Importance of Comprehensive Car Insurance

A comprehensive car insurance is important to protect the car owner’s financial interest as it provides monetary compensation for the loss or damage.

Summary: A comprehensive car insurance plan protects the policyholder against losses incurred by both parties (insured and thirdparties) in any unforeseen incident, such as an accident or damage due to man-made or natural calamities. The inclusion of personal accident cover to this is mandatory by law. With comprehensive car insurance, you have a selection of rider options that you can choose according to your needs and preferences.It will provide extra protection. With the comprehensive insurance plan in place, youwill have peace of mind.

Tips for buying Car Insurance

Introduction

owning a car offers various advantages and unrivaled convenience for commuting. However, ownership also comes with responsibilities. One of the most important is to ensure that your car is insured.

Car insurance is not only a requirement by law but is also the most basic financial protection you can get against future bills resulting from theft or accidents. Among the types of motor insurance, comprehensive vehicle insurance stands out for its wide coverage and a heap of advantages.

Let’s discuss in detail comprehensive auto insurance, delving into its definition, scope of coverage, and reasons why it is a must-purchase for every car owner.

What is Comprehensive Car Insurance?

Comprehensive car insurance is all-inclusive motor insurance that covers the policyholder against damages to own vehicle and third-party liabilities. It will pay for the medical bills of the third party and you, the repair cost of your vehicle, and the settlement cost for damages caused to third-party property, up to the maximum coverage amount.

Moreover, if you opt for comprehensive coverage, you can customise the plan with vehicle insurance add-ons. You can choose from a host of beneficial riders such as roadside assistance, zero depreciation, and engine protection, among others.

What Does Comprehensive Vehicle Insurance Cover?

Comprehensive car insurance typically covers:

1. Car theft
2. Damage to the car due to the following:

• Natural disasters like earthquakes, rockslides or landslides, floods, cyclones, hurricanes, etc.
• Man-made disasters like fire, explosion, vandalism, riots, strikes, terrorism.
• Objects like branches, rocks, or hail falling over

What are Not Covered Under Comprehensive Car Insurance?

Car insurance does not cover the damages due to accidents in the following circumstances:

• Accidents taking place beyond geographical limits
• Electrical or mechanical breakdowns
• Driving without a valid driving license
• Driving under the influence
• While the vehicle is used for unlawful activities

Benefits of Buying a Comprehensive Insurance

Purchasing comprehensive car insurance has several benefits, which include the following.

1. Financial Security

If an accident causes damage to your car, your finances could suffer significantly because of the repair costs. However, you may prevent this kind of situation by having comprehensive coverage. The insurer will reimburse you for the repair bill.

2. Cover for Death or Permanent Disability

Typically, comprehensive car insurance includes personal accident coverage. If an accident involving a car causes any injuries or permanent disability to the owner-driver, then the person will receive a compensation amount. In case of an unfortunate event of death due to an accident, the nominee of the policyholder will get the entire insured sum.

3. Add-on Coverage

When buying a comprehensive policy, you can enhance the coverage it offers with add-ons. These can enhance your safety and protection of your vehicle on the road. Some of the common add-ons are consumables, zero depreciation, roadside assistance, engine protection, etc.

4. Network Garages

Most car insurance providers have a tie-up with several garages, and you can avail of cashless repair services at any of their network workshops. You can receive repair services without compromising on quality and the hassle of settlement of claims and repair fees. That is a big advantage because it simplifies the whole process of getting your car back on the road.

5. Claim Settlement

A very important part of any insurance policy is the claim settlement procedure. Comprehensive car insurance is designed with the objective of quick and hassle-free settlement of claims. This ensures you get the money you need without unnecessary delays, thereby helping you to quickly get back on your feet after an incident.

6. No Claim Bonus (NCB)

No Claim Bonus (NCB) is a reward provided by the insurer if you do not file any claims during a policy period. It is a discount on the premium for the following year. NCB increases every year. Thus, the increment with each successive claim-free year makes it an ideal option to save on your future premiums. In addition, the NCB is linked to the policyholder and not the vehicle, which means this can be transferred if you decide to purchase another vehicle.

7. Deductibles

Selecting a deductible can help the cost of your car insurance price go down considerably. It is the portion of the total cost that you pay out-of-pocket when making a motor insurance claim.

Choosing a deductible can indeed have advantages, but make sure the amount you select is within your means. A deductible that is too large might negate the purpose of purchasing insurance for your vehicle.

8. Peace of Mind

With comprehensive coverage, you can be confident that a sizable portion of any unforeseen vehicle-related expenses will be reimbursed. You will not have to shell the entire amount out of your pocket, thus giving some peace of mind.

Conclusion

A comprehensive car insurance is important to protect the car owner’s financial interest in the case of vehicle theft or damage due to accident and natural or man-made. It provides monetary compensation for the loss or damage.

By understanding the different types of riders available and their benefits, one can make a prudent choice and add these to the comprehensive insurance to enhance the coverage. This allows you to drive with the assurance that you and your car are insured in any eventuality.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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