When you purchase a vehicle, it’s a legal requirement in India to obtain an insurance policy for it. While third-party insurance is mandatory, opting for comprehensive car insurance is a choice. While third-party insurance may have some benefits, it often falls short in coverage. On the other hand, comprehensive car insurance provides an additional layer of protection, covering not only damages to third parties but also damages to your own vehicle. It offers coverage for both man-made and unexpected calamities such as road accidents, thefts, natural disasters, and fire accidents. In this article, we will explore why comprehensive car insurance is crucial and the advantages it offers.
Benefits of Comprehensive Car Insurance Policy
Comprehensive car insurance provides a wide range of coverage options to ensure your safety. It encompasses various risks, including damage to the vehicle, passengers, and valuables within the car, as well as damages caused to third parties. Let’s delve into the benefits of this policy in detail:
- Extensive Coverage: Unlike third-party car insurance, comprehensive car insurance offers the highest level of security for your vehicle. You have two options: you can either claim a reimbursement amount or have your vehicle repaired at a network garage without any cash outflow.
- Value for Money: Many people opt for third-party insurance due to its lower cost. However, despite the relatively higher premium, a comprehensive insurance policy provides better protection, making it a better value-for-money proposition. When considering the value it offers during the recovery period after an unexpected accident, it proves to be more economical than a third-party car insurance policy.
- Cashless Claims: A key advantage of a comprehensive policy is the facility of cashless claims. This allows you to get your vehicle repaired without having to pay anything upfront. Car insurance providers have tie-ups with network garages nationwide, and they directly settle the repair expenses with these garages (excluding consumables, depreciation, and deductibles).
- Addition of Riders: Unlike a third-party insurance plan, you can add riders to a comprehensive car insurance policy. Some of the best car insurance riders include personal accident riders, engine protection riders, and roadside assistance riders.
- No-Claim Bonus (NCB): If you refrain from making any claims during the policy period, you become eligible for a No-Claim Bonus. By not making an insurance claim for a year, you can receive an NCB bonus of 20%. This percentage increases to 25%-50% if you do not make a claim over the next two to five years. The NCB benefit is applicable to the individual and not tied to a specific vehicle, allowing you to switch vehicles while retaining the NCB. To avail of the NCB, it is necessary to renew your comprehensive car insurance policy.
- Theft Coverage: In the event of your car or its parts being stolen, a comprehensive policy covers the total loss incurred due to theft. The car insurer will provide full compensation for the loss, and if the entire vehicle is stolen, the entire Insured Declared Value (IDV) will be reimbursed.
- Vandalism Coverage: If your vehicle is vandalized during a riot or civil disturbance, a comprehensive car insurance plan fully reimburses the repair costs. If your car is damaged beyond repair, the insurance provider will offer you the market price of the vehicle.
- Financial and Legal Liabilities: In addition to vehicle damages, a comprehensive car insurance policy covers the legal liabilities that may arise from an accident. It not only provides the mandatory third-party coverage required by law in India but also offers coverage for financial and legal obligations during tribunal hearings related to accident cases.
The assurance and security provided by a comprehensive car insurance policy are unmatched. It ensures the highest level of protection for your vehicle and shields you from financial distress in the event of an accident.