Comprehensive Car Insurance

What is Comprehensive Car Insurance?

Comprehensive car insurance is a type of motor insurance policy for private cars that provides complete protection to the insured vehicle from all kinds of risks, such as accidents, theft, third party liabilities, natural calamities, etc. It helps to get compensation for repairing or replacing your car in case any unpredictable mishap occurs resulting in its loss or damage. With this type of four-wheeler insurance, you will also be entitled to receive financial aid from your motor insurance company to get your car repaired or replaced in case of a partial or total loss of your car.

Comprehensive insurance coverage for a car includes both own damages cover as well as third party liabilities cover. That’s not all. This type of insurance also offers a personal accident cover to the owner-driver of the car in case he/she gets injured in a car accident.

Coverage Under Comprehensive Car Insurance

A comprehensive insurance policy provides extensive coverage to the insured car from a variety of adversities.

Comprehensive Car Insurance: Inclusions

Take a look at the list of damages covered under comprehensive car insurance:

• Accidental Damages – If your car suffers from any loss or damages following an accident, this car insurance plan will cover it for you.
• Fire Damage – In case your car catches fire, this motor insurance policy will cover any loss or damages resulting from it.
• Car Thefts – If your car gets stolen, your motor insurer will compensate you with its current market value (IDV) if you have a comprehensive car insurance policy.
• Damages Due to Natural Calamities – In case a natural calamity strikes your neighborhood damaging your car partially or completely, then this insurance will cover the damages or losses incurred. Natural calamities include cyclones, floods, earthquakes, landslides, etc.
• Third-Party Losses – This car insurance will cover any third party damages or losses caused by your car, including property damages, bodily injuries or death of a third party person.
• Damages Due to Manmade Hazards – If your car gets totally or partially damaged following a manmade hazard, your car insurance policy will cover the damages or losses incurred. Manmade hazards include strikes, terrorist activities, riots, etc.
• Vandalism – If your car gets damaged or suffers from a total loss due to vandalism, this policy will pay for the repairs or losses incurred.
• In-transit Car Damages – In case your car gets damaged while being transported via land, water or air, your motor insurer will pay for its repairs under this car policy.
• Personal Accidental Injuries or Death – A comprehensive four-wheeler insurance policy not only covers the car from any damages or losses but also provides coverage to its owner-driver in case he/she gets injured or dies in a car accident.

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Comprehensive Car Insurance: Exclusions

Not everything is covered by comprehensive car insurance. Take a look at what is excluded under a comprehensive insurance policy:

• Drunk Driving – It does not cover any damages or losses incurred if the driver was caught driving the insured car under the influence of alcohol.
• Depreciation – If the value of your car gets depreciated, this insurance cover will not compensate for it.
• Contributory Negligence – It does not cover any loss or damages to the insured car due to contributory negligence on your part. For example, taking your car near the low-rise areas despite a cyclone warning.
• Electrical & Mechanical Breakdown – If the insured car suffers from an electrical or mechanical breakdown, then you will have to pay for the resultant expenses on your own.
• Driving Without a License – It does not cover any damages or losses incurred if the driver was found driving the insured car without a valid driving license.
• Normal Wear & Tear – In case you suffer any loss or damages due to the regular wear and tear of your car, then you will have to pay for them on your own.
• Consequential Damages – It does not cover any consequential loss or damages suffered by the insured car. For example, damage to the tyres while the car is being towed.
• Non-accidental Damages to Tyre/Tube – It does not cover any loss or damages to the tyre or tube of the insured car, which is not a direct result of a car accident.
• Driving Without Valid License Holder – If you have a learner’s license and are found driving the car without a valid driving license holder, then you will have to pay for the resultant damages or losses on your own.
• War or Nuclear Perils – It does not cover any loss or damages caused to the insured car as a result of war, war-like operations, nuclear weapons or other related perils.

Add-on Covers Under a Comprehensive Car Insurance Policy

A comprehensive motor insurance policy can be customized to increase the level of protection for your car with the help of add-on covers. An add-on cover offers additional coverage to your car on payment of an additional premium price.

Here are some of the most common add-on covers that motor insurance companies offer in India:

• Zero Depreciation Cover – This cover enables you to avoid paying for the depreciating value of your car at the time of claim settlements. It is available only for cars that are less than five years old.
• Tyre Protect Cover – With this cover, the tyres of your car will be protected from any loss or damages in all non-accidental situations and not just during an accident.
• Return to Invoice Cover – This cover allows you to get an insured declared value (IDV) equal to the invoice price of the car in case of total loss claims instead of the car’s current market value. This cover is ideal for car owners who've just bought a new car.
• Breakdown Assistance Cover – With this cover, you will be able to access roadside or breakdown assistance from your motor insurer in case the insured car gets stuck in the middle of the road due to a flat tyre, empty fuel tank, loss of keys, etc.
• Consumable Cover – This cover ensures that all the consumables used in the repairs of the insured car, such as washers, nuts, coolant, bolts, engine oil, etc. are covered under the comprehensive car insurance policy.
• Engine & Gearbox Protection – With this cover, the cost of repairing or replacing the engine and gearbox of the insured car will be covered in all situations and not just in a car accident.
• Conveyance Benefit – This cover makes you eligible to receive a daily conveyance allowance from your insurer to commute by other means of transport while the insured car is getting repaired at a network garage.
• Key Replacement Cover – With this cover, you will be able to get the replacement keys of the insured car at the earliest in case you have lost its original keys.
• No Claim Bonus Protection – This cover protects your No Claim Bonus or NCB and allows you to move to the next NCB slab even if you raise a claim during your policy term.
• Passenger Cover – With this cover, your comprehensive motor insurance policy will not only cover you in case the insured car meets with an accident but also the passengers riding in your car.

