How much does auto insurance cover?

Answer 1

There are mainly two types of auto insurance policies. One is Package insurance(comprehensive) which covers economical loss sustined by the owner of the vehicle, upto the extent of IDV(Insured's Declared Value) upon happening of accident. Second is Third party insurance which is compulsory by motor vehicle act, 1938 which covers lost sustined by others by way of bodily injury/death, property damage due to accident of your vehicle. Third Party losses are measured by court of law. If a person dies due to accident of your vehicle, the liability of compensation is upon the owner which is transferred on the shoulder of insurance company by way of insurance contract(Policy). In contract of insurance, first party is insurance company, second party is insured and all other than these two are third parties.