As the name signifies, a comprehensive auto insurance coverage is a kind of policy that protects the policyholder against losses sustained by both parties in an unforeseen incident, such as an accident or fire. Therefore, the comprehensive policy will pay for your losses as well as those of your vehicle and the other party in the accident, up to the maximum coverage amount.
Own damage and third-party car insurance are combined into one policy under comprehensive car insurance. According to the Motor Vehicles Act, third-party liability insurance is required for all motor vehicles operating on Indian roadways. However, any damages your car could sustain in an accident are not covered by this type of coverage. Therefore, in order to have whole financial security in the event of an unanticipated incident, you must choose comprehensive car insurance coverage. In addition to protecting you from traffic collision losses, comprehensive auto insurance also covers damage to your vehicle from non-crash-related sources. Purchasing a car is a significant financial commitment, so it makes sense to protect it with insurance.
What Comprehensive Car Insurance Covers ?
Comprehensive auto insurance is a policy that safeguards you and your vehicle against unforeseen incidents like accidents or fires. It covers losses for both parties involved in such events.
- Fire Damages
- Accidental Damages
- Vehicle Theft
- Natural catastrophes such as earthquakes, floods, and cyclones
- In-transit car damage
- Falling things
- Risks caused by humans, such as riots, strikes, vandalism, etc.
- Damages to third parties’ property, injuries, or deaths
- Death or Personal Accidental Injuries
Why Choose Comprehensive over Third-Party?
Even if you must obtain third-party liability auto insurance, it is preferable to spend far more on comprehensive insurance because it will also give you the following benefits:
1. Cover against natural disasters :-
Weather patterns have become extremely unpredictable. In practically every Indian city, flash flooding can result from an unexpected downpour. Your car could sustain damage as a result of such a deluge. Here’s where comprehensive Car Insurance can save you money on repairs.
2. Cover against man-made acts :-
But your car is not only at risk from natural disasters. Additionally, it can be the target of theft or other nefarious activity. The financial effects of such an act would also be shielded from you by a comprehensive Car Insurance coverage.
3. An insurance policy covering third parties :-
Third party liability insurance is automatically included with comprehensive Car insurance.
4. Access to add-on covers :-
Everybody’s needs for auto insurance are different. By adding add-on coverages that offer protection under particular circumstances that are more likely to affect you, you may personalize your auto insurance policy. Zero depreciation cover, engine and gearbox cover, and return to invoice cover are a few of the more well-liked add-on covers.
Additional Benefits of Comprehensive Insurance
Here are some additional advantages of purchasing a comprehensive car insurance coverage in case you’re not convinced:
- There is always a chance that your vehicle will be stolen or hijacked. Purchasing a car is a significant financial commitment; could you afford to replace it in the event of theft? Can you afford to repurchase the same model and make? Even if your car is stolen, you can still be responsible for repaying any auto loans you may have taken out. If your automobile is stolen, comprehensive car insurance will protect you from these situations by paying the specified insured amount.
- Normally, your vehicle would be parked on the street. Perhaps someone you don’t know will decide to scratch it out of spite, or maybe there will be a protest on the road and the demonstrators will destroy your car. In these situations, repairs will also be covered by comprehensive auto insurance.
- If a third party causes an accident and is at fault, their auto insurance will cover any damage your vehicle sustains. But what would happen if you came across an animal on the road? There would still be dents and damage to your car. These damages would be covered under a complete policy as well.
- Car fires are devastating and can even lead to your car being unrecoverable. With a comprehensive car insurance policy, you can at least be assured that the financial hit from such an incident would be contained.
Why choose ICICI Lombard for comprehensive car insurance?
By purchasing insurance from ICICI Lombard General Insurance, you become a part of a family of more than 4 crore content clients. For support with your auto insurance policy, you can get in touch with our team from anywhere in the nation at any time of day. Simply give us a call, and we’ll guide you through the streamlined claims procedure to guarantee a quicker payout.
