Comprehensive Car Insurance
What Is Comprehensive Insurance Coverage?
- Comprehensive Insurance - A comprehensive 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 All Is Covered Under Comprehensive Car Insurance?
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 All Is Not Covered Under Comprehensive Car Insurance Policy?
- 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.
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Comparison - Comprehensive Car Insurance Vs Third Party Car Insurance Coverage
What is the Difference Between Comprehensive and Third Party Car Insurance?
Comprehensive Insurance Coverage
Third Party 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).
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.
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?
Add-ons covers provide additional coverage to an existing plan. Their greatest advantage is that they provide flexibility to the plans by allowing policyholders to pick and choose the aspects of insurance coverage that suits them best. The following are some of the add-on covers that are available with a comprehensive car insurance cover:
- Zero depreciation Cover
- Consumables Cover
- Engine Protector Cover
- Return to Invoice Cover
- Passenger Cover
- Roadside Assistance Cover
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
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.
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Car Insurance Companies Reviews & Ratings
FAQs About Comprehensive 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.
Which company is better for car comprehensive insurance renewal?
There are various factors that must be considered for selecting a company for renewing a comprehensive car insurance policy. Some of them are Insured Declared Value (IDV), availability of add-ons, network garages, claim settlement ratio. On the basis of claim settlement ratio following are some good car insurance companies: IFFCO Tokio General Insurance Company (96.44%), Royal Sundaram General Insurance (94.07%), Oriental Insurance Company (93.16%), Universal Sompo General Insurance (92.45%) and New India Assurance (92.23%).
Is it compulsory to have comprehensive insurance for a new car?
No, it is not mandatory to have a comprehensive insurance policy for a new car. However, it is an advised car insurance policy for good coverage.
What is the difference between a comprehensive car insurance plan and a zero depreciation car insurance?
The main difference between the two plans is under a comprehensive car insurance plan, policyholder needs to bear the depreciation expenses of the car. Whereas, under a zero depreciation cover, car's depreciation expenses are borne by the insurance company. You can read in details about the two plans here.
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 convert 3rd party car insurance into comprehensive?
Yes, you can convert third party car insurance into comprehensive car insurance by opting for a standalone own-damage cover with it.
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