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Is it Worth to Cover Your Car With Own Damage Car Insurance?

By Vikas Chandra Das
21 July 2022, 11:46 AM
own damage car insurance

The purchase of an own damage insurance cover is like equipping yourself with a shield that protects you from financial losses in case of an unfortunate incident. 

Read on to know more about this car insurance cover!

What is Own Damage Car Insurance? 

An Own Damage car insurance is designed to protect the insured and the vehicle from damages and losses caused due to unforeseen, unfortunate circumstances. 

It is not a mandatory insurance cover, but having it will allow the insured to seek compensation for all the damage caused to the car. The primary claimant in this policy is the first party.

Usually, the Own Damages premium is based on the make and model of the car, the age of the car, the Insured Declared Value (IDV), the place of registration of the car, and the capacity of the engine.

Add-ons such as zero depreciation cover, engine protection, consumable cover can be opted by the policyholder to enhance the protection of the Own Damage policy. Generally, there are no limits to the number of add-ons that can be purchased, but it is advisable to choose only those add-ons that enhance one’s coverage.

The latest development with regard to this type of insurance is that insurers may now offer Standalone Own Damages insurance cover. This is purchased when the insured already has a valid Third Party car insurance policy in place from either the same or different insurer. This policy can be purchased online.

What is Covered Under Own Damage?

The following is covered under an Own Damage insurance cover –

  • Damages caused to the vehicles in case of collision or accident.
  • Damages caused to the vehicle due to natural calamities such as floods, earthquakes, cyclones, lightning, etc.
  • Losses caused due to fire or arson.
  • Losses caused due to terrorist attacks, riots, strikes, etc.
  • Losses caused due to malicious acts or vandalism.
  • Losses caused due to theft of the vehicle.

It is pertinent to note that provision for towing charges and basic road assistance is provided for in most insurance policies and needn’t be purchased as an add-on. However, to be on the safer side, it is advisable to read the terms and conditions of the policy; it also helps to understand all other specific, additional benefits that can be availed by you.

What are the Exclusions?

The following is not covered under an Own Damage insurance cover –

  • Losses caused by wear and tear of the car.
  • Damages were caused when the car was driven by an individual under the influence of intoxication.
  • Damages were caused by a driver who was driving without a valid driver’s license.
  • The private vehicle was being used for commercial purposes against the terms of the insurance policy.
  • Claims were raised against an incident not covered in the policy. For example, seeking compensation for wear and tear of car parts over time.
  • Consequential damages incurred after the occurrence of the accident.
  • Contributory negligence of the insured.
  • Third-party liabilities.

Should You Buy an Own Damage Car Insurance?

Since this insurance policy is an optional one, unlike TP policy, not a mandate by law, one must purchase this only if the benefit derived is worth the investment. It can be bought by all those car owners who feel that they would like to safeguard themselves financially toward future eventualities as opposed to making a lump sum payment in case of the occurrence of an unfortunate event. The standalone OD policy can be purchased in case one already has registered Third Party insurance. There needs to be a careful cost-benefit analysis done before any investment is made to this effect. To buy a standalone OD car policy, you must already have a Third-party car policy. An ideal car insurance policy is one that covers both third-party and own damage coverage. For this, you should consider a comprehensive policy. If you don’t have car insurance, consider a comprehensive car insurance policy. 

What is a Comprehensive Car Policy?

A comprehensive insurance policy is a wide-ranging, inclusive cover. It is a combination of both a third-party liability cover and an own damages cover. It insures one against eventualities such as theft, damage caused by third parties, riot damage, arson or vandalism, natural disasters, etc. Therefore, a comprehensive insurance policy covers third-party injuries and death, third-party property damage, legal liabilities of the owner in addition to all that subject matter covered under an Own Damages insurance policy. Let's understand this with the help of an example-Last year, Arun purchased a comprehensive car insurance policy, and one day while coming back from his office his car met with an accident. Though it was Arun's fault as he was driving in the wrong lane and damaged the car of a third party. All thanks to his comprehensive policy that he was not only covered against the damages of a third-party liability but also for his own car damage.  


Your most prized possession needs uncompromised care and protection, especially when it is constantly bombarded with all kinds of perils on the road. This might cause some worry to you, as the car owner. An Own Damage insurance policy offers some respite, for it will offer protection in the event of damages to one’s car. It is imperative that one exercises due diligence and chooses the policy carefully, following the requisite procedure, in order to derive the maximum benefit out of it.

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