Comprehensive Car Insurance

What Is Comprehensive Car Insurance Policy?

A comprehensive car insurance plan is a package policy that offers coverage for the loss and damage sustained by both parties involved in the accident/mishap. It includes comprehensive insurance coverage for the damages incurred by the insured vehicle/car as well as third-party liabilities. It is an all-inclusive comprehensive insurance coverage plan.

Policyholders can enhance the coverage of a comprehensive policy with the help of a number of add-on covers such as zero depreciation cover, NCB cover, Bi-fuel kit cover etc., which are available with it. Although a comprehensive car insurance policy is not mandatory by law unlike a third party only car insurance policy, it is nonetheless recommended.

What are the Features of Comprehensive Car Insurance Policy?

The key features of a comprehensive car insurance policy are listed below:

  • In case, your car is covered under a comprehensive insurance plan, then you can make a claim from your respective insurance provider for an accident that happened due to your mistake.
  • In case, you do not have a comprehensive car insurance plan, then you will have to pay for the damages sustained by your car. Also, if the car gets stolen, then you would not receive any compensation from the insurance provider.
  • A car owner is also given coverage under a comprehensive car insurance plan when the cause of an accident cannot be proven. For example, in case the car has suffered damage while being parked from a hit and run accident, then the car owner would receive compensation under this plan.
  • The car owner gets complete peace of mind by getting their car insured under a comprehensive car insurance plan, as upon damages sustained by their car due to an accident, they do not have to worry regarding paying for costly repair works. They will be required to pay for just voluntary excess (in the case opted for) and compulsory deductibles during the time of claim settlement.

Comprehensive Car Insurance Plan Exclusions

There are certain things that shall not be compensated for under a comprehensive car insurance policy. Below mentioned are some common exclusions under comprehensive car insurance:

  • Depreciation of the car
  • Wear and tear due to being old
  • Mechanical or electrical breakdown
  • Damage caused to the car while the driver was driving without a valid driving license
  • Damage caused to the car in case the driver was driving under the influence of alcohol or other intoxicants
  • Damage or loss of car caused in a war or nuclear risk
  • Damage or loss of car which may occur outside the geographical scope mentioned under the policy

Comprehensive Car Insurance Claim Procedure

Here are steps that you follow to file a claim:

Step 1: Register your Claim: Visit the official website of your insurance company, ditch the paperwork and register your claim on the website, by logging into the website with the username and password used at the time of purchasing the policy.

Step 2: Fill the Form and Submit Documents: Download and fill the claim intimation form with correct details such as car insurance policy details, details of the insured vehicle, details of the owner of the insured car etc. and provide supporting documents along with the claim intimation. Upload the form and supporting documents on the website.

Step 3: Self Survey or Digital Survey: You can opt for self-inspection under which you can provide images while inspecting the vehicle for the damage caused to the vehicle. You can also opt for a digital survey which shall be conducted by the surveyor or workshop partner.

Step 4: Track your Claim: After you informed the insurance provider, filled the form, submitted the required documents and completed the survey, you can track your claim status on the website.

Who Should Buy Comprehensive Car Insurance?

Do you have a doubt if a comprehensive car insurance policy is suitable for you or not, below mentioned is the list of people who should consider purchasing a comprehensive car insurance policy:

1. New Car Owner: New car owners should consider purchasing a comprehensive car insurance policy to ensure their new investment is safeguarded as buying a new car can be a major financial investment.

2. Fancy Car Owner: Fancy cars are a huge investment and tend to get broken into or stolen more often as compared to regular cars. A person who owns a fancy car such as a BMW/Mercedes should consider a comprehensive car insurance policy to keep your prized possession secure from damages/theft.

3. Road Tripper: If you love to travel to different places and cities by your own car then you must have a comprehensive car insurance policy to safeguard your car from any emergency and you can also consider a roadside assistance add-on.

4. A resident of Metropolitan City: If you are a resident of a metropolitan area/city then you should consider purchasing a comprehensive car insurance policy to safeguard your car from the risk of accidents, traffic, pollution etc.

5. Overprotective Car Owner: If you are a person who easily gets worried even if you see a single scratch on your car, then you must have a comprehensive car insurance policy because this policy will provide peace of mind while you are driving.

