What is Motor/Vehicle Insurance?

Motor/ vehicle insurance is a type of insurance that predominantly covers damage done to your vehicle due to an accident. The vehicle insurance policy covers damage done to your vehicle either by manmade causes like theft, dents, scratches, etc. It also covers your vehicle for damage by natural causes like floods, earthquakes, etc. In India, it is compulsory for vehicle owners to buy a vehicle insurance policy, under the Motor Vehicle Act, 1988. Vehicle insurance also covers your liabilities towards the third-party.