A comprehensive car insurance policy is the one an owner gets to protect his four-wheeler in times of theft, flood, calamity, damage, or road accidents and cover the damage to the vehicle.
The Government of India has mandated that a car owner have third-party liability insurance. Comprehensive car insurance is different from getting third-party insurance because, unlike third-party insurance, it covers the damages of all the parties involved - both you, passengers and the third party.
You can add all the necessary covers to your base policy and customise insurance that suits the best for your car. Understand the usage of your vehicle and make your best choice considering all the factors.
What is Covered Under Comprehensive Car Insurance?
Under comprehensive car insurance, the insurance provider covers the damages to your four-wheeler and driver and does the same for the third party involved.
It will replace or provide for the damages of your car’s spare parts in case of a road accident. If the driver is injured, you can get them treated from a wide array of hospitals that are connected with your insurance policy. If your car has broken down in the middle of the road, this car insurance policy will offer you the contact of the closest garage so you can have it fixed.
A comprehensive car insurance policy will cover any legal or financial liabilities that arise against you in circumstances such as accidents involving a third party.
Damages Covered Under Comprehensive Car Insurance
Here is a list of some damages covered under a comprehensive car insurance policy:
- Damages caused in a road accident
- Damages caused due to fire or explosion
- Motor insurance against the theft of your car
- Damages caused by natural calamities like floods, earthquakes, landslides, etc.
- Damages due to riots, strikes, vandalism, etc.
- Personal injury or death
- Third-party injury or death
Add-on Covers with a Comprehensive Car Insurance Policy
Over and above the basic features of comprehensive car insurance, you can have several car insurance add-ons to your policy based on your needs and use. These covers are designed to enhance the benefits of the policy.
If you are getting new car insurance, check that the covers are suitable for your usage. Let us dive into some of these add-on covers:
1. Zero-depreciation cover
Zero depreciation car insurance cover exempts you from the payment of depreciation when filing a claim. This type of cover is only valid on cars not more than five years old.
2. No Claim Bonus protection
Usually, you get a no-claim bonus (NCB) on your car insurance policy renewal, provided you don't claim in the previous policy year. And the trend goes on with every claim-free year. The bonus translates into a premium reduction of up to 50% on renewal. But you can't predict that you won't be claiming in the future. With a single claim, the NCB falls to zero. However, with the no-claim bonus protector cover, you can claim and get that bonus intact. You will be allowed to claim a maximum of two times during the policy term to retain NCB.
3. Tyre Protection Cover
Tyre protection cover in car insurance protects your tyres from damages and loss in any accidental and non-accidental situations.
4. Return to Invoice
Normally, the car insurance claim amount equates to the IDV, which does not include depreciation costs, taxes, registration charges, etc. With the return to invoice car insurance add-on cover, you can get all that you won't without having the same. This is applicable only when the claim is made for complete loss due to theft or damage beyond repair.
5. Passenger Cover
Passenger car insurance cover will provide medical benefits to the passengers in case of any unfortunate incidents on the road.
6. Conveyance Benefit
This cover will provide for your regular commute in case your car is taken to be repaired due to accidental or any other damages.
7. Engine and Gearbox Cover
The engine is the heart of your car. Also, the cost to revive a broken engine is very high. If you have a total engine failure, it will get even more costly. An engine and gearbox cover will prevent your car from such engine hazards. Your car insurance policy will take over the financial responsibility in such cases.
Car Insurance Cost
The annual cost of car insurance will be based on the IDV of your car, the add-ons you opt for, etc.
The approximate average cost of an add-on can increase the premium you pay. This will fluctuate based on the covers you choose and the spare parts of your car.
The renewal of your car is also another cost to consider. This renewal happens yearly or after three years. Depending on your base policy, your car insurance renewal cost would be the same as your base policy + add-on charges + GST charges.
Read more - What Determines Comprehensive Car Insurance Premium and How to Calculate It?
To Sum Up
Comprehensive car insurance will protect your car in unfortunate times. Check out the best car insurance providers and see the terms and conditions of their policies. Choose your add-on covers wisely as that comes with an additional premium. If you want to know your car insurance cost beforehand, you can use online car insurance calculators.
Read more -