Why Should You Upgrade To Comprehensive Car Insurance?

Most people make the same mistake of purchasing third-party car insurance only because it’s quite affordable. What they don’t understand is that they may have to bear the expenses of repair in case of small accidents or damage to their own car, this is where comprehensive car insurance comes in handy. One should consider comprehensive car insurance in spite of it being a little more expensive than third-party car insurance.

Is it Worth Getting Fully Comprehensive Car insurance?

A comprehensive car insurance policy can be a blessing for all car owners as it provides monetary help on repair or replacement expenses of your car in case of accidents or damage to your own car. A comprehensive car insurance policy saves your money, provides coverage to your car and covers you legally as it already provides cover for third-party damages. It is safe to say that it is worth it to have a fully comprehensive car insurance policy.

What is the Difference Between Comprehensive and Zero Depreciation Insurance?

Below mentioned are differences between a zero depreciation and comprehensive car insurance:

Basis

Comprehensive Car Insurance Cover

Zero Depreciation Car Insurance Cover

Premium Amount

Low Premiums

High Premiums

Claim Settlement Amount

Claim settlement amount is low due to the depreciation estimated and applicable for all parts of the car.

Claim settlement is high because estimation and application of depreciation is done under this policy.

Car Parts Repair

50% depreciation on all repairing parts.

All repairing costs are covered.

Car Age

The depreciation increases as the age of the car increases.

Depreciation will be considered nil.

Is Comprehensive Car Coverage Full Coverage?

Comprehensive car insurance policy can provide maximum coverage to your car. Especially when you customise the policy by adding suitable add-on in the policy. Comprehensive policy covers damage to the car due to accidents, car theft, losses to a third-party, damage to the car due to natural damages, personal injuries or death caused in an accident, damages caused in a fire. Comprehensive car coverage is full coverage.

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What All Is Covered in Comprehensive Car Insurance Policy?

Get comprehensive car insurance online today. Don't forget to explore the following advantages of buying a comprehensive car insurance policy.

  • Own damages incurred by the insured vehicle in any road accident, natural/man-made calamity, theft, fire or any other mishap.
  • Third-party bodily injuries as well as death.
  • Third party property damage.

What Is Not Covered Under Comprehensive Car Insurance?

Even if you hold a comprehensive car insurance policy, here are some coverage which will not be covered under the plan:

  • Depreciation/wear and tear of the vehicle.
  • Mechanical or electrical breakdown of the insured vehicle.
  • The accident occurred when the vehicle was being driven without a valid driving license.
  • The accident occurred when the driver was under the influence of intoxicants.
  • Any loss or damage due to mutiny war, or nuclear attacks and other events that are beyond compensation.

What is the Difference Between Comprehensive and Third Party Car Insurance?

Below given are the differences between the Comprehensive Insurance Coverage and Third Party Insurance Coverage:

Feature

Comprehensive Car Insurance

Third Party Car Insurance

Coverage

Comprehensive insurance policies offer compensation for damage caused to the insured vehicle as well as the injury/death of a third party. It also offers coverage up to a maximum cap of Rs 7.5 lakh in case of third-party property damage.

The third-party car insurance plan offers compensation for the injury/death of a third party (as decided by a court of law) and third-party property damage (up to Rs 7.5 lakh).

Add-ons

A number of add-on covers such as Zero Depreciation Cover, Consumables Cover, etc. are offered along with comprehensive car insurance policies against an extra premium.

No such add-on covers are available for purchase with third-party policies.

Cost

Comprehensive plans are comparatively costlier due to extensive coverage.

Third-Party policies are compared cheaper to comprehensive policies due to their limited coverage.

What are the Benefits of Purchasing Comprehensive Car Insurance?

Here are the benefits of purchasing a comprehensive car insurance plan:

1. Highest Level of Protection: Car insurance adds a layer of protection for both the policyholder and his/her vehicle. It does this by compensating for any losses due to a mishap and thus giving financial stability and peace of mind in such times of crisis.

2. Covers Liabilities: In case of a mishap where the policyholder is at fault, he/she will require third-party insurance to cover the costs. This type of cover is compulsory. With a comprehensive cover, third party liabilities are taken care of.

