Insurance

Comprehensive Car Insurance Simplified

The Motor Vehicles Act 1988, has made it compulsory for all the car owners to take the insurance policy or the third party insurance at least. Failing of this could lead to legal issues and impose a penalty on the driver of the car. As the number of cars has increased on road, the chances of unforeseen mishaps have also increased relatively. Car insurance keeps an individual on the safer side by providing financial assistance against any physical damage or bodily injuries.

Comprehensive car insurance policy offers complete coverage against the damages caused to your car in an accident. The insurer in this motor insurance policy covers for the damages to your car, third-party legal liability, theft, along with the personal accidents. Comprehensive motor insurance also covers for thefts or damages caused due to natural calamities. The coverage can be extended by adding the add-on covers, such as engine protector, accessories cover, roadside assistance etc.

In third party car insurance, the third person is the beneficiary who gets the claim for the damage caused to them in any mishap. Unfortunately, this policy does not cover any damages caused to your own car during the accident.

Inclusions

Before selecting a car insurance plan, one should be aware of the inclusions and exclusions of the policy to take a well-informed decision. Read policy wordings of your policy provided by the general insurance provider. Following are the natural and manmade disasters that comprehensive car insurance policies usually cover:

  • Damage caused by natural calamities
  • Fire
  • Vandalism
  • Theft
  • Damage to third party
  • Damage to a vehicle caused by falling objects such as trees
  • Damage or destruction of a vehicle caused by an act of civil disturbance such as riots

Exclusions

If a vehicle cause damage due to a collision, then a car insurance claim cannot be made unless you have a comprehensive car insurance coverage. Similarly, many things are exclusions for comprehensive car insurance policy.

  • Depreciation value
  • Wear and tear of the vehicle
  • Electrical or Mechanical breakdown of the vehicle
  • Damage caused by a person driving without a license
  • Damage caused due to driving while inebriated
  • Damage caused due to driving under the influence of drugs
  • Damage to tyres and tubes

Conclusion

The general conception among people is that comprehensive car insurance policies are more expensive than Third Party Liability Insurance. However, it is not necessary that a comprehensive cover will always be expensive. Comprehensive car insurance policy might turn out to be a more cost-effective plan as compared to third-party insurance plan. Always compare comprehensive car insurance quotes online to check the plan, which will suit your needs and requirements.

When does the policy need to be renewed?

The insurance company with which you have your existing policy starts reminding you to renew your policy few months before it expires. The new insurance policy comes into effect only after the expiry date of the existing one. Timely car insurance renewal is important to avail the No Claim Bonus.

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