What is Comprehensive Car Insurance and What Does It Cover?

Driving is a sense of freedom but at the exact moment, it is a prominent duty as well because you will be in command of your car which may cause you injury or harm if you don’t drive carefully.

As a result, comprehensive car insurance plays an essential part in providing economic assistance in case of accidental damage to the car. But you will be wondering what is comprehensive car insurance. Isn’t it?

Well, this insurance is specifically designed in order to pay for repairs to your vehicles that have been caused by other things other than a collision. But let’s understand this concept in the broadest sense.

What is Comprehensive Car Insurance?

Comprehensive car insurance is an insurance policy that covers a policyholder against the damages maintained by both parties that have been involved in an uncertain event such as an accident or fire. Hence, these damages are covered by this comprehensive insurance.

Comprehensive car insurance will cover your vehicle if it has been destroyed by natural calamity, dented by a run-in with an animal, spray-painted by someone, falling trees, theft, damage in an accident, or any other causes.

Hence, comprehensive car insurance is an important assurance of security not only for the vehicle damage but also for the liability of the third party involved in the casualty.

Relevance of Comprehensive Car Insurance

Comprehensive insurance, liability insurance, and collision insurance are the three segments of the comprehensive policy. In the majority of the states, the law mandates every driver to hold liability insurance.

No matter if you are buying a demo car or a brand new one, buying this comprehensive insurance coverage will be a lot beneficial for your car if it has met with a collision and has been damaged.

However, collision and comprehensive insurance are optional if someone possesses a vehicle outright. If you have financed the vehicle, the auto loan company may require comprehensive insurance for your car.

What is NCB in Comprehensive Car Insurance?

There is a general belief in India that comprehensive plans are costly when compared with third-party plans, whereas this is not completely untrue. The higher premiums of a comprehensive insurance policy also offer incredibly more elevated coverage.

Own injuries, damages, and car theft can lead to serious financial losses. Paying higher premiums for a comprehensive policy makes meaning as it can save you from such losses. When buying top-selling cars in India, you must get this insurance policy without ignoring it.

Apart from this, there is another smart way in order to reduce the premiums of your insurance policy. With the help of the No Claim Bonus or NCB, you are able to get discounts of approximately 50% on the policy premiums.

You can think about NCB as an incentive that you receive from your insurer for not filling any claims. The NCB begins with 20% for the foremost claim-free year and advances up to 50% in the fifth claim-free year.

Hence, if you want to renew your comprehensive insurance policy that you purchased last year because it is expiring soon and you didn’t file any claims last year, then you will have one claim-free year.

As a result, you are allowed to receive NCB or a premium discount of 20% and this NCB percentage will continue to increase to the fifth claim-free year as mentioned in the table drawn above.

However, you will lose your accumulated NCB when you file any claims and still, if you have three claim-free years and presently, the NCB is 35%, then you will have to start at 0% NCB when you file any declarations currently.

Additionally, the maximum NCB discount on comprehensive car insurance is 50%. With this, you would have understood, what is comprehensive car insurance. If you still have some doubts, then keep reading this blog in order to understand it in a better way.

What is Comprehensive Car Insurance Covering?

In India, carrying third-party insurance is mandatory but having comprehensive insurance is not. It entirely depends on the vehicle owner in order to opt for a plan according to the requirements.

You must select the most suitable comprehensive insurance coverage in order to protect yourself financially. When you drive your car on the public road, there are numerous possibilities of damage to your vehicle because of casualties or any other grounds.

Occasionally, the capability of damage can be huge and the restoration expenses for the impairments can be costly and will make a hole in your pocket. As a result, moving forward with comprehensive cover insurance should never be skipped.

Let’s understand what is comprehensive car insurance is covering in a bit more detail:

→ Third-party cover: It is crucial to understand that comprehensive vehicle insurance covers third-party liability too. Having a third-party cover provides the users with protection against the damages sustained to the third party or their property.

→ Damage due to natural disasters: If any damage or loss is sustained because of a natural disaster a cover is provided. These calamities generally include floods, storms, and others which may differ from one insurance provider to the other.

→ Personal accident cover: A permanent disability or demise of the person, the vehicle driver or the owner provides the third party with the compensation.

→ Add-on covers: One may also enhance the security of the current motor insurance policy by easily including the add-ons to the base policy. You can include add-on benefits such as zero depreciation cover, consumables cover, and others. No matter what vehicle you own, it is better to select comprehensive cover insurance. When you get covered adequately, it helps you to remain at peace and not stress about financial responsibilities.