Access to our extensive network of cashless garages is also provided. At these garages, you may get your automobile fixed for covered damages without having to pay a single rupee out of your pocket. The claims are resolved without any complications at all, and the cash is made straight to the garage. In addition to purchasing and renewing insurance online thanks to our robust web presence, you can also file claims entirely online, which streamlines the procedure considerably.
Additionally, ICICI Lombard provides a wide range of add-on covers so you can tailor your coverage to meet your unique needs.
The distinction between comprehensive and third-party auto insurance
In India, there are essentially two types of Car Insurance.
- Auto Insurance for Third Parties
- Comprehensive Car Insurance
You are only covered by third-party insurance against injuries, losses, or damages to other people in the event that your vehicle is involved in an accident. Every vehicle must have third-party insurance, according to the Motor Vehicles Act.
However, what if the collision injured you in addition to causing damage to your vehicle? Regretfully, you will have to pay out of pocket for your injuries and vehicle damages if you have third-party insurance. A comprehensive car insurance policy can be useful in this situation.
It’s time to learn what comprehensive car insurance is and how it differs from third-party car insurance if you’re worried about your financial stability in the event that your car is stolen or has an accident.
Add-ons for Comprehensive Car insurance
You can buy many add-ons with your comprehensive insurance policy, which is another benefit. You can extend the reach of your insurance with the aid of the add-ons. For example, 24×7 roadside assistance is an add-on that many people think about acquiring in addition to their comprehensive coverage.
With this add-on, you can receive 24×7 assistance in case your car breaks down even in the middle of nowhere. If you have this add-on, your insurance will attempt to assist you in numerous ways, that includes arranging a mechanic, towing, a different car, and fuel delivery.
Some very popular Add-ons you can consider are-
1) Zero Depreciation also known as Depreciation Waiver Cover.
2) Roadside Assistance
3) Protection Cover for the Engine and Gearbox
4) Loss of Key Cover
5) Consumable Cover
6) Replacement Tire Cover
Understanding No Claim Bonus (NCB)
In India, there’s a general perception that comprehensive insurance cost more than third-party policies. Although this isn’t totally untrue, a comprehensive policy also offers noticeably more coverage for its higher costs. Personal injury, property damage, or car theft may cause significant financial losses.
It makes reasonable to pay greater premiums for a comprehensive plan since it could protect you from these types of losses. Additionally, there is a clever method for lowering your comprehensive policy’s prices. You can receive policy premium discounts of up to 50% when you have No Claim Bonus, or NCB.
Consider NCB as a reward your insurance company gives you for not making any claims. In the first claim-free year, the NCB is 20%, and in the fifth claim-free year, it can reach 50%.
Exclusions in Comprehensive Insurance:-
Comprehensive insurance plans have exclusions, just like any other kind of general insurance policy. Among the most significant ones are:
- Parts depreciation
- Age-related wear and tear
- Electrical and mechanical breakdowns
- Driving a car without a valid license
- Driving under the influence of alcohol or other intoxicants
- War-related or nuclear risk damage
- Damage occurred outside the policy’s geographic scope.
Under Comprehensive Car Insurance, what is covered and what is not?
Inclusion : –
- Damage Owing to Natural Disaster
A comprehensive Vehicle insurance policy protects the vehicle from calamities that happen naturally, such fire, earthquakes, typhoons, floods, cyclones, etc.
- Damage from Man-Made Disaster
Additionally, the plan provides coverage for the insured vehicle against man-made disasters like strikes, riots, and other nefarious acts. It also covers any mishap brought on by outside forces including acts of terrorism.
- Personal Accident Cover
The owner-driver of the covered car is given personal accident coverage up to Rs. 15 lakh. Furthermore, passengers and a paid driver can also obtain personal accident coverage.
- Third Party Legal Liabilities
Liabilities in the event that a third party is harmed are covered by comprehensive auto insurance. It can involve the death of the third person or loss to their property.
