Importance of A Comprehensive Car Insurance Policy
Updated On Oct 14, 2023
Know the importance of a comprehensive car insurance policy. It is important as it combines the benefits of third party insurance with that of a standalone own damage insurance policy and provides the highest level of security.
Why Is A Comprehensive Car Insurance Policy Important?
As per the Motor Vehicle Act of 1988, it is mandatory by law to have at least a Third party insurance (also known as liability only insurance) for your car. A comprehensive car insurance policy is important as it combines the benefits of a Third Party insurance with that of a Standalone Own Damage insurance policy and provides the highest level of security.
Coverage Provided By A Comprehensive Car Insurance Policy
A comprehensive car insurance plan comes with the following coverage:
- Third Party Coverage: A comprehensive policy covers any damages that may arise in terms of property damage or bodily injuries as sustained by third parties involved in any accident or collision with your car.
- Own Damage Coverage: A comprehensive car insurance policy ensures that any damages incurred by your car during an accident/mishap get covered in the plan in addition to third party liabilities, unlike in a third party insurance policy.
- Protection Against Natural Calamities: A comprehensive car insurance policy is also important due to the fact that it offers coverage from any damage faced by your car due to natural calamities such as floods, earthquakes, or any other such instances of disaster. These can cause irreparable damage to your car and would not be covered by third party insurance as they do not involve a third party and thus to ensure that you have protection from natural calamities in terms of reimbursement for repairs or in the case of total damage to your vehicle, it is important to have comprehensive car insurance.
- Security Against Theft: Another important feature of comprehensive car insurance is that it offers security against the theft of your car. If your car or any of its components are stolen then you would be compensated for the losses by your insurance company if you are covered by a comprehensive insurance plan, and would be reimbursed for the IDV (insurance declared value) of your car.
- Protection Against Other Mishaps: A comprehensive car insurance plan would offer protection and compensation for any damage caused to your car by a fire accident, strike, riots or any other man-made disaster. Although mechanical defects are not covered, if a fire occurs due to an external source you should be compensated for the damages up to the IDV of your car. This gives additional peace of mind and proves that comprehensive car insurance is extremely important.
Car Insurance Add-ons Can Opt With A Comprehensive Plan
Comprehensive car insurance policy also lets you have the option of strengthening your coverage with the provision of add-ons, which are additional coverages available to you at an additional premium which would give you a more robust safety net for your car. Examples of this include Return to Invoice cover, Engine Protection Cover, or Roadside Assistance cover.
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It can be seen that comprehensive car insurance is extremely valuable and offers a range of coverage that would not otherwise be available. The peace of mind availed through this type of insurance policy is truly priceless, as it offers you the highest level of security for your car.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.