If you are one of the many trying to understand why you need to invest in a comprehensive car insurance plan, this is where you will find your answers. In addition to being mandatory in India, having car insurance is extremely beneficial. It is your ‘cover’ against financial duress in the event of an accident, which causes harm to you, another person, and damage to property. With the availability of a number of options of car insurance online and car insurance renewal, it has become easy and hassle free to protect yourself and your vehicle.
The term comprehensive insurance is self-explanatory and comprises wide cover against damage caused to your vehicle in the event of road accident and because of incidents not involving road accidents. This insurance would also cover incidents of car theft, legal implications of damage to another, third party cover, and unintentional death or injury of another.
What Constitutes a Comprehensive Car Insurance Policy?
This policy is the top-level protection for a vehicle and provides cover against incidents that would otherwise cause financial stress to the owner of the vehicle.
Some of the essential features of comprehensive car insurance are:
- Damage protection caused by accidents even if the fault lies with you
- ‘Umbrella’ protection for your vehicle against theft and damages occurring due to natural disasters
- Possibility of additional covers for protecting the vehicle’s engine and zero depreciation
- Coverage of third party liabilities in the event of accidents without additional premium
- Insurance claim from insurer even if an accident was caused by your error
- Claim even if no fault can be placed – incidents for example where you return to your vehicle to find it damaged
More Reasons to Buy Comprehensive Car Insurance
Without comprehensive motor insurance, you could be exposed to financial risk that could leave you with long-term debt. Comprehensive car insurance provides that extra cover to give you optimum protection, peace of mind and a safeguard against unnecessary expenses on vehicle repairs.
This kind of motor insurance provides coverage for:
- Damage to glass
- Vehicle theft
- Acts of Vandalism
- Damage to the vehicle by falling objects
- Fire
- Flood
- Damage from inclement weather
- Damage caused to a third party
Normal Exclusions of Comprehensive Car Insurance
- Wear and tear and aging of the vehicle
- Value depreciation
- Damage to tubes and tyres
- Breakdown of the electrical or mechanical system
- Damage caused due to unlicensed driver
- Damage due to drunken driving or driving under influence of other intoxicating substances
- Loss or damage caused by nuclear war, riots, and war
Final Words:
It may seem that comprehensive car insurance is a lot more expensive than other types of insurance. However, in the event of an incident, a wide cover would prove extremely beneficial and cost effective. Choosing the ‘right’ cover depends on specific needs and requirements. Car Insurance is not a matter to be treated lightly – accidents happen without warning and can cause serious dents in one’s finances. If you own a high-end car, choosing additional cover such as engine protection would add to the robustness of the policy.
Given the large number of insurance providers and plans, it would be best to check the benefits, inclusions, exclusions, and other terms and conditions online to make an informed decision. There is also car insurance calculator and one-click renewal provision to ensure that your car insurance ‘journey’ is effortless and hassle-free.