No one should buy a car insurance policy because the law enforces it on you. You should buy insurance because you and your car need it. And you're not supposed to stop there. It's crucial to know the level of coverage offered by the type of insurance you've selected.
It can support you in claims and renewals. You can use the benefits if all the specifics and situations abide by the program requirements.
What are the Inclusions in Standalone Own-damage Car Insurance?
Car insurance plans vary from one insurance provider to another. Most policies, however, include the following.
1. Any damage is done to your car during an accident
If you are involved in an accident and your car has borne some damage, you should contact your insurance provider as soon as possible for your insurance claim. Most of the plans provide you with a timeline of 24 hours to tell the insurance provider of the accident.
You may get your car towed to a network garage (if included in your insurance cover) or a standard garage to repair the vehicle. Following the car's inspection and the calculation of the expected costs, the insurer approves the claims and releases funds for repair work.
2. Natural Calamities
In the case of unforeseeable natural disasters such as flooding, landslides, and earthquakes, a comprehensive insurance policy for your vehicle will protect it. For example- Avinash's car got damaged in a cyclone hence he was worried whether he would be able to get the claim or not. However, on contacting the insurance company, he got to know that since he has a comprehensive car policy hence he got covered against the damages of the cyclone. So, the insurance company reimbursed the entire damage cost of his car.
3. Man-made Disasters
Your car insurance policy will cover your vehicle from numerous human-made hazards such as strikes, terrorism, riots, and fire.
4. Theft of your car
In case your car is stolen, you will be liable to claim an amount equal to the declared insured value mentioned in your car insurance policy.
6. Fire-related damages to your car
Any damages sustained by your car due to fire, natural or human-made, will be covered by your insurance policy. In case of a total loss, you will receive an amount equal to the Insured Declared Value of your vehicle.
In addition to these inclusions, you can upgrade your auto insurance policy by choosing a higher premium add-on coverage.
What are the Permanent Exclusions of Standalone Own-damage Car Insurance?
Car insurance exclusion includes threats or situations that are not protected by the car insurance policy. These are often clearly indicated in the policy documentation. It is important to know the policy exclusions so that you are prepared for any event.
1. Damage done due to illegal activities
Damages suffered when using the vehicle for unauthorized purposes, damages caused to the automobile due to its use outside limits, fraudulent accidents, harm caused to the vehicle in the event of an accident when the driver could not produce a valid license, damage to the car caused by an accident involving an underage driver, or one driving on the wrong side of the lane, willful harm caused by the owner to the car are some of the permanent exclusions of the own damage car insurance.
The harm caused to the vehicle when the policy had expired and was not renewed is also not covered.
2. Third-party liabilities
The own-damage car insurance does not cover third-party liabilities. Well, which means, if your car hits a third-party person, vehicle, or property, all the expenses will be borne by you only as your insurance company is not liable to compensate for the same.
3. Damage done due to Drunk driving
The harm caused to the vehicle while driving under the influence of drugs or alcohol is not covered.
4. Damage caused by war, nuclear attacks
Destruction as a result of war, terrorist attacks, hostilities, or nuclear accidents is also excluded.
5. Consequential losses
The policy will not cover consequential damages due to certain actions by the car owner and not due to an uncertain case. For example, the engine damage caused after a hydrostatic failure during the monsoons due to the owner's negligence, as he had cranked it up in a flooded environment, will not be the insurer's liability.
What are the Exclusions that can be Covered With a Sufficient Add-on?
Certain risks that are not included in the regular insurance plan can be added to the additional premium payment package. These forms of exclusions are as follows.
1. Mechanical expenses with zero depreciation cover
A regular plan does not typically cover mechanical costs related to the vehicle's wear and tear and its parts. However, the inclusion of a zero-depreciation coverage means that the depreciation value of the damaged parts does not get deducted before reimbursement. In effect, you will obtain full reimbursement of the costs incurred for the replacement of the pieces.
2. Save on the cost of the car with return-to-invoice
For your own damages, the maximum amount that the insurer will cover is equal to the IDV of your car, This can be subject to deductibles. Adding the Invoice Cover to your policy enables you to demand the full sum charged for the vehicle. However, this coverage is only applicable in the first few years after the purchase.
3. Engine malfunctions using engine protection cover
Typically, a car engine is not covered for non-accidental malfunctions. If you install a cover for the engine protector, you will be insured against non-accidental electrical and mechanical failure.
4. Roadside assistance cover
A 24x7 Roadside Assistance cover helps you in emergencies that include the start of a battery, emergency fuel, repair of a punctured tire, etc.
Purchasing a car insurance policy is not enough. You should be aware of the extent of coverage, permanent exclusions, and add-ons covering some exclusions. All this will help you to derive maximum value from your policy.