What is Comprehensive Car Insurance? Everything You Need to Know
What is Comprehensive Insurance?
Comprehensive car insurance is a comprehensive motor contract protecting the customer from personal and third-party liability. It’s also known as ‘own-damage’ insurance or ‘other than collision coverage. This coverage also covers any financial damages that may occur due to circumstances other than an accident. Accidents, fire, theft, and natural calamities are covered under comprehensive auto insurance.
If you’re concerned about your car and the potential financial losses if it’s destroyed or stolen, it’s time to learn more about comprehensive car insurance.
Car insurance is separated into two types in India.
- Car Insurance for Third Parties
- Car Insurance with Full Coverage
In the event of a traffic accident involving your automobile, third-party insurance only protects you against the damages, losses, or injuries caused to a third party. Third-party insurance is required under the Motor Vehicles Act for all vehicles.
On the other hand, comprehensive car insurance covers a vehicle for damages and third-party liabilities. That’s not all, though. If the owner-driver of the automobile is wounded in a car accident, this form of insurance also provides personal accident coverage.
What are the following benefits of comprehensive car insurance?
A comprehensive auto insurance policy protects your vehicle from a wide range of hazards. Take a look at the following list of benefits of comprehensive vehicle insurance:
- It is the most comprehensive level of security you can provide for your vehicle.
- With comprehensive car insurance, you may claim damages sustained in such scenarios if you are judged to be at fault in an accident.
- It protects you from legal action taken against you as a result of an Associate accident, as well as legal fees.
- Financial security and peace of mind
- Provides cash assistance if your automobile is totalled.
- It covers your car in the case of an accident instead of third-party insurance.
What are the following covered under comprehensive car insurance?
It is usually best to have a comprehensive understanding of the inclusions and limitations specified in your vehicle insurance to avoid any last-minute surprises. You must read it extremely attentively to do so. In general, you won’t have to worry about the following because your comprehensive auto insurance will cover them:
- Natural catastrophes like extreme weather can inflict significant damage.
- Fire: This insurance coverage will cover any loss or damage caused by a fire in your vehicle.
- Theft: Unfortunately, if your automobile is stolen, if you have comprehensive insurance, your motor vehicle insurer will replace it with a new one.
- Vandalism: This coverage will cover the cost of repairs or total loss if your automobile is vandalised and is damaged or destroyed.
- Third-party losses: This auto insurance will cover any third-party losses or damage to your vehicles, such as property damage, physical injury, or a third-party person’s death.
- Trees and other falling items might cause damage to your vehicle.
- An act of civil unrest, such as rioting, may inflict damage or destruction to your automobile.
- Car damage while in transit: If your car is damaged while being transported by land, sea, or air, your auto insurer will cover the costs of repairs.
What does comprehensive car insurance do not cover?
If your vehicle is damaged in an accident, you will not be able to file a car insurance claim unless you have comprehensive coverage. Similarly, several things are not covered by a comprehensive vehicle insurance policy:
- Depreciation: This insurance will not protect you if the value of your vehicle depreciates.
- The vehicle’s wear and tear: You will be responsible for any losses or damages resulting from normal wear and tear on your vehicle.
- Mechanical or electrical failure: If your vehicle experiences an electrical or mechanical failure, you will be responsible for the associated costs.
- A person driving without a legal licence causes damage to the car.
- Damage caused by intoxicated driving
- Damages incurred as a result of driving while under the influence of drugs
- Tyres and tubes are damaged. However, if the car is damaged simultaneously, the company’s obligation is restricted to 50% of the replacement cost.
- War, mutiny, or nuclear peril inflict loss or damage to the automobile.
- Consequential damages: It does not cover any loss or damage to your automobile due to the accident. For instance, tyre damage when the automobile is being towed.
Who should get comprehensive insurance vehicle insurance?
- Buying a car is a substantial financial commitment, therefore protecting your new automobile from all types of hazards is critical. As a result, new automobile owners should get comprehensive insurance coverage.
- If you are a fancy car owner like you own a Porsche or Audi, it boosts your self-esteem and attracts thieves, who can damage or steal your car, so the owners should protect their valuable possession with comprehensive car insurance.
- If you are prone to accidents or a clumsy driver, this comprehensive vehicle insurance will save a lot of money for you.
- If you live in a place or resident where the place is prone to accidents or live in hilly areas where landslides are expected, this comprehensive car insurance is necessary to keep your car safe.
Should you choose a comprehensive vehicle insurance policy?
You must upgrade to comprehensive vehicle insurance coverage if you want to keep your automobile protected from any loss or damage. Many consumers reject comprehensive insurance favouring mandatory third-party insurance to keep their rates low. They are unaware that even a slight accident can result in considerable financial losses since they will be responsible for all repairs. However, if you get comprehensive auto insurance coverage, your insurance company will cover any accident involving your vehicle, and you will not be responsible for a single cent. That is a wise financial decision.
Comprehensive car insurance is a boon to all car owners, as it protects them from financial losses if their vehicles are destroyed in an accident. It is the ideal solution to all automobile safety concerns and allows you to enjoy driving. Please don’t put it off any longer; immediately switch to a comprehensive policy.
Read More: Auto News Reporter