Where, on the one hand, own damage cover protects the insured vehicle, a comprehensive car insurance policy is a thorough car insurance plan that protects the owner from any liabilities.
From a bird's eye's view, it might look like a comprehensive car insurance policy and an own damage cover are the same things. But if you take a closer view of the inclusions and exclusions, then the differences would be very clear.
We have compiled a list of all the features of both, i.e., the comprehensive car insurance policy and own damage cover, to identify and understand the difference between both. If you are looking to choose between the two to see which one will be suitable for you, you have landed at the right place. We have inculcated the difference between each of these to help you make an informed decision.
Own Damage Cover
Own damage car insurance cover is a value add-on as it protects the insured vehicle. If you have your own damage cover for your vehicle, your car will be thoroughly protected. Let's say if your car undergoes damages or losses due to any unfortunate incident on the road, your own damage cover will protect your vehicle in such situations.
Utility of Own Damage Car Insurance Cover
An own damage policy is relevant only when you have a third-party liability policy. The third-party car insurance policy is the basic cover you need to drive legally on the road. Having an own damage policy will ensure you are protected from vehicle damage and complement the third-party cover you already have.
Comprehensive Car Insurance Policy
A comprehensive car insurance policy protects the insurer from any financial or legal liabilities that arise against him. It covers your car's losses and damages and serves as a personal accident cover while fulfilling all the criteria of third-party insurance.
As the name suggests, a comprehensive car insurance policy will cover all the liabilities that would arise against the insurance holder in unfortunate times of road accidents.
What is a Comprehensive Car Insurance Policy Useful for?
A comprehensive car policy is a thorough insurance policy, which will be a great upgrade against your third-party liability insurance. You can switch from third-party liability to comprehensive car insurance as it already covers all the features of third-party liability insurance.
Differences Between Own Damage Cover and a Comprehensive Car Insurance Policy
There are precise differences in what is covered and not covered under both of these, which draws a clear line of difference. Let us check out the difference between own damage cover and a comprehensive car insurance policy:
- Own damage cover will not cover losses or damages from the insurer to the third party. In contrast, a comprehensive car insurance policy will cover all third-party liabilities, damages, and losses.
- Own damage is a cover like an add-on, whereas a comprehensive car insurance policy is a full-fledged insurance policy.
- The premium for a comprehensive car insurance policy is higher, whereas the premium for a standalone damage cover is not that high.
- If your car damages a third-party property, a comprehensive car insurance policy will provide coverage against it. In contrast, your own damage cover will not provide for any losses or damages of a third-party property by your car.
There are major differences between own damage cover and a comprehensive car insurance policy.
Differences in Benefits
There are add-on differences over and above the base plan policy. Some of the covers can be added with the own damage cover, while some are a part of the exclusion.
With a comprehensive car insurance policy, some add-ons are an inclusive part of the base insurance plan and certain added benefits that come with it. Let us check out these differences:
Benefits of a Comprehensive Car Insurance Policy
A comprehensive car insurance policy will cover your vehicle's damage, damage to yourself, and third-party liabilities. But over and above, you can add many covers to your base plan to protect all the major liabilities and damages.
You can customize your car insurance policy with car insurance add-on covers that you find suitable. Here are some of the add-on covers that you can choose from:
- NCB protection cover
- Roadside assistance cover
- Zero depreciation cover
- Passenger cover
- Engine protection cover
You can add these covers to your base plan depending on the car you own and the roads you drive on.
Read more - What Determines Comprehensive Car Insurance Premium and How to Calculate It?
Benefits of Own Damage Cover
If you are looking for an update above your third-party liability, your own damage cover is the way to go. Own damage cover will protect against damages and losses due to natural or artificial calamities such as earthquakes, floods, fires, theft, etc.
Benefits of own damage cover are as follows:
- It comes with a no-claim bonus.
- It will protect your car for lower premium rates.
- You can get protection against any natural or artificial calamities.
You can get your own damage cover for your car if you already have an ongoing base insurance plan.
Read more - Top Benefits of Buying Standalone Own-damage Car Insurance
Conclusion
There are very intricate differences between own damage policy and a comprehensive car insurance plan. If you are looking to add a protection cover for your car over your base plan, your own damage cover is the way to go.
If you are looking for additional qualities above the third-party liability, comprehensive car insurance is what you can upgrade to. You can customize and choose between various covers to add to your comprehensive car insurance depending on the car you drive and the roads you drive on.
