Why is it a good idea to have a comprehensive car insurance?

As per the Motor Vehicles Act of 1988, it is compulsory for all vehicles plying on Indian roads to have at least a third-party motor insurance policy. It covers the vehicle owner against financial and legal obligations that might arise in case of a road mishap that could cause property damage or bodily injuries to a third party.

However, just a third-party car insurance plan is not enough to protect a policyholder’s own car. This is when a comprehensive insurance policy comes to the rescue.

What are the benefits of purchasing a comprehensive car insurance policy?

As the name suggests, a comprehensive car insurance extends accidental loss or damage to the policyholder’s car. In addition, it brings along various benefits, such as –

1. Extensive financial coverage

A comprehensive car insurance plan provides extensive coverage by compensating the insured in case his/her vehicle suffers damages during a road mishap. Policyholders can either raise a claim from the insurance company or visit one of the network garages to benefit from a cashless claim.

2. Provides compensation against disability or death

A comprehensive car insurance policy also provides coverage for death or bodily injuries to the policyholder. In case the insured suffers total disability or death due to an unfortunate road accident, he/she gets the benefits, as stated by the insurer.

3. Covers financial and legal hurdles

Apart from extending financial coverage from damages to a policyholder’s vehicle, this policy also covers the legal compliances that may arise from an accident. The financial obligations arising from an accident case court proceedings are also covered under comprehensive vehicle insurance policies extended by leading insurance providers.

4. Protection against fire

This insurance policy also insures the vehicle against damages caused by fire. However, policyholders must note that it does not include fire produced by mechanical defects or engine overheating.

The policyholder becomes eligible to receive a full compensation up to the IDV (Insured Declared Value) in case of damage to property due to fire.

5. Protection against theft

If a policyholder’s car gets stolen, then a comprehensive car insurance plan will cover the entire losses due to theft. The car insurance company will compensate the policyholder as per the mentioned IDV in insurance.

6. Protection against natural calamities

This policy also acts as a cushion against natural disasters that can cause significant damages to a car. For example, uncalled for occurrences like floods, earthquakes and tsunamis can destroy a automotive beyond repair.

In such a situation, the policyholder will receive compensation for property damage which will help him/her complete the repairs without facing any financial burden.

7. Protection against man-made disasters

Apart from natural calamities, comprehensive insurance also provides coverage against man-made disasters such as riots, vandalism or terrorism. For such incidents, the insurance companies will compensate the policyholder so that he/she does not have to suffer any financial burden.

8. No claim bonus

A comprehensive car insurance policy also provides the benefit of NCB to policyholders. NCB is a bonus earned for not making any claim during a particular policy year. One can accumulate these bonuses, which leads to lowered premium amounts in the following year.

9. Provides add-ons

Policyholders also get the option to purchase add-on cover along with their comprehensive car insurance plan.

The primary motive of such add-ons is to provide extra coverage benefits to policyholders and hence come with additional costs. Here are a few popular add-ons that individuals can choose from:

  • Roadside assistance
  • Zero depreciation
  • Engine protection
  • Consumable expenses
  • Tyre damage cover

Individuals searching for comprehensive car insurance policies can conduct thorough research through leading online aggregators. They can compare different insurance companies and choose the one they prefer.

With such benefits, it is imperative to insure a car with a comprehensive insurance plan. However, before purchasing a policy, remember to conduct proper market research and read the terms and conditions to make an informed purchase.

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