Imagine this scenario: You have stepped out of your house after a storm and witnessed your car damaged—thanks to a branch falling on it. What will protect your car now? Moreover, how will you cover the damages to your car? You will need a financial safety net that you can rely on. Here is where comprehensive car insurance steps in—effectively providing you with the financial relief you desire. But it doesn't stop there—this insurance policy is here to offer you protection from all angles, even if your car has been damaged on account of an accident, theft, fire or other natural calamities.
A comprehensive car insurance, as the name suggests, is a motor insurance policy designed to offer comprehensive protection for car owners against financial losses for their own vehicle as well as third-party liabilities. Insurance companies offer compensatory relief, such as vehicle repair or part replacement (depending on the total or partial damage of the vehicle).
Unlike a third-party insurance that covers only damages to others, or own-damage insurance that covers only your vehicle—comprehensive insurance stands out as covering both types of damages, protecting you against a wide range of unforeseen risks, including accidents, theft, fire, natural disasters, and vandalism.
Let us check out the key differences between the three policies to see what each has to offer:
| Key Feature | Third-Party Car Insurance | Own-damage Insurance | Comprehensive Insurance |
|---|---|---|---|
| What it Means | Covers damages to others | Covers damages to your own vehicle. | Covers both own vehicle and third-party liabilities |
| Legal Requirement | Required by law as per the Motor Vehicles Act 1988. | Not required by law. | Not required, but highly recommended. |
| Premium Amount | Lower premiums | Moderate | Higher premiums due to extensive coverage. |
| Scope of Coverage | Injury, death, or property damage to a third party | Damage to your vehicle only | Accidents, theft, fire, natural & man-made disasters |
| Add-on Covers | Not available. | Limited | Multiple add-ons available, such as Zero Depreciation, Engine Protection, and Roadside Assistance |
| Personal Accident Cover | Available separately | Available separately | Often included or made available as an add-on. |
That is why, a third-party or own damage protection will provide only partial protection, exposing you to more risks—while comprehensive insurance ensures 360-degree protection, ensuring significant protection but at slightly higher premiums.
Here is a look at the key benefits offered upon owning a Comprehensive Car Insurance:
In case there are damages sustained by your own car on account of accident, theft or other disaster, this policy offers protection against damage to your vehicle.
Damages caused to third parties by your insured car, be it injury, death or property damages, are effectively covered under this policy.
A natural calamity may strike at any time. This is why comprehensive car insurance offers protection against not just natural but also man—made calamities, including events such as floods, earthquakes, theft, riots, and vandalism.
A comprehensive insurance policy allows you to select multiple add-on covers that help enhance the value of your policy, impacting your coverage level, at the cost of slightly higher premiums.
Upon purchasing a comprehensive car insurance policy, you are provided with the No-Claim Bonus (NCB) benefit. Simply, this benefit allows you to get a discount on the premium during your policy renewal for every claim-free year.
At the time of claim settlement, this policy allows you to visit any authorised garage listed under your insurer's network of cashless garages and get your car repaired. The insurer will directly settle the amount with the garage, without you having to cover any expenses.
An add-on cover helps increase the benefits of your insurance policy, strengthening its overall coverage level.
While purchasing your comprehensive insurance, ensure to select the add-ons that are best suited for you to enhance the value of your policy. Here’s a look at them:
This cover is beneficial at the time of claim settlement, as it enables your insurer to pay the full costs for car parts without considering the depreciation value of the car.
This cover aids in covering the costs to replace or repair the engine and gearbox, in case of unforeseen circumstances like water ingressions, oil leakage, etc.
This cover provides 24/7 assistance in case your car suffers a sudden breakdown in the middle of the road due to an empty fuel tank, vehicle lockouts, flat tyres, etc. The services included under this cover are towing, fuel delivery, minor repairs, etc.
At the time of claim, in case of total loss or theft of your car, this cover allows the insurer to pay the original invoice value, which is ideal for new car owners.
Once you opt for this cover, it reimburses the amount spent on consumables such as lubricants, nuts and bolts, engine oil, screw, oil filter, etc. at the time of repair.
This is a compulsory add-on cover provided with comprehensive car insurance. This secures your policy further by providing the owner with coverage in case they face injury, disability or death due to a car accident.
Always double-check the terms mentioned under your policy. By checking the fine print of your policy, you can get a clear idea about the coverage that your policy has to offer.