3. Own-Damage: In the event of a mishap the insurance will also cover the cost of the vehicle’s damage. This includes damage caused due to natural or manmade calamities, vandalism, accidents and theft.

4. Single-Premium: The biggest advantage of a comprehensive plan is the coverage it provides for both third party liabilities and own-damage under a single premium making it the most hassle-free way to remain insured.

5. Add-ons and NCB: With a comprehensive cover you can purchase add-on covers to further strengthen the policy. Additionally, you can also receive an NCB for claim-free years on the own-damage cover within the plan.

What Add-ons Can You Purchase with Comprehensive Car Insurance?

Apart from providing comprehensive insurance coverage, another advantage of comprehensive car insurance is that it offers various add-on covers with the policy. The add-on covers provided by the comprehensive policy will help you enhance the coverage of your policy.

For example, if you opt for a roadside assistance add-on cover with your comprehensive car insurance policy, you will be provided with 24x7 assistance in a situation where your car breaks down in the middle of the way. If you own this add-on cover, the car insurance company will provide you assistance in different ways such as towing the car, arranging a mechanic, arrangement of alternative vehicles, delivering fuel, managing a hotel stay, and so on.

What is NCB in a Comprehensive Car Insurance?

Comprehensive plans have higher premiums than third-party insurance. This is because the comprehensive plan includes an own-damage cover and thus provides much wider coverage. Additionally, the No Claim Bonus or NCB is offered on the own-damage cover within the plan. The NCB is a reward given by the insurance provider to the policyholder for a claim-free year. It is accumulative in nature and goes up to 50% in the 5th consecutive claim-free year. The following chart explains how the NCB is calculated:

Number of Claim Free Years

NCB Percentage

1st Year

20%

2nd Year

25%

3rd Year

35%

4th Year

45%

5th Year

50%

How to Purchase a Comprehensive Car Insurance Policy?

The following steps will help you to buy a comprehensive insurance policy from InsuranceDekho

Step 1: Visit our website InsuranceDekho

Step 2: In the ‘Get Your Quote’ section provide your car registration number or other details such as its make model and year of registration. Then select ‘proceed’.

Step 3: Enter your personal details, i.e., your name and mobile number and all the quotes for comprehensive car insurance plans will be visible on your screen.

Step 4: Compare the quotes and select the policy that suits your needs and price point.

Step 5: Make the payment for the policy of your choice and the policy document will be sent to your registered email ID.

How Comprehensive Car Insurance Premium Calculated?

When it comes to finding the best way to compute the premium of a comprehensive car insurance policy, the premium calculator is considered the best option. A premium calculator is an online tool designed to help you know the correct premium for your car. By entering correct and accurate car details such as car’s make, model and variant, manufacturing year, registration date, RTO location, etc., along with the status of your No Claim Bonus (NCB), you can easily find customised results from this calculator. If you know the right amount of premium for your car, it can assist you to opt for the most suitable premium quote as per your needs and budget.

However, you can also follow a simple formula to calculate the premium amount of your car insurance policy which is given below:

Own Damage Premium – (No Claim Bonus + Discounts) + Cost of Add-ons + Third Party Premium as Fixed by the IRDAI = Comprehensive Car Insurance Premium

Factors That Determine Car Insurance Premium

The premium of a comprehensive car insurance policy is highly affected by the following factors:

  • Age of the Car Owner – People below the age of 25 years are considered risky drivers. Therefore, insurance companies offer car insurance at a higher premium to individuals in the age group of 18 years to 25 years.
  • Make, Model and Variant of the Car – Insurance companies offer insurance to high-end cars such as BMW, Audi, etc., at a higher premium when compared to budget cars such as Alto, Santro, and so on, due to the higher value of their parts.
  • Registration Location – The registration location also affects the premium cost as the cars are insured at a higher premium in urban areas where traffic density is higher in comparison to the suburban areas as the urban locations are more prone to accidents.
  • Type of Fuel – In comparison to petrol or diesel cars, a CNG fitted car is charged a higher premium by the insurance companies.
  • Manufacturing Year – With age the depreciation reduces the value of the car in the market which ultimately decreases its Insured Declared Value (IDV). The insurers charge a lesser premium amount for cars with lesser IDV.
  • Discounts – Different types of discounts tend to decrease the premium of car insurance. For example, you can get a 2.5% discount on the premium, if your car acquires an ARAI approved anti-theft device. You are also entitled to get a discount for being a member of the Automobile Association of India (AAI).
  • No Claim Bonus (NCB) – The No Claim Bonus is provided by insurance companies to the insured person for making no claim in a policy year. This benefit is given in terms of discount which ranges from 20% to 50% as it accumulates with every claim-free year.