Exclusions: –
- Inactive Car Insurance Policy
Any loss or damage to the vehicle that occurs while the policy is lapsed or inactive. Be certain that the comprehensive auto insurance policy is timely renewed.
- Driving Without a Valid Driving License
If the driver is discovered operating the insured car without a valid driver’s license, no claims will be considered.
- Driving While Intoxicated
In the event that a claim is filed and it is discovered that the owner-driver was intoxicated or suffering from another form of intoxication or substance misuse.
- Incompetence
To put it plainly, avoid doing things that you shouldn’t do. For example, don’t take the chance of driving outside if there are floods in the city where you live. If such carelessness is not practiced, the plan will not pay for it. It could differ depending on the insurer.
- Nuclear Risk, War, or Mutiny
Any harm done to the vehicle in the event of a mutiny, nuclear war, or other emergency is likewise unreported.
- Wear and Tear
The warranty does not cover any damage resulting from typical wear and tear or the aging process of the vehicle. or any harm that exceeds the guidelines set forth by the vehicle manufacturer.
Who Should Get Comprehensive Auto Insurance?
You have a good understanding of the comprehensive insurance plan by now. Ever pondered who ought to purchase a comprehensive auto insurance policy?Anybody who fits into one of the following categories ought to act sensibly:
- If You’re Just Started Out
Purchasing an automobile is a difficult endeavor. It does need a lot of budget and preparation. Make sure you have comprehensive insurance in place at the time you purchase a vehicle.
- Residing in Cities Class I and Class II
While driving in a city may seem simple, it’s not. To drive sensibly and securely, choose a proper comprehensive four-wheeler insurance policy to safeguard both the vehicle and you.
- A Fresh Driver
If you are a new driver, be sure you have a full coverage insurance policy. Being safe is always preferable to being sorry, and having the appropriate insurance coverage will support you no matter what.
- Regular Motorist/voyager
If you drive frequently, you should select the appropriate car insurance policy and include yourself in the circle of protection.
FAQ’s
Q1. What is comprehensive car insurance?
A1. Comprehensive car insurance is a type of policy that provides coverage for losses sustained by both parties in unforeseen incidents such as accidents or fires.
Q2. How is comprehensive insurance different from third-party insurance?
A2. Comprehensive insurance covers damages to your vehicle as well as third-party damages, while third-party insurance only covers damages to others involved in an accident.
Q3. What does comprehensive car insurance cover?
A3. Comprehensive car insurance covers damages from various instances including fires, accidents, theft, natural disasters, vandalism, and third-party property damage or injuries.
Q4. Why should I get comprehensive car insurance?
A4. Comprehensive car insurance offers cover against natural disasters, man-made acts, provides third-party liability coverage, and offers access to add-on covers for personalized protection.
Q5. What are the advantages of purchasing comprehensive car insurance?
A5. Some advantages include protection against theft, vandalism, animal collisions, and car fires, as well as access to a wider range of add-on covers for enhanced protection.
Q6. What is No Claim Bonus (NCB) in comprehensive insurance?
NCB is a discount offered by insurance companies to policyholders who do not file any claims during the policy term, rewarding safe driving behavior.
Q7. What are the exclusions in comprehensive car insurance?
A7. Exclusions may include parts depreciation, wear and tear, driving without a valid license, driving under the influence, and damages related to war or nuclear risks.
Q8. What does comprehensive car insurance cover and exclude specifically?
A8. Comprehensive car insurance covers damages due to natural disasters, man-made disasters, personal accidents, and third-party liabilities, while excluding damages during policy lapses, driving without a valid license, driving under the influence, and wear and tear.
Q9. Who needs to purchase comprehensive auto insurance?
A9. Anyone purchasing a car, residing in cities with high traffic density, new drivers, and regular motorists should consider purchasing comprehensive auto insurance.
