Comprehensive Car Insurance

Posted on Feb, 2020

What Is Comprehensive Car Insurance?

A car is one of the first things one hopes to buy as soon as they begin earning. It is a vehicle that provides a sense of independence – allowing you to drive on your own time, without depending on public transportation. When you bring home your dream car, you must take all measures to safeguard it. No, we are not talking about the lime and chillies and coconut rituals which are so popular in India – we are talking about investing in a comprehensive car insurance policy. Here are all the essential facts you should know about a comprehensive insurance policy.

What is a comprehensive insurance policy?

A comprehensive insurance policy is a type of insurance policy which provides all-round legal and financial coverage to the policyholder. Such a policy covers you against various kinds of damages endured by your vehicle in an accident or other circumstances. Unlike a limited liability policy, which covers only the third party and their vehicle in case of an accident; a comprehensive insurance policy covers both – the policyholder and the third party. Apart from accidents, a comprehensive insurance policy also provides coverage against damages endured by your vehicle in case of natural calamities and manmade nuisance.

Understanding a comprehensive car insurance policy

A comprehensive car insurance policy is regarded as the best kind of insurance if you want to ensure total coverage for your car. Such a policy protects the policyholder and the vehicle owned by the policyholder under various circumstances. The primary objective of this kind of insurance policy is to safeguard your legal and financial liabilities should something happen to you, your car or another party in an accident. Also, you can add several additional riders to a comprehensive policy based on your requirements.

Coverage offered under comprehensive car insurance policies

Having explained comprehensive insurance meaning, let’s find out the coverage provided under this policy. As the name suggests, a comprehensive plan is one in which the policyholder is covered against a comprehensive range of on and off-road incidents. Here’s a list of things covered under a comprehensive car insurance policy:
  • Coverage against the losses or damages endured by the vehicles and/or properties of the third party, in case of an accident.
  • Coverage against a wide range of natural disasters or ‘Acts of God’ in which the policy holder’s car is damaged or destroyed, for instance, storms, floods, fire, earthquakes, tornadoes, tsunamis, and hurricanes and so on.
  • Coverage against all kinds of manmade incidents resulting in the loss or damage of the car, for instance, car theft, burglary and vandalism or destruction of the car as a result of manmade incidents such as riots, strikes, terrorist activities, etc.

What is not covered under a comprehensive insurance policy?

There are a few basic things that are excluded or not covered under a comprehensive insurance policy. They are as under:
  • Wear and tear of the car which is a direct result of ageing and regular use
  • The mechanical or electrical breakdown of the car owing to daily use
  • The depreciating value of the car
  • Damages endured by the tyres and tubes of the car when an accident has not taken place
  • Damages suffered by the car while the policyholder is driving it without a driver’s license (valid or expired) and RC book
  • Accidents or Damages endured by the car if the policyholder was found driving while under the influence of alcohol, drugs or other such intoxicating substances.

Things to remember:

  • Every premium is different

    When it comes to a comprehensive insurance policy, no two premiums are the same. The insurance provider charges a premium based on several factors, including the make and model of the car, the city in which you live, your driving record, etc.

  • You can purchase add-on riders

    You can increase your insurance coverage by purchasing different types of add-on riders like engine protection cover, personal and passenger accident cover, return to invoice cover, road-side assistance cover, etc.

  • You can avail no claims bonus

    Insurance companies reward policyholders for not filing insurance claims. Upon renewing your comprehensive insurance plan, you can get a NCB discount of 20% to 50% on your motor OD premiums for not filing a claim for 1 to 5 consecutive years.

How to buy a comprehensive insurance policy instantly?

Buying a comprehensive vehicle insurance policy is rather easy. There are 4 ways in which you can purchase your comprehensive car insurance policy. They are as under:

  1. You can buy your comprehensive insurance policy offline by visiting the nearest branch or office of your preferred insurance provider.
  2. You can also buy car insurance online directly through your preferred insurance provider’s website.
It is better to purchase your insurance policy by visiting your insurance provider’s office, so that you can thoroughly understand the inclusions and exclusions and terms and conditions of the policy. If you are pressed for time, and are comfortable with buying insurance online, you can do so directly through the insurance providers’ websites. We suggest you opt for a comprehensive insurance policy from PINC Insurance as they will guide you on your insurance journey.