A Complete Guide on Comprehensive Car Insurance
In India, it is mandatory that every vehicle being driven on the road be insured as per the Motor Vehicles Act of 1988. This rule applies to your car too.
Car insurance is mainly categorized into 2 categories i.e. third party car insurance and the comprehensive car insurance policy. But what will surprise you (if you don’t really know) that only the third-party insurance is compulsory by law. And therefore, buying a comprehensive car insurance still becomes a matter of choice.
Doesn’t comprehensive car insurance sounds like a good great deal? Simply because, who wouldn’t want a car insurance that is "comprehensive" in nature?
What does it mean?
A comprehensive car insurance is a complete coverage for any damages done to your car due to any dents caused by any other vehicle during a road accident. Or say, the windshield of the car getting damaged or broken or may be your prized possession getting stolen.
Below are the damages/injuries specifically taken care by the comprehensive car insurance policy:
- Natural disasters
- Civil Disturbances
- Damage done to your car by animals or wildlife
- Road accidents
Opting for a comprehensive coverage is however a matter of choice since your mandatory third-party liability insurance won’t really cover any of the above injuries done to your beloved car.
But, let me tell you that you can simply read the policy wordings and check the perils covered under the comprehensive car insurance!
Why Comprehensive Car Insurance?
It is not only convenient but also recommended to buy a comprehensive car insurance. Let’s have a look at the host of benefits offered by the comprehensive car insurance:
- Not really expensive
You might think that the comprehensive car insurance is expensive than a third-party car insurance. Yes it is. But, if you compare the damages they cover, you might feel that the difference in price is merely negligible.
- You get an enhanced coverage
You may not realize but you limit your coverage by opting for third-party car insurance. If you buy a comprehensive coverage, you can enhance your car insurance policy by opting for add-ons.
- It covers your car too
A third-party car insurance covers the damages done to the third-party but not to your car. But, a comprehensive car insurance covers your car too.
Should you upgrade?
Yes, it would be a wise decision to upgrade your car insurance policy from third-party to a comprehensive one. Simply because, if you realize, you are already paying for a car insurance that covers damages done to the third-party only.
It makes sense to spend a little extra for the hosts of benefits offered by the comprehensive car insurance. Besides, it is less complicated to claim for a comprehensive cover than a third-party cover.
What does comprehensive insurance cover?
Comprehensive car insurance covers certain damages done to your car. Let’s focus on the 5 crucial benefits of opting for one:
1. What if your car gets stolen
Would you be able to afford another car if in your wildest dream your car gets stolen? Obviously, NO! This is why you should opt for a comprehensive package policy.
The amount of the car gets reimbursed as per the current value of your stolen car.
2. What if a deer strikes your car
Your car can majorly get damaged due to animal collision. A third-party wouldn’t work in this case. Your dented car, broken windshield or any other damages caused due to the animal collision is covered in the comprehensive car insurance.
3. What if your car gets damaged due to floods or due to any natural disaster
Chennai floods had literally swiped off many vehicles. Water can destroy the engine and other important parts of the car. Getting it repaired would cost you a BOMB! Having a comprehensive car insurance would cover damages caused due to such natural disasters.
4. What if your car catches fire
Your car might catch fire due to vandalism. It may even get damaged due to falling objects like a big tree. Comprehensive car insurance would pay for such damages.
What does comprehensive insurance doesn’t cover?
Not every time will the comprehensive coverage show its magic. There are instances where the comprehensive cover will have its exclusions. Let’s have a look at them:
- Damages caused if the car driven under the influence of drugs, alcohol or narcotics
- Damages caused if the car driven without a valid driving license
- General wear and tear due to ageing
- Mechanical or Electrical breakdown
- Any consequential loss
So, make a wise decision and opt for a comprehensive car insurance. By doing so, you are not only protecting your car from fire, theft etc. but also keeping your worries at bay!
I am an expert writer in Insurance Industry and have knowledge about various insurances online like Car Insurance, Two-wheeler Insurance, Health Insurance.