Benefits of Comprehensive Car Insurance

When driving a car, you and your vehicle are vulnerable to a variety of risks. While you may be confident about your driving skills, it is always better to stay protected from any risks that other people or nature poses to your car. Besides, third party car insurance provides only half the protection, keeping your car exposed to other kinds of risks. This is why buying comprehensive vehicle insurance becomes necessary.

To understand it better, take a look at the benefits of a comprehensive motor insurance policy below:

• Full Insurance for Car: Comprehensive car insurance provides total protection to the insured car by covering both third party damages as well as own damages arising out of accidents, theft, fire, etc.
• Saves Money – It helps to save money as you get coverage for both own damages and third party damages under one car policy. Thus, you are not required to buy two separate policies.
• Stress-free Travel – With comprehensive insurance coverage, you can drive your car without any worries. It keeps you safe from all kinds of adversities allowing you to enjoy your travel to the fullest.
• No Claim Bonus - When you purchase a comprehensive car policy, you are also entitled to a No Claim Bonus (NCB) reward for every claim-free year. You can use the NCB to get a discount on car insurance policy renewal premium.

Who Should Buy Comprehensive Car Insurance?

If you are wondering whether comprehensive car insurance is suitable for you or not, check out the list of people who must buy this policy for their cars:

• New Car Owners – Buying a car involves a major financial investment, which makes it important to save your newly-bought possession from all kinds of dangers. Thus, new car owners should buy a comprehensive policy for their cars.
• Road Trippers – If you are a road tripper who likes to travel to different places and cities in your car, a comprehensive policy is what you need. It will protect you and your car from any emergencies and will also give you the option to buy roadside assistance cover as an add-on.
• Residents of Metropolitan Cities – If you live in a big city, you must have comprehensive insurance for your car as metro cities pose greater risks due to never-ending traffic, pollution and frequent accidents as compared to smaller cities.
• Residents of High-risk Areas – Some places are more prone to accidents or dangers as compared to others. For example, landslides are common in mountainous areas. Thus, people staying in such areas should have a comprehensive policy to keep their cars safe.
• Fancy Car Owners – Owning a fancy car, such as a BMW or Porsche, not only boosts your self-esteem but also makes you an easy target for theft. If your fancy car gets stolen or is damaged in an accident, you will suffer a bigger loss than people with regular cars. Thus, you must keep your prized possession protected under a comprehensive car insurance policy.
• Clumsy Drivers – If you are one of those clumsy drivers who attract trouble and are prone to accidents, comprehensive car insurance is your saving grace as it will take care of any damages or losses incurred.
• Paranoid Car Owners – If you happen to be someone who is overprotective about his/her car and gets paranoid even with a slight scratch, you should get comprehensive insurance for your car. It will provide you with much-needed peace of mind while taking your car around.

Reasons to Buy a Comprehensive Car Insurance Policy

Purchasing a comprehensive car insurance policy is not mandatory but recommended as it offers several benefits to the policyholder. These benefits are:

• Own Damage Cover: Apart from the mandatory third party liability cover, comprehensive car insurance also covers damages sustained by the insured car due to theft, accident, fire, natural and manmade disasters, etc. 
• Additional Covers: By purchasing a comprehensive car insurance policy, you get the option of buying various additional covers at some extra premium amount to enhance your policy coverage. Some of the add-ons are zero dep cover, tyre protect cover, engine protect cover, etc.
• No Claim Bonus: Insurers also offer a No Claim Bonus discount on the purchase of a comprehensive car insurance policy. The NCB reward is granted for not making a claim during a policy tenure. This reward gets accumulated each year and can be used to get a discount on the car policy renewal premium.
• Personal Accident Cover: A compulsory personal accident cover is also offered with a comprehensive car insurance policy. This cover provides compensation of up to Rs. 15 lakh against the death or disability of the owner/driver of the insured car resulting from a car accident.
• Cashless Claim Benefit: With comprehensive car insurance, you can also take advantage of cashless claims at the time of claim settlement. Under this facility, a policyholder can get the insured car repaired in an authorized network garage without paying anything from his/her pocket. This is because the repair bill is taken care of by the insurance company.

Comprehensive Car Insurance for an Old Car

Comprehensive car insurance covers all types of cars, whether old or new. While it is a must for new cars, you can also get your old car insured under the comprehensive insurance policy if you still use it. 

However, you must consider the age of your car as well as how long you plan to continue using it before deciding on buying comprehensive insurance coverage.

For example, let’s say you have an 11 years old car that you use regularly and plan to use until the next four years. In this case, buying comprehensive car insurance would be a good decision and not an expensive one. This is because older cars have lower market value and hence, one can get his/her car insured for a lower premium amount.

How to Buy Comprehensive Car Insurance Online?

If you wish to buy comprehensive insurance for your car online, follow the steps given below:

• Visit the website of Policybazaar Insurance Broker Private Limited
• Go to the ‘Car Insurance’ page under the ‘Insurance Products’ menu
• If you already have car insurance, enter your car number to renew your car policy. 
• If you have a new car, go with the option ‘I have a brand new car.
• Enter the details of your car, such as manufacturing year, make & model of the car, fuel variant, etc.
• Provide your contact details, including your name and email id
• Enter previous car policy expiry details and claim details if any
• Choose the suitable comprehensive insurance quote out of the mentioned plans
• Select the add-on covers that you want along with your comprehensive insurance policy
• Pay the final premium amount online via the preferred payment mode
• The comprehensive vehicle insurance policy will be issued and the policy details will be sent to your registered email id.