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What is Comprehensive Car Insurance?

A comprehensive car insurance covers you for damages caused to your own car which could range from: dents caused by another car during a road accident or your windshield getting broken or your car getting stolen. Other than damages, a comprehensive car insurance helps you cover damages/ injuries caused to a third-party. Here are some instances:

  • Road Accidents
  • Theft
  • Fire
  • Vandalism
  • Falling Objects
  • Damage done to your car by animals or wildlife
  • Natural Disasters
  • Civil Disturbances

Having just a third-party insurance won't cover any of these damages/losses to your own car. Thus, having a comprehensive insurance cover is a matter of convenience.

Did you know?

You can check the list of perils covered by your comprehensive car insurance by simply reading the policy wordings. It's not just convenient, but also advisable!

Why Comprehensive Car Insurance?

While it's practical and simpler to go for comprehensive cover, it includes a host of benefits to make your decision even easier:

It's easily affordable.

Price wise, comprehensive covers are more economical and cost-effective than a third party one.

Hassle-free.

It saves you from a lot of stress in a tough situation, and also ensures you much-needed peace of mind.

Covers various instances.

Right from theft and fire, to liability to third parties in case of an accident.

But Should I Upgrade?

In one simple word, Yes.

You're already paying for an insurance that provides cover for third-party damages. It makes better sense in spending a little extra to cover a whole list of possible accident situations.

Moreover, claiming on your comprehensive car insurance for damages to your own car is less complicated than you can imagine.

But do keep in mind, there are still some instances NOT covered under a comprehensive cover. These exclusions are:

  • Mechanical or on-road electrical breakdown
  • General ageing, wear and tear
  • Damages caused by driving under the influence of narcotics or alcohol.
  • Damage caused by driving without a valid driving license
  • Consequential loss
  • Loss damage outside areas mentioned in the policy document

It's any day advisable to switch from third-party to a comprehensive insurance cover. Want to know why and what happens when you switch? Check ahead!

What Is Covered by Comprehensive Car Insurance?

Before you select a comprehensive car insurance plan, you should be aware of the inclusions and exclusions of the policy to be able to take a well informed decision. Here are the natural and manmade disasters that comprehensive car insurance policies usually cover:

  • Damage caused by natural calamities
  • Fire
  • Vandalism
  • Theft
  • Damage to third party
  • Damage to your insured car due to civil disturbances like riots
  • Damage to your insured car as a result of external objects like trees

Why Comprehensive Car Insurance is Better?

Here is why comprehensive cover is a better option over third-party insurance:

Expensive? Not Really!

A comprehensive cover might seem a bit more expensive than third-party insurance. However, once you compare the damages they cover, the difference in price is negligible.

Covers your Car too!

A third-party insurance does not cover damages done to your vehicle; all claims are in favor of the other party. A comprehensive insurance policy covers your car too.

Enhance Coverage

Buying just a third-party insurance cover limits your coverage options. With a comprehensive car insurance, you can also buy add-ons to enhance the coverage.

Is Comprehensive Car Insurance More Expensive Than Other Types of Car Insurance Policies?

The general concept is that comprehensive car insurance policies are more expensive than other car insurance categories like Third Party Liability Only. It may be priced higher than other types of car insurance policies, but it does not hold true always. Therefore, it requires thorough research for car owners and comparison between different types of insurance plans to select one that offers the maximum benefits against low premium. You might just find that a comprehensive car insurance policy might turn out to be a more cost-effective plan as compared to other policies.

As a result of the misconception that third party covers and other car insurance plans are more affordable than comprehensive car insurance, car owners tend to opt for other options, even before thinking over a comprehensive plan.

Add-ons for Your Comprehensive Car Insurance

Did you know that you could extend your car insurance coverage by opting for add-ons that you need to pay for? The cost of these is added to your premium amount. But they increase your financial coverage substantially.

Zero Depreciation: This is one of the most popular add-ons considering vehicles and its parts are subject to depreciation. You can read more about zero depreciation here.

