Comprehensive car insurance, as the name suggests, offers expansive insurance coverage for the insured vehicle. It covers both third-party liability and own damage of the insured vehicle to ensure complete protection.
Though it comes at a higher price than third-party liability insurance, the coverage it offers is worth the expense. It covers the damages and losses caused to the insured vehicle due to an accident, natural disaster, or theft.
If you are planning to insure your car, keep reading to learn more about the benefits, coverage and exclusions of comprehensive car insurance.
What are the Benefits of a Comprehensive Car Insurance Policy?
Comprehensive car insurance offers the following advantages:
- Offers All-round Protection
It covers the damages and losses of the insured vehicle, owner, as well as third-party liabilities. Thus, you can comply with the Motor Vehicles Act, 1988, for third-party protection while safeguarding your own vehicle.
- Protects Against Unforeseen Events
If your vehicle is damaged due to an accident, riots, natural disaster, or even stolen, comprehensive car insurance will compensate for the losses incurred.
- Offers Financial Protection
If your car is involved in an accident, it can lead to expensive medical and repair bills. With comprehensive car insurance, you can seek financial assistance to cover such hefty bills.
- Improves Resale Value
Second-hand car buyers prefer vehicles insured with a comprehensive car insurance plan as it offers all-in-one protection.
- Provides Peace of Mind
When you have a comprehensive policy, you can rest assured that any damages or losses caused to your vehicle will be covered financially. This reduces the stress while driving your car, allowing you to enjoy the journey.
- Customisable
You can customise the benefits of your comprehensive car insurance by adding preferred add-ons or riders. For instance, if you opt for a roadside assistance rider, you can seek mechanical support from the insurer in case of any breakdown in the middle of the road.
What is Covered Under a Comprehensive Car Insurance Policy?
Vehicle owners buying a comprehensive car insurance policy should have a clear understanding of its inclusions to avoid last-minute claim-related hassles. So, here are the inclusions of a comprehensive car insurance policy:
- Third-party damages and losses
- Partial and permanent disability due to accident
- Damages caused to a third-party property
- Accidental death
- Damages caused to own vehicle due to theft, natural disasters, fire, vandalism, riots, etc.
What are the Exclusions of a Comprehensive Car Insurance Policy?
Apart from the coverage, a car owner should also be aware of the exclusions of a comprehensive plan to avoid claim hassles. Here are some of them:
- Damages or losses incurred to the insured vehicle if the driver does not have a valid driving license
- If the driver was intoxicated or under the influence of drugs or alcohol during an accident, any damage caused to the vehicle will not be covered under insurance.
- Coverage is not applicable for damages caused by nuclear war.
- If your vehicle is damaged outside the policy-mentioned geographical limit, coverage is not applicable.
- No coverage for electrical or mechanical breakdowns or standard wear and tear.
Conclusion
Comprehensive car insurance is not only a legal requirement like third-party insurance. It provides complete protection to the vehicle and owner from various risks. Thus, car owners should understand the features and aspects of a comprehensive plan to make informed insurance decisions.