Comprehensive Car Insurance

What is comprehensive car insurance?

A comprehensive car insurance policy covers losses/damages to you and your car in addition to protecting you against third-party liabilities. You should opt for this type of car insurance if you wish to get financial protection from losses caused due to accidents, theft and natural disasters. The comprehensive plan is recommended by experts for all-round financial protection.

The premium for such a policy consists of both a third-party premium and an own-damage (OD) premium. While the third-party premium is decided upon by the insurance regulator, OD premium varies based on the car’s make-model, age of the car, engine capacity, and geographical zones.

In case you do not already have the requisite Personal Accident Cover (PAC), you can also opt for the same along with your comprehensive car insurance. The government of India mandates that all drivers on Indian roads have a PAC of at least ₹15 lakh sum assured.

Why comprehensive car insurance?

While it is mandatory that you get at least a third-party liability car insurance, it is better to invest in a comprehensive car insurance as it would also provide you with:

Cover against natural calamities

The weather conditions have become highly unpredictable. A sudden downpour can lead to flash flooding almost in any city in India. Such a flood could also cause damage to your vehicle. This is where a comprehensive car insurance can come in handy and help you save on repairs.

Cover against man-made acts

But natural calamities are not the only risk your car faces. It could also be stolen or be subject to other malicious acts. A comprehensive car insurance policy would also protect you from the financial implications of such an act.

A third party liability insurance

A comprehensive car insurance includes a third party liability cover by default.

Access to add-on covers

Not everyone has the same car insurance needs. You can customize your car insurance policy through add-on covers that provide protection under specific conditions that are more likely to affect you. Some of the more popular add-on covers include zero depreciation cover, engine and gearbox cover and return to invoice cover.

Benefits of buying comprehensive car insurance

If you are still not convinced, here are a few more benefits of buying a comprehensive car insurance policy:

• 1. All car owners run the risk of falling victim to car theft and hijacking. Buying a car is a substantial investment, if it gets stolen would you be able to replace it out of your pocket? Can you afford to buy the same make and model again? You may have taken out a car loan, and you would still have to repay it even if your car is stolen. A comprehensive car insurance will cover you against these eventualities by paying out the insured declared value of your car in case of a theft.
• 2. Your car would usually be parked out on the road. A random passer-by may decide to scratch it out of some malice or there may be a protest on the road and your car may get damaged by the protestors. A comprehensive car insurance will pay for repairs in such scenarios as well.
• 3. If you are in a collision with a third-party and they are at-fault, then their car insurance will pay for any damages that your car sustains. But what if you collide with an animal on the road? Your car would still sustain damages and dents. A comprehensive cover would pay for these damages as well.
• 4 . Car fires are devastating and can even lead to your car being unrecoverable. With a comprehensive car insurance policy, you can at least be assured that the financial hit from such an incident would be contained.

Some of these scenarios may seem a little far-fetched, but they are within the realm of possibilities. While you cannot predict when an accident may happen, it is best to be prepared for all eventualities when a large investment is involved.