A car is one of the most prized possessions for any individual who owns one. Unfortunately, car thefts are common in India and thousands of cars are reported missing each year. What’s more disturbing is the fact that most of the stolen cars are not recovered or traced back as they are often dismantled and the parts are sent to neighbouring countries. Naturally, every car in India owner worries about the safety of their beloved car.
A car insurance policy offers coverage against theft, provided you have comprehensive car insurance. In other words, if your car is stolen and cannot be traced, you will receive the Insured Declared Value of the car when you file a claim. This compensation will help you replace your stolen car with a new one without suffering many losses.
What Is Comprehensive Coverage?
Unlike third party car insurance, which only covers the damage caused to third parties, a comprehensive car insurance policy offers coverage against a wide range of risks such as natural calamities, vandalism, theft, accidental death, injury etc. Generally, comprehensive coverage is required if you’re leasing or financing your vehicle. However, if you own your car outright, comprehensive coverage is optional.
How does comprehensive coverage help compensate for a stolen car?
Every comprehensive car insurance policy has a deductible and a coverage limit. The deductible is the amount you will need to pay from your pocket during claim settlement. When you purchase a comprehensive car insurance plan, you can choose the amount of deductible you are willing to pay. The higher the deductible, the lower will be your car insurance premium. On the other hand, the coverage limit for a comprehensive car insurance is typically your vehicle’s IDV (Insured Declared Value). IDV is the current market value of the vehicle, which is calculated after deducting the applicable depreciation. Additionally, a comprehensive car insurance also helps cover the cost of replacing stolen car parts up to your coverage limit minus your deductible. If you have customized parts or equipment installed in your car, such as a high-tech sound system, they will not be covered. However, if you wish, you may be able to purchase additional coverage for custom parts by negotiating with your insurance provider.
As you can see, taking up a comprehensive car insurance will ensure that you are financially protected against major risks such as thefts and accidents. So, save yourself from the apprehensions of your car being stolen, buy a comprehensive car insurance online with Finserv MARKETS today!
To know more on car insurance in depth, you can check out these blogs:
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