice. Look specifically for waiting periods, sub-limits, co-payment clauses and anything described as "reasonable and customary charges" — that phrase is where claims shrink.
Where it sits in the family plan
Insurance is not an investment and should not be judged like one. Its job is to stop one bad event from undoing years of saving. Buy for the catastrophe you cannot fund yourself, and self-insure the small stuff.
Where FamTally comes in
FamTally holds every policy the family has — vehicle insurance included — with sum assured, premium, frequency, renewal date and the members it covers. It totals your cover so gaps are obvious, puts premiums into your monthly cashflow, and reminds you ahead of each renewal. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
What does vehicle insurance cover?
Third-party liability, which is mandatory, plus own-damage cover if you buy comprehensive.
How much cover should we take?
Insured declared value should reflect what the vehicle is actually worth; padding it does not increase what you can claim.
What happens if it lapses?
Annual and legally required. A lapsed policy makes the vehicle illegal to drive and voids own-damage cover.