Categories: FINANCE

Comprehensive Insurance: Everything You Need To Know

Car insurance is a critical aspect when you buy a car. While third-party insurance is a mandatory requirement under the Motor Vehicles Act, you must consider purchasing comprehensive car insurance for overall coverage. 

With comprehensive insurance, you can have financial assistance to tackle unforeseen conditions that might impact a third party and your car as well.

What is Comprehensive Insurance?

Comprehensive insurance, or first-party car insurance, is the most inclusive car insurance coverage. It is the car insurance policy that offers protection to the policyholder against third-party damage to the vehicle, property, or people, as well as personal damage caused by accidents, natural calamities, and malicious activities like theft and vandalism.

Inclusions of a Comprehensive Car Insurance

Comprehensive car insurance includes third-party and first-party insurance benefits. The following are the inclusions of a comprehensive car policy.

  • Natural disasters like earthquakes, floods, cyclones and lightning
  • Theft or malicious activities like vandalism and riots.
  • Explosions and self-ignition.
  • Damage to the car or belongings that are damaged during an accident, including the windshield and sunroof.
  • Death or bodily injury to a third party
  • Personal cover for your medical expenses.

What is Not Included in a Comprehensive Insurance?

Although first-party insurance offers full coverage to your car, here are some exclusions that are not covered under a comprehensive car insurance.

  • Damage to the car due to general wear and tear.
  • Damage to the car if the person is driving without a licence.
  • Loss caused while driving under the influence of alcohol or an intoxicating substance.
  • Consequential losses are a subsequent result of the original damage or loss.

Features of a Good Comprehensive Insurance Policy

To ensure all the first-party insurance benefits, you must look for these features in a comprehensive insurance policy.

Comprehensive Coverage

Although comprehensive car insurance offers complete coverage for your car and finances, you must examine the various aspects of the offered coverage. It must provide overall coverage for third-party liability, damage to your car under various circumstances, and personal accident cover for the policyholder in the event of an accident.

Cashless Repair

When you buy car insurance online, check for the options available for claiming cashless repair for your car. A wide network of garages offering cashless repairs ensures convenience for you.

Easy Accessibility

The most reputable insurers offer easily available services. They boast user-friendly websites to help you buy or renew insurance online. 

Moreover, they also provide 24/7 dedicated support to help you in emergency situations.

Comprehensive Insurance Add-Ons

You can choose a variety of add-ons with your comprehensive car insurance. Look for the following add-on options when you buy insurance online.

Pay-As-You-Drive: It allows you to pay premiums based on the number of kilometres you opt to drive.

Nil Depreciation: The Full repair amount will be recovered when you claim without deducting the depreciation on fibre and glass parts.

Engine Protection Cover: This add-on allows you to cover the cost of repairing the gearbox and differential parts if the engine is damaged due to water ingress or lubricant leakage.

Key Replacement Cover: You can reimburse the cost of replacing lost or stolen keys with this add-on.

The top insurance companies offer several additional add-ons, including 24/7 road assistance, return-to-invoice coverage, EMI protection, daily allowance benefit, RIM protection, coverage for consumable expenses, coverage for electrical and non-electrical accessories, emergency hotel accommodation, and EV-specific Add-ons.

Conclusion

It is crucial to choose the right type of insurance for your car. While purchasing comprehensive insurance can ensure complete protection, you must look for your requirements when choosing the insurance type. Moreover, choose the add-ons wisely when you buy car insurance online.

Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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