Comprehensive car insurance is the best type of protection for your car. This policy is one step ahead of the basic third-party insurance policy as it assures complete protection and security of your new car.
Did you just buy your dream car? Well, unless it is anything like ‘Taarzan: The wonder car’, which can magically mend itself, spray paint itself and change its parts on its own, your car definitely needs comprehensive car insurance. You put a substantial sum of your hard-earned money into this car and spend so much time researching the latest model, the jazziest colors, the snazziest of safety features and you cherish it! But most of you know way too little about car insurance and all that it entails.
So, here is everything you want to know (and more!) about why you need a comprehensive car insurance.
The Basic Question: Why is it Needed?
If you own a four-wheeler, you already understand that it needs to be maintained and taken care of. Cars are magnificent machines, magnificent and pricey! When just a tiny dent on the boot from a careless parking incident quickens your heart rate, have you ever thought about what an accident or break-in can do to your precious car?
A road is an unpredictable place where carelessness, accidents, or sheer stroke of bad luck can hurt you and your vehicle. Moreover, at every stage of recovery of your vehicle, you have to scoop out a wad of cash. So, it’s very important to ensure your vehicle against possible damage to protect you and your family against the financial implications of unforeseen circumstances.
Benefits Of Comprehensive Car Insurance
Whether you are a proud new car owner or simply searching for a new insurance policy, it is very important to understand the benefits of investing in reliable comprehensive car insurance.
Comprehensive car insurance is an extensive motor insurance plan that covers the insured person against both, personal damage and any third-party liabilities. It is also known as ‘own-damage’ or ‘other than collision’ car insurance as this policy also protects you financially against any losses that might arise not due to collision. It also covers any unforeseen incidents such as an accident, fire, weather damage, theft, or natural calamity. As this insurance also offers personal accident cover to the owner of the car in case, he/she gets injured in the car accident, therefore it is indisputably, the superior kind of insurance that you can get for your car.
Also Read – 5 Questions to Ask Before Buying a Car Insurance
To encapsulate, the benefits of comprehensive car insurance include:
- Personal damage – Be it an accident, theft, technical glitch, or natural calamity, comprehensive car insurance protects you and your car against a wide variety of adversities, both financially and mentally.
- Third-party liabilities – Mandatory by law, this cover protects you against the legal liability of accidental damages that have resulted in permanent injury or death of a third party. It also covers damage caused to any surrounding property.
- Injuries and loss of life – As specified before, the road is an unpredictable place and car accidents can sometimes turn into tragedies that can endanger you as well as your family’s life. Comprehensive car insurance secures your family’s future in the event of permanent disablement or in the unfortunate circumstance of your death. You can get coverage of up to 2 lakhs for any damage caused to the driver while traveling, mounting, or dismounting from the car.
- Man-made hazards – If your car gets partially or completely damaged due to a man-made hazard, this policy pays for the repairs. These man-made hazards include terrorist activities, riots, and strikes.
- More than just accidents – Definitely cheaper collision insurance would have you covered in case of a shattered windshield or a rear dent in the car body case of an accident. But what if it is an expensive car like Audi or BMW (whose replacements cost big bucks btw) is damaged in the event of an earthquake or a landslide? Comprehensive insurance to the rescue! It covers your car against all unforeseen events, not only due to a third-party collision but also including the events against the forces of nature.
- Complete cover- You name it, the comprehensive cover has it! Most comprehensive insurance covers protect your car from a variety of other mishaps like fire, flood, vandalism, theft, damages due to flying objects/animals, collision with animals (this one is more common than you think), damage due to falling objects like trees and buildings and also In-transit car damages. This policy pays for the losses & repairs incurred in all the above-mentioned events.
That being said, comprehensive insurance is far better than state-mandated third-party liability insurance, as it covers a much wider range of adversities other than motor collision damage.
A comprehensive insurance policy can be customized with certain add-ons to increase the level of protection for your car manifold. You can conveniently make your policy airtight with these add-ons whether you are a new car owner or an old car owner looking for a better insurance policy. These are certain Value-Added extra benefits at additional premium prices such as zero depreciation cost and engine protector.
Here are some common add-on covers that motor insurance companies in India offer:
Zero Depreciation cover – Your car starts depreciating in value the moment you drive it out of the showroom. This cover protects you against having to pay for the depreciating value of your car at the time of claim settlements. In case you meet with an accident, and the cost of damages exceeds the value of your car at the time, zero depreciation cover is a lifesaver. However, this is available only for cars less than 5 years old. For new cars though, you get bumper-to-bumper cover without having to pay anything.
Engine and gearbox protector – This cover is to protect your engine and gearbox in case you are in an accident and in the case of technical glitch & malfunctioning.
Breakdown assistance cover– 24X7 spot protection in case you get stuck in the middle of the road due to a flat tyre, empty fuel tank, or loss of keys.
Tyre protection cover– With this cover, the tyres of your car will be protected/replaced in all accidental and non-accidental conditions.
Key replacement cover– In case your keys are lost or your lock gets broken in case of theft, you can get replacement keys and lock for free.
Consumable cover– This cover ensures that all the consumables/ spare parts (which cost quite a bit) used in your car, such as coolants, washers, nuts & bolts, engine oil, etc. are maintained & replaced.
Personal baggage cover– Protects your baggage & personal belongings present in the car in the case of theft.
Conveyance benefit – This cover makes entitles you to receive a daily conveyance allowance to commute by other means of transport while your car is getting repaired at a garage post-accident.
Return to invoice – This cover allows you to get insured declared value almost equal to the cost price of your car, instead of the latest market value of the car, in case of total loss claims.
Passenger cover – With this cover, you can protect not only yourself in the event of an accident but also the passenger riding with you.
To sum it up, getting comprehensive car insurance from a reputed company would be a decision that you will not regret as it will make your policy more valuable and protect your precious vehicle against all odds.