Comprehensive Car Insurance

Nowadays, the demand for cars is increasing due to increase in population leading to a higher risk of accidents. Therefore, it is important to buy a Car insurance policy to protect yourself from any future financial crisis. The Car Insurance policy provides coverage against any damages caused by the car to the third party liability or any damage caused to the car itself. There are two types of car insurance in India comprehensive car insurance and Third Party car Insurance. You can select any of them as per your needs and requirements. Under the Motor Vehicles Act, 1988, if you own a car it is mandatory to buy third party car insurance policy. Comprehensive car insurance, on the other hand, is optional but it provides wider coverage than third party car Insurance policy. It covers third party liability, theft and personal damages.

What Is Comprehensive Car Insurance?

The comprehensive Car Insurance policy provides comprehensive coverage to the policyholder. It includes the damages caused to a third party or third party property by the car of the holder of the policy in an accident as well the damages suffered by the policyholder himself and to his car. It gives wide coverage and extra benefits to the policyholder and also insures the covered car from theft or loss. The policy coverage can further be improved or enhanced by adding the add-ons riders such as engine protection, zero depreciation cover, pillion rider, roadside assistance rider, accessories cover and medical expenses. It is a highly popular car insurance plan as it gives full coverage from the financial outflow and ensures that the policyholder is stress-free. Comprehensive car Insurance policy mainly covers the following:

1. Third-party liability- It covers all the damages caused by the car to the third party or to the property of the third party due to an accident. The third-party liability under this insurance plan is unlimited and all the damages arising will be paid by the insurance provider.
2. Own damages- It covers the damage caused to the car due to natural or man-made calamities.
3. Theft or loss of the car- In case of your car being stolen or lost, you will be compensated by the insurance company if you have a comprehensive car insurance policy for the stolen or lost car.
4. Personal accident cover – personal accident cover covers accidental death and disablement suffered by the owner/driver of the car. It pays a lump sum benefit in either death or disablement which provides the car owner with financial assistance.

Features of Comprehensive Car Insurance

Comprehensive Car Insurance is the highest protection form which can be brought by you for your car. The key features of the Comprehensive Car Insurance policy are as follows:

1. It offers coverage of liabilities of the third party in case of damage caused in an accident by the car without any additional premium.
2. It allows the policyholder to claim the damages caused to the car in an accident even if it is the policyholder’s fault.
3. The policy also offers protection for the owner/driver of the car from injury or death due to an accident.
4. It offers coverage for in-transit damages caused to the car while transportation by rail, road, air, lift etc.
5. Comprehensive Car Insurance has higher premiums than the third party but if you compare the coverage and benefits then the comprehensive car insurance policy is complete coverage at a low premium cost.
6. It facilitates the addition of add-ons to increase the coverage by paying additional premiums.

Documents required for buying a Comprehensive Car Insurance

If you are planning to get a comprehensive car insurance policy, keep these following documents to buy a comprehensive car insurance policy ready:

1. Copy of vehicle’s Registration Certificate (RC) for both old as well as a new car.
2. In the case of a new car, the printed copy of the invoice is to be submitted
3. In the case of renewable the insurance policy of an old car, the previous insurance policy documents are also required to be submitted.
4. No claim bonus reserving letter is also required to be submitted, whenever required.

Benefits of Comprehensive Car Insurance

Comprehensive Car Insurance policy is complete coverage for you and your car in the event of an accident. The benefits of a comprehensive car insurance policy are as follows:

1. Besides covering the mandatory third-party liability, a comprehensive policy covers the damages suffered by the car allowing you a wider scope of coverage
2. It gives peace of mind and financial security and protection to the holder of the policy as it protects you for the sudden financial crisis
3. Comprehensive car insurance policy facilitates the addition of various add-on rider by payment of low additional premium. You can enhance the coverage of your comprehensive car insurance policy and include various other benefits in one policy. The riders that are available with the comprehensive car insurance policy to be added are roadside assistance rider, the pillion rider, engine protection, zero depreciation and many more.
4. There is a no claim discount allowed under comprehensive plans if no claims are made in a policy year. This discount starts at 20% and can go as high as 50%. This discount reduces the renewal premium payable for the policy
5. Besides the no claim discount, comprehensive car insurance plans also allow various other discounts which help in reducing the premium payable for the policy.

Conclusion

Under The Motor Vehicles Act, it is compulsory to buy third Party Insurance for all the vehicles which cover the liabilities of the third party. However, such plans do not cover the vehicle itself. Therefore, it is a better option to buy Comprehensive Car Insurance as it gives wider coverage compared to third party Insurance. In this situation of such a higher risk of accidents, it is necessary to ensure financial protection for your car as well as the driver/owner in the event of any mishap. Hence, it is advisable to buy a comprehensive car insurance policy and secure yourself from the future financial outflow and ensure complete financial security to you and your car from any road accident.