How to Reduce Car Insurance Premium?

When you know the components that affect the premium of your car insurance policy, it becomes easier to cut Comprehensive Car Insurance Costs. Here are the ways to reduces your premium:

  • To drive sensibly and earn a No Claim Bonus is the best possible way to get your premium reduced without any hassle.
  • Opt for a reasonable IDV of your car. Selecting a higher IDV can get you a higher claim but for that, you also have to pay a higher premium. So, choose the IDV accordingly.
  • You can reduce your premium by gaining discounts by becoming a member of the AAI and by installing ARAI approved anti-theft devices in your car.
  • Drop all the unnecessary car insurance add-on covers that increase the amount of your premium and come less in use.
  • Renew your policy before its expiry date. Delaying the renewal process can make you go through a paid inspection, get you penalised to renew your policy and could make you lose your NCB.
  • Try to raise no claim for minor expenses arising out of an accident, as it will terminate your No Claim Bonus (NCB) benefit and the premium for your next year will increase again. Hence, try to bear small accidental expenses or of any other sort from your own pocket without raising any claim.

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FAQs About Comprehensive Car Insurance

  • What is comprehensive car insurance?

    A comprehensive car insurance is a type of policy that provides financial protection against the liabilities that you may incur towards a third party. This plan also provides coverage for own-damages sustained by your own car arising due to an unforeseen incident.

  • How to choose comprehensive car insurance?

    Comprehensive car insurance must be selected by considering various factors such as coverage offered, insurance company's strength of network garages, cash settlement ratio, claim process etc.

  • Is it worth getting comprehensive car insurance?

    Yes, it is beneficial to opt for comprehensive car insurance as it offers a dual coverage of standalone own-damage as well as third party cover. To know more about comprehensive car insurance click here.

  • Is there any coverage for animal damage under a comprehensive car insurance plan?

    Yes. For this, you are required to inform your insurance company as soon as possible after detecting the damage to your car due to an animal. The insurer would send a surveyor to assess whether the damages sustained by your car were because of an animal attack. Thereafter, the claim procedure would take place as usual.

  • Why is it important to purchase a comprehensive car insurance plan for my old car?

    A comprehensive car insurance plan offers coverage against a variety of risks including windshield damage, fire, natural calamities, accidents, etc, that are beyond one’s control. Irrespective of the car being new or old, these damages can cost you the same for repair work. Therefore, it is recommended to get your car protected with a comprehensive car insurance plan, especially if you use your car oftenly.

  • What is a comprehensive car insurance plan?

    A comprehensive car insurance plan is a kind of motor insurance plan that offers protection to the policyholder against both own damage and third party liability.

  • Which insurance is better for a car - comprehensive insurance or third party car insurance plan?

    A comprehensive car insurance is better than a third party plan as it offers wider coverage.

  • What is the difference between comprehensive insurance and 3rd party car insurance?

    Comprehensive car insurance policy is not a mandatory policy whereas third party car insurance is a compulsory cover. Another difference between them is that the comprehensive cover offers coverage for third party liabilities as well as own-damages of your car, whereas third party plan only covers the liabilities related to third party.

  • Can I shift my car insurance plan from a third party liability plan to a comprehensive car insurance plan?

    Yes, if you are buying a comprehensive insurance plan from the same insurer, in such a case, you can contact your insurance provider and request them to switch your insurance plan from third party liability insurance to comprehensive insurance plan. Before the change in insurance plan gets implemented, the insurance company may send a surveyor to inspect your car.

      Moreover, it is also feasible to shift between the insurance companies. Here, you are required to intimate your existing insurer regarding your intention to switch at least a month before. This would help in enabling a seamless transfer without causing any gap in insurance.

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