NCB Protect: Insurance companies offer you a bonus for every year you don't make a claim, this is known as a No-Claim Bonus (NCB). But the year you make a claim, NCB falls back to zero. With NCB Protect, you can claim without affecting your NCB.

Engine and Gearbox protection: This covers damages caused to engine parts and the gearbox of your car. They may occur due to leakage of lubricating oil, water seepage, etc. to name a few.

Understand your car's needs and upgrade it's insurance cover.

FAQs on Comprehensive Car Insurance

Should I opt for a comprehensive car insurance or just a third-party policy?

As per the Indian law, it is mandatory for all vehicles operating on public roads to have Third Party Liability Insurance. However, a comprehensive car insurance policy covers injury and damage costs. This is both to your vehicle as well as to the other/third party involved. So, the latter is advisable.

Can I switch from third-party insurance to comprehensive insurance? What documents should I submit?

Yes, you can easily switch from third-party to comprehensive car insurance. You can call and inform Coverfox at 022-39178008 or write to us on help@coverfox.com. You also have to submit a copy of your previous year’s policy document and copy of your car’s RC (Registration Certificate).

An inspection team would be sent to inspect your car. After inspection, once approved, you’re eligible to receive comprehensive car insurance. The IDV would depend on the age, condition of your car, and its engine capacity.

How are claims under comprehensive car insurance settled?

The most important step is to notify the insurance company at the earliest. You can then proceed to registering an official claim by submitting the required documents. Some of them are claim form, vehicle registration, FIR (if applicable) and so on, to the insurance company. Some insurance companies also allow online claim registration.

What are the documents required to buy car insurance in India?

The documents required to buy car insurance are as follows:

  • Copy of vehicle’s Registration Certificate (RC)

  • Invoice copy for a new car

  • Previous insurance policy

  • No claim bonus reserving letter, whenever required

As you compare car insurance policy of one provider with another, make sure to check the list of documents required by every insurer. This way you can be prepared to hand them over when you buy car insurance.

Does car insurance cover natural disasters?

A comprehensive car insurance policy can cover your vehicle against damages resulting from certain natural disasters. Generally, such car insurance policies cover damages caused by floods, heavy rains, or earthquakes are covered. However, damages due to natural disasters will not be covered under third-party insurance.

Prior to buying car insurance, make sure to enquire about what’s covered and what’s not. It is advisable to go for a comprehensive car insurance plan that covers the most contingencies as this adds to the financial security.

Does your car insurance cover animal attack?

Most comprehensive car insurance policies cover damages done by animals. Generally, such car insurance policies cover animal attacks, animal collision and damage caused by rodents and pests. However, damages caused by animal attacks will not be covered under third-party car insurance.

Before buying a car insurance policy, make sure to enquire about what’s covered and what’s not. It is advisable to go for a comprehensive car insurance plan that covers the maximum number of contingencies, as this adds to the financial security.

Is comprehensive car insurance policy compulsory for car owners?

The Motor Vehicles Act, 1988, makes it mandatory for all car owners to buy a Third Party Liability Only insurance plan. Third Party insurance is the basic plan that financially protects the insured car owner against death and injuries as a result of an accident caused by an insured car to the third party.

Comprehensive car insurance offers coverage to the insured vehicle, owner-driver and hired individuals who might be present at the time of an accident. Thus, it financially protects the interests of the car owner.

What does Comprehensive Car Insurance not cover?

The exclusions of Comprehensive Car Insurance plans offered by insurance companies usually are:

  • Normal wear and tear of the insured car vehicle
  • Damage caused to tyres and tubes (In case the insured car is also damaged, the insurance company will be liable to pay a maximum of 50% of the replacement cost)
  • Depreciation in value of the car
  • Mechanical and electrical breakdown
  • Damage arising due to driving under the influence of liquor or drugs
  • Damage caused by an individual driving without a valid driving license
  • Destruction or loss of the insured car caused by war, nuclear risk, riots, and similar other incidents
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