Things to Know About Comprehensive Car Insurance
Published On Jul 19, 2023
Things to Know About Comprehensive Car Insurance
Now that you've finally made the investment in your ideal car, you want to provide it with the best protection available. A car insurance plan might assist in fulfilling this requirement.
Comprehensive car insurance provides significantly superior protection compared to third-party car insurance. In contrast to a third-party policy, which solely covers third-party damages, a comprehensive policy offers coverage to both parties involved in an accident.
Despite the fact that most car owners are aware that comprehensive insurance offers better protection, only a few are certain what exactly is covered by these plans.
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Coverage Offered by Comprehensive Car Insurance
To avoid any unpleasant surprises down the road, it is crucial to fully comprehend the coverage of comprehensive policies before making a purchase. So what exactly does comprehensive coverage in car insurance means?
A comprehensive policy, as previously noted, provides coverage to both parties involved in an accident. It will provide coverage for the following for the other party in the collision:
- Partial disability
- Permanent disability
- Accidental death
- Property damages
But besides accidents, it also covers a wide range of other situations. Most comprehensive policies do cover the following scenarios:
- Severe weather or natural disasters
- Falling objects like trees
- Riots or civil unrest
The maximum coverage amount that the insurer specified at the time the policy was purchased will be the maximum compensation that the insurer will pay.
What About Own Damages and Injuries?
Car insurance with comprehensive coverage will benefit you if your vehicle is destroyed or you are hurt in an accident. Additionally, the comprehensive policy will cover the following if it includes Personal Accident (PA) coverage:
- Permanent / Partial Disability
- Accidental death
Some personal accident policies also provide coverage benefits for your car's passengers. However, keep in mind that not all comprehensive insurance includes built-in PA coverage. You could be compelled to acquire personal accident as an add-on policy in such circumstances. Always check the inclusions and exclusions of your personal accident coverage at the time of policy purchase.
What Are The Exclusions Under a Comprehensive Car Insurance Policy Cover?
While a comprehensive policy gives your car the best protection imaginable, it does not provide absolute coverage. Exclusions can differ between insurers and plans, just like inclusions do. However, most of the following are not covered by your comprehensive policy:
- Damage done to the car while the driver was intoxicated by alcohol or drugs
- Damage done to the car while the driver was operating without a valid licence
- Damage done to the car after the policy had expired
- Damage done to the car during a nuclear war
- Damage done to the car outside the policy's geographical restrictions
- Mechanical or electrical breakdowns
- Tyres and tubes
- Standard wear and tear
How to Increase the Coverage of a Comprehensive Policy?
One of the best choices, if you want to broaden the scope of your comprehensive car insurance, is to buy add-ons. For instance, comprehensive coverage does not include depreciation cover, and with your comprehensive coverage, you can select a zero depreciation add-on.
When determining the amount of compensation they must pay if your car is destroyed or stolen, insurers take depreciation into account. The insurer will pay out in accordance with the original purchase price of your car after adding the zero depreciation add-on, which prevents it from taking into account depreciation.
As a result, the add-ons assist you with obtaining coverage even for situations typically not covered by comprehensive insurance. There are several other fantastic add-ons you might think about, such as:
- Key protection
- Engine protection
- NCB protection
- 24x7 roadside assistance
The coverage that your policy offers is significantly increased by the add-ons, which only marginally increase your insurance price.
How to File a Car Insurance Claim?
Knowing what is and is not covered by a comprehensive auto insurance policy can help you better understand how to make a claim if you are ever in an accident. The procedure for filing a claim can differ between insurers. In the event of an accident, you'll likely need to:
- File a police complaint
- Inform your insurer
- Submit the required documents to the insurer along with the claim application
A surveyor will be assigned to assess your losses, and your claim request will be accepted if everything is in order.
Comprehensive insurance is typically more expensive than third-party policies. However, if you have concerns about your car's security and financial well-being, it can be a wise investment. Only comprehensive coverage can provide enhanced protection against both third-party and own damage claims. It also offers additional security against events such as burglary, fire, natural disasters, and more, ensuring that these unfortunate incidents do not lead to financial ruin. To find a comprehensive insurance policy that meets your needs and offers the best value for your money, it is advisable to compare different options online.
- What is the new vehicle insurance regulation?
According to the Supreme Court of India, all vehicles sold on or after September 1, 2019, must be covered with a mandatory third-party insurance cover. The insurance term has been set to 5 years for two-wheelers and 3 years for four-wheelers.
- Why is car insurance important?
Car insurance provides financial protection in case of any damage or loss due to accidents, theft, or other covered events. It helps cover the costs of repair or replacement of your vehicle, medical expenses, and any damage you may cause to other people or their property.
- If a car insurance policy expires, what happens?
When your car insurance plan expires, you become uninsured and more exposed to financial dangers. You must renew the policy or purchase a new one before the insurer can provide coverage for you.
- What does NCB in auto insurance mean?
No-claim bonus (NCB) is a premium reduction provided by insurance companies to vehicle owners who have not filed any claims during their car insurance policy.
- What is insurance with zero depreciation?
With a zero dep cover add-on for car insurance, your insurer won't bill you for depreciation when resolving a claim. Simply put, you are exempt from paying the depreciation cost while filing a claim. A comprehensive policy covers both one's damages and third-party damages.