Here’s what is covered in general:
Covers damages arising to own vehicle on account of accident, theft, fire, natural/manmade disasters, falling objects and animal damage.
Covers compensation for property damages to third parties or legal or financial expenses arising due to injury or death of the third party.
Covers damages not just to your own vehicle, but to the driver as well, in case of injury, disability or death during driving.
Based on the type of additional add-on you choose, like zero deprecation, roadside assistance, engine protection, consumables, etc, the services offered by this add-on will be covered.
Here is what's not covered in general:
If the driver is found without a valid driving licence, no expenses will be covered for damages or losses arising out of it.
If the driver is caught under the influence of alcohol, any damages or losses arising from it will not be covered.
Repairs will have to be paid from your own pocket if the car faces regular wear and tear.
Unless incorporated as an add-on, the policy will not provide compensation for the depreciated value of a car.
In case the car faces an electrical or mechanical breakdown, the expenses arising from it will have to be paid by you.
Causing harm to your car on purpose, by doing things you logically should not do. An example of such negligence is taking the car out for a drive during a flood.
Damage to the car occurring in case of nuclear risk, war-like situation or mutiny will not be covered.
The estimation of the premium for your comprehensive car insurance policy depends on a list of factors. These are:
Based on the make/model, age and engine capacities of the vehicle, the premiums may differ:
High-end/luxury or high-performance cars will have significantly higher premiums than affordable cars.
The newer the vehicle, the higher the Insured Declared Value (IDV) will be, resulting in higher premiums, as older cars will depreciate in value over time.
Due to higher risk and repair costs associated with larger engine capacities, premiums will be higher.
The geographical location will impact your car insurance policy's premium. Cars registered in urban areas will have higher premiums, while those in rural areas will have lower premiums.
The more add-on covers chosen (like zero depreciation, engine protection, roadside assistance, return to invoice), the higher the increase in premiums.
This is a reward for not making any claims during a policy year, impacting the discounts on renewal premiums. The more claim-free years you have, the higher your NCB and the lower your renewal premium.
Need help buying and renewing comprehensive car insurance online? Coverfox makes the process a lot simpler—through a few simple steps to follow:
These are the documents you should have at your side while carrying out either of these two processes:
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Need a comprehensive insurance plan that is worth your money? Coverfox is your ideal go-to online platform to select the best comprehensive car insurance plan that is tailor-made for you. In just a few simple clicks, you are provided with policy options from top insurers—allowing you access to instant quotes while evaluating key aspects like premiums, coverage, add-ons, and claim settlement ratios offered by each. What's more? You can also view a list of network garages offered by each insurer.
Now, all you have to do is sit back and compare the plans to select the best one suited for you, based on your needs and budget, while Coverfox takes care of the rest, allowing you instant coverage and hassle-free documentation.
Here’s why you should go ahead and consider Coverfox as your reliable Insurance platform:
A comprehensive car insurance policy is mainly important for these people:
Just learned how to drive a car and are struggling on the roads? This insurance policy provides you with the safety net that takes your worries away, in case of an increased risk of an accident.
If you are a car driver living in an area prone to vandalism, high traffic or risk of natural calamities, then this insurance is the means to safeguard your vehicle.
If you find yourself frequently driving your car over long distances, whether for work or leisure, this policy allows you to travel with peace of mind against unforeseen risks on the road.
For premium or high-end cars, because of their expensive parts, the costs of repairs are through the roof. This policy is a crucial means to avoid those hefty expenses.
In case your vehicle is involved in an accident or stolen/damaged, you will be required to file a claim with your insurer. The process for registering a claim is made even simpler with the help of Coverfox.
To file a successful car insurance claim, you will require the following documents:
Support: Get in touch with Coverfox for more guided assistance with a few contact details to help ease your queries.
Contact us here:
Phone number: 022 4897 1018
Email:help@coverfox.com
Comprehensive car insurance offers protection from all angles, including covering own damage, third-party liabilities and damage arising due to natural calamities. It also offers personal accident cover to safeguard the driver from injury, disability or death arising from an accident.
No, comprehensive insurance is not mandatory. However, it is highly recommended due to its extensive coverage benefits.
The premium for comprehensive car insurance is calculated based on factors such as the make and model of the car, geographical location and add-on covers incorporated.
Yes, add-on covers like zero depreciation can be added to your policy. This helps the insurer pay the full reimbursement during claims, without considering the depreciated value of the car.
In case policy renewal is delayed and policy lapses, the following occurs:
