Why Comprehensive Car Insurance Is a Must-Have Protection

Understanding why comprehensive car insurance is necessary and the benefits that it provides.

First Published Jun 15, 2023, 12:59 PM IST | Last Updated Jun 15, 2023, 12:59 PM IST

As soon as you buy a motor vehicle, you are legally obligated to buy an insurance policy for it in India. You have to buy a third-party mandatorily but getting a comprehensive car insurance policy is optional. Although third-party insurances are good, they fail to cover some key aspects and fall short at times. However, with a comprehensive insurance policy, you get an additional layer of protection. You are covered not only for third-party damages but also for your own damages. In addition, man-made as well as unexpected calamities like road accidents, thefts, natural accidents and fire accidents are covered in a comprehensive car insurance policy. In this article, we will try to understand why comprehensive car insurance is necessary and the benefits that it provides.

Benefits Of Comprehensive Car Insurance Policy

Comprehensive car insurance offers a wide range of coverage options to make sure you are safe. It covers a variety of risks including the vehicle, passengers and any valuables in your car as well as the damages that are caused to a third-party. Let us now see some of the benefits that the policy offers in detail:

Superior coverage: Unlike a third-party car insurance policy, a comprehensive car insurance plan provides the highest level of security to your vehicle. You have two options - you can either claim the reimbursement amount or take the vehicle to a network garage for repairing your vehicle cashless.
Value for money: A lot of people opt for third-party insurance policy just because it is cheaper. Although the premium of a comprehensive insurance policy is comparatively higher, it offers better protection, thereby making it a better value for money deal. If we look at the value that it provides in the period of recovery from an unexpected accident, it is more economical and is better than a third-party car insurance policy.
Cashless claim: A key benefit that a comprehensive policy offers is the facility of cashless claims. With this, you can get your vehicle repaired without you having to pay for anything. For this, the car insurance providers have tie-ups with garages called network garages across the country. The insurer will pay the network garages directly for all the expenses that are incurred on repairs (excluding consumables, depreciation and deductibles).
Addition of riders: You can add riders in a comprehensive car insurance policy, something that you cannot do with a third-party insurance plan. Some of the best car-insurance riders are personal accident riders, engine protection riders and roadside assistance riders.
No-claim bonus: If you do not make a single claim during the entire car insurance plan period, you will be eligible for a No-Claim bonus or NCB. You can get a NCB bonus of 20% by not making an insurance claim for a year. This percentage increases to 25%-50% in case you do not make a claim in the next two-five years. The perk of NCB is linked to the individual and not the vehicle so you can change your vehicle too. NCB benefit is applicable only to those who renew their comprehensive car insurance policy.
Coverage against theft: In case your car or any of its parts gets stolen, then this policy will cover the total loss that you incurred because of the theft. The car insurer will offer you full compensation for the loss and if your entire vehicle gets stolen, then the entire IDV will be provided as compensation.
Vandalism coverage: If your vehicle is vandalised in an unexpected event of riot or civil disturbance, then the comprehensive car insurance plan will give you full reimbursement for the repair of your damaged car. If your car is damaged beyond the point of repair, then the car insurance provider will offer you the market price of the vehicle.
Covers financial and legal liabilities: In addition to covering the damages to the vehicle, a comprehensive car insurance policy also covers the legal liabilities that might arise in case of an accident. It not only provides the third-party coverage that is made compulsory by the law that is required to drive in India but also covers financial and legal obligations in case of tribunal hearings In case of accident-related cases.

The assurance and security that a comprehensive car insurance policy provides is unparalleled. It provides the highest level of protection for your car and helps you from financial distress during an accident. There are a lot of car insurance providers who offer comprehensive insurance policies so make sure to do due research before you pick the best car insurance in India.

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