Know About Full Coverage Car Insurance
When you buy car insurance, you expect more than just legal compliance.Read more
What is Full Coverage Car Insurance?
Full coverage car insurance is not a package or bundled policy, but rather a comprehensive car insurance policy that provides complete coverage. This car insurance policy offers compensation in the event of third-party liabilities and own damages caused to the insured vehicle. Full cover insurance is a combination of mandatory third-party insurance and the standalone own-damage cover.
While third-party insurance only covers damages caused to others, full coverage insurance extends protection and covers your vehicle against damages caused due to accidents, fire, theft, vandalism, and natural disasters.
With a full cover insurance for a car or also commonly known as comprehensive insurance, you can also purchase different add-on covers, such as zero depreciation, roadside assistance, etc., and insure your vehicle against common exclusions of a car policy.
What Does Full Coverage Car Insurance Include?
The full coverage car insurance covers the following damages:
- All third-party liabilities, such as death or disability or property damage
- Total or partial loss of the insured vehicle due to fire, self-ignition, or lightning
- Damages caused due to natural disasters like earthquakes, landslides, cyclones, etc.
- Losses due to manmade acts, such as riots, strikes, etc.
- Damages caused to the insured four-wheeler while it was in transit via rail, road, water or air.
- Damages caused due to accidents and collisions
- Damages caused due to theft and burglary
Add-Ons with Full Coverage Car Insurance
Policyholders can purchase the following add-ons with their full coverage car insurance policy to increase the protection of a standard policy:
- Zero Depreciation Insurance: The zero dep add-on ensures that the car insurance company does not deduct depreciation on parts repaired or replaced during an accidental claim, such as plastic, rubber, or fibre components.
- Engine Protection: This add-on protects your car's engine and gearbox from damage caused by water ingress, oil leakage, or hydrostatic lock. The engine protection add-on is especially useful in flood-prone areas.
- Roadside Assistance (RSA) Cover: With the RSA add-on policyholders can get round-the-clock assistance in case of breakdowns, flat tyres, dead batteries, or towing needs in the prescribed geographical area.
- Return to Invoice (RTI) Cover: The RTI cover compensates you with the car's original invoice value including road tax and registration charges if the vehicle is stolen or declared a total loss.
Please note that including these add-ons could increase your premium slightly. However, it will also give you extended coverage and reduce any out-of-pocket expenses if you file an accidental claim.
Who Should Buy Full Coverage Insurance?
Full coverage insurance is ideal for people with new or high-end car models. If you are living in in accident-prone or even flood-prone areas, you must opt for the full coverage insurance. This type of car insurance is also suitable for people who want maximum protection and minimal out-of-pocket expenses.
Car insurance companies also recommend the full coverage insurance as it protects you and your car along with third-party liabilities. It is an extended cover and ensures minimum expenses while settling a car insurance claims at a slightly higher premium than a standard insurance.
What is the Difference Between Partial and Full Coverage Car Insurance?
The table below highlights the difference between partial and full coverage car insurance plans in India:
| Parameter |
Partial Car Insurance |
Full Coverage Car Insurance |
| About Insurance Policy |
Partial car insurance is a standard and mandatory third-party insurance plan. It provides cover only for third-party liabilities. |
A full coverage car insurance policy is a comprehensive plan. It provides coverage to the policyholder for both third-party or own damages. |
| What Does It Cover? |
Any loss or damage caused to the third party by the insured vehicle in a road accident. |
A full coverage car insurance plan provides cover for any loss or damage caused to third-party as well as your damages incurred by the vehicle itself due to theft, accidents,natural and manmade calamities, etc. |
| Benefits |
If you accidentally hurt anyone on the road or damage their vehicle/property, your insurer will be liable to settle the claim. |
It provides cover against own damages as well as third-party liabilities. You can also accumulate the no claim bonus to get a discounted car insurance renewal premium for every claim-free year. |
| Limitation |
Does not provide cover for damages incurred by the insured vehicle. |
Premium is higher than third-party/partial car insurance |
| Premium Rates |
IRDAI determines the premium rates based on engine capacity, making it a cost-effective option. |
The premium rates of this insurance plan depend on several factors, including make, model, location, age, add-ons, and other relevant considerations. |
| Customization |
You cannot customize this insurance policy. |
You can customize this insurance plan by adding add-ons, such as zero-depreciation, breakdown assistance, etc. |
| When To Choose? |
If you own an old car and don't drive it often, this insurance plan is sufficient. |
If you have a new car, then it is recommended to purchase a full coverage insurance plan because it comes with better protection. |
How Much Does Full Cover Auto Insurance Cost?
The cost of full coverage car insurance depends on the coverage, plus other factors such as model, variant, any additional cover, engine capacity and RTO of your car. Moreover, different insurers charge different premiums based on the factors mentioned above. Therefore, it is best to compare car insurance plans online on an aggregator website like Policybazaar.com and choose the plan that best fits your needs and budget.
If you want to get an estimated insurance premium cost before purchasing a motor insurance policy, you can also use the car insurance premium calculator online.