What is Comprehensive Car Insurance Not Covering?

After learning about the covering aspect, let’s learn about what this comprehensive policy is not covering more extensively:

→ Wear and Tear: If damage is sustained to the vehicle because of regular wear and tear or because of aging that causes significant damage that remains uncovered.

→ Alcohol Impact: If a casualty has been sustained and it has been discovered that the driver was under the influence of alcohol or any other substance, then no claim will be provided. You must know that driving your vehicle is a social responsibility and driving safely is crucial.

→ Illegal Driving: If you are driving a car without a proper driving license in India, and if the police find you, then the comprehensive cover insurance will be nullified.

→ War-like Situations: If any damage or loss is sustained to the vehicle because of a war-like situation such as mutiny, nuclear attack, bomb attack, and others that are uncontrollable.

Difference Between Comprehensive Insurance and Collision Insurance

You must know what is comprehensive car insurance policy and if you are buying a brand new car no matter if you are paying cash or financing it, you need to have comprehensive car insurance.

Comprehensive insurance coverage can keep you safe against little and significant damages that are caused due to uncontrollable things. The location where you live also plays a vital role in your decision of when you require comprehensive coverage.

If you live in a rural area where the collisions of your car with the animals are common and frequent or you live in a story region where it often gets hail, then you must buy comprehensive car insurance.

This is typically true if a person is living in a criminal area where break-ins and regular thefts are occurring. Collision insurance saves you in a single-car rollover, a collision with an object, or a collision with another vehicle.

This insurance doesn’t cover break-ins, thefts, or weather-related damage. When you rent a car or buy a second-hand car, you need to buy collision insurance as it will safeguard your car from spending bulky charges for the recovery of your car.

Well, collision insurance comes with convenience when you get into an accident so that you can spend for your car to get repaired after a collision. Further, this insurance covers all the damage to your car because of potholes in the route.

You must understand that neither comprehensive insurance coverage will help you in covering medical bills from an accident or damage to a third person’s vehicle if you are in an accident. But what is comprehensive car insurance price? Let’s understand that in a comprehensive way.

How Much Does Comprehensive Car Insurance Cost?

Comprehensive policy covers the damage that has been caused to your car because of accidents, disasters, and other reasons. Hence, the average price of this insurance may range from approximately ₹11,145.54 per year to nearly ₹22,291.08 depending on several factors such as the region where you live in.

Both comprehensive and collision insurance have their deductibles, hence a driver can select different deductibles as per the sensed levels of danger in each of these zones.

If you do not file a comprehensive claim but need to forego comprehensive coverage altogether, they can select ₹83,195.85 deductible in order to lower the premiums. The comprehensive insurance policy will be as expensive as higher the vehicle’s cash value.

If you understand how insurance companies demonstrate the risk classes of the drivers, it will help you to evaluate what you are required to pay for comprehensive coverage.

Your driving record, where you live, and your coverage amount will demonstrate how much you need to pay for car insurance, which will include your comprehensive coverage as well.

Final Talk

If you are stressed about does comprehensive car insurance covers any damage to your car that has been caused due to a pothole, then let us tell you that this insurance doesn’t cover this damage.

However, collision insurance does cover this impairment because it covers all the damage that has ensued after a collision with an entity.

With this blog, you have comprehended what is comprehensive car insurance and how influential it is for the supervision of your vehicle. To repair your vehicle after a crash, this insurance will be extremely valuable to you.

Frequently Asked Questions

Q1. What is covered in comprehensive car insurance?

Ans. Comprehensive insurance covers damage to your car from falling trees, animals, natural calamities, vandalism, and theft. It does not cover damage to other people or vehicles. When you raise your deductibles for comprehensive car insurance will surely help you to lower your premiums.

Q2. Is comprehensive insurance free?

Ans. No, a comprehensive insurance policy is not free. You need to pay the fees in order to purchase this premium policy.

Q3. Which is better third party or comprehensive?

Ans. The crucial difference between third-party and comprehensive insurance is the coverage offered. Third-party insurance covers just the damages that have been caused to the third party and their vehicle whereas a comprehensive car insurance policy covers both third-party liabilities and own damage.

Q4. Can I buy only comprehensive car insurance?

Ans. Comprehensive car insurance offers ample coverage that surrounds third-party penalties and own harm. Well, purchasing this kind of insurance policy is not compulsory by the rule but it has become a favoured option for the majority of car owners because of its improved coverage and facilities.