Standalone Own Damage Car Insurance - Meaning

Standalone own-damage car insurance is a form of motor insurance that provides coverage only to your car against various kinds of damages such as accidents, fire, natural or man-made calamities, riots, etc. Many people may tend to confuse standalone own-damage insurance with comprehensive insurance. However, comprehensive insurance provides both third party cover as well as cover for your own car. On the other hand, standalone own damage insurance only provides cover for damages to your own car. Buying standalone own-damage car insurance is a good choice when you already have third-party insurance cover and are looking to protect your own car against damages. 

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Standalone Own Damage Car Insurance Online - Cost & Specifications

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What is Own Damage Car Insurance?

The standalone own damage policy meaning is quite simple to decipher. In the truest form, this insurance policy only covers your car against damages such as accidents, collisions, thefts, natural calamities such as earthquakes, fire, etc. In a nutshell, anything or everything that falls in the purview of ‘own’ car damages, is covered under standalone own-damage car insurance.

How Does Standalone Own Damage Insurance Work?

As mentioned above, standalone own-damage car insurance is bought to secure your own car financially against various damages. However, this car insurance is only ideal for those people who already have a third-party cover and are looking to secure their own car without any additional features, as it’s a highly cost-efficient method. Once a vehicle owner purchases a standalone own damage policy, their insurance coverage begins. If there are any damages to the car, the policyholder can make an insurance claim (reimbursement or cashless) with their insurance provider. When the insurer verifies the insurance claim, it is either paid out to the policyholder as the reimbursement of the repair expenses, or the bills are directly settled with the network garage where the vehicle is repaired.

List of Standalone Own Damage Car Insurance Providers

Car Insurance Partners

Claim Settlement Ratio

Premiums Starting at*

Buy Plans

Bajaj Allianz General Insurance

98%

Rs. 2094

View Plans

Acko General Insurance

98%

Rs. 2094

View Plans

HDFC Ergo General Insurance

-

Rs. 2094

View Plans

 

Disclaimer: *The premium rates are indicative. The actual premium that you may have to pay may change depending on various factors. Please check the prevailing premium rates before purchasing your car policy.

Benefits of Standalone Own Damage Insurance

Now that you are aware of a private car standalone own damage policy, it is important to understand a fair bit about the benefits on offer:

  • Economical

You can save a lot of premium money by opting for third-party and OD insurance, separately.

  • Zero Obligation

With OD insurance, you aren’t obligated to stick with long-term comprehensive plans, only to make them last for a mandatory, 3-year period. Instead, you can simply purchase relevant third-party insurance for three years, at an affordable rate, and get a standard yearlong OD plan, capable of being renewed each year.

  • Choices

At present, there are several insurance service providers dealing in standalone own damage insurance policies. Therefore, restricted choices should not be a reason anymore for sticking to a comprehensive car insurance policy.

Who Should Buy Standalone Own Damage Insurance?

A standalone own-damage car insurance is a good choice for the following types of people:

 

  • Anyone looking to financially secure their car at an economical rate.

  • People who have only third-party insurance but want to secure their own car.

  • People living in areas where accidents, theft, or natural calamities are frequent.

Inclusions and Exclusions in Own Damage Car Insurance Policy

Every insurance plan has its own set of inclusions and exclusions. Let’s take a look at the general exclusions and inclusions under standalone own-damage car insurance:

Inclusions

  • Accidental damage to your car

  • Collision

  • Theft and burglary

  • Fire and lightning

  • Self-explosion

  • Natural disasters such as earthquakes, landslides, floods, etc.

Exclusions

  • Wear and tear of car parts

  • Vehicle depreciation

  • Car breakdown caused by mechanical and electrical damages

  • Personal accidents caused due to illegal driving or driving in an inebriated state or without having valid credentials

  • Accidents outside of the geographical location covered under the insurance

Differences Between Third-Party, Own Damage and Comprehensive Car Insurance

A discussion like this will be incomplete if you do not understand the elementary differences between comprehensive, own damage stand-alone and third-party car insurance:

Comprehensive Insurance

Standalone OD Insurance

Third-Party Insurance

Provides coverage for third-party as well as own damage cover.

Only provides own-damage cover.

Only provides third-party insurance cover.

Comprehensive insurance is not mandatory.

Standalone OD insurance is not mandatory.

Third-party insurance is mandatory as per law.

Cost of premiums is higher than both standalone OD insurance and third-party cover.

Generally less expensive than comprehensive insurance but more expensive than third-party insurance.

The cheapest type of car insurance.

Can be heavily customised through add-on covers.

Customisation options for standalone OD insurance are available through add-ons.

Generally, no customisation options are available for this type of insurance.

Own Damage Car Insurance Premiums

In insurance terms, premiums are recurring (or one-time) payments that you have to make in order to keep your insurance plan active. Under standalone own-damage car insurance, premiums are determined on the basis of factors like age of the car, geographical location, amount of coverage, add-ons, etc.

How is Own Damage Insurance Premium Calculated?

Fortunately, insurance companies use a specific formula to calculate the standalone own damage premiums for cars, as given below:

 

Own Damage Premiums = IDV x premium rate + add-on covers - any insurance discounts

How to Reduce Own Damage Insurance Premiums

Here are some ways through which you can reduce your own-damage car insurance premiums:

 

  • Do not buy any add-ons that may not be necessary in your case.

  • If you have been using your insurance for a full policy term without making a claim, use the No Claim Bonus to get cheaper premiums during renewal.

  • You can opt for voluntary deductibles to lower your premiums.

  • Buying insurance online can help you save costs like commission and other fees.

How to Renew Standalone Own Damage Insurance

You can renew your standalone own damage insurance by following the given steps:

 

Step 1: Visit the ‘standalone damage car insurance’ page of your chosen insurance provider’s website.

 

Step 2: Enter your existing policy details/personal information on the form that appears on the page.

 

Step 3: Select the right standalone own-damage car insurance plan for your vehicle.

 

Step 4: Upload the documents required for the plan.

 

Step 5: Pay the online insurance premiums for the selected plan.

 

Your plan will be activated shortly!

 

Read More: Car Insurance Renewal

How to File for a Standalone Own Damage Insurance Claim

In the event of an accident or damage to your car, here are the steps you can follow to register an insurance claim:

 

Step 1: Inform your insurer about the damage to your car as soon as possible and about your intent to file a claim.

 

Step 2: Get an FIR of the incident (in case of an accident or theft).

 

Step 3: Get your vehicle repaired at a garage and keep all the bills and receipts intact. Alternatively, you can take your car to a network garage and get it repaired at no personal cost.

 

Step 4: Submit your bills and receipts to your insurer. After verification, the insurer will pay you the reimbursement amount. In the case of cashless claims, the insurer will pay off the network garage directly.

Which Add-On Covers Can be Bought with Own Damage Car Insurance?

The following are some of the best add-ons you can buy for your car:

  • Zero Depreciation Cover

With the zero depreciation cover, the depreciation of the car is not taken into consideration when you make an insurance claim, so you get the full market value of your damaged car parts.

  • No Claim Bonus Protection

With this valuable add-on, you can make up to two insurance claims for your car, but you will not lose your No Claim Bonus.

  • Engine Protect Cover

The engine protection add-on will provide an enhanced level of coverage to the engine of your car, which is generally not available under car insurance.

  • Personal Accident Cover

The personal accident add-on will cover any medical expenses arising out of a motor accident for you (the policyholder).

 

Read More: Add-on Covers in Car Insurance

To Conclude

This was all about the standalone own-damage car insurance policy. Finding the right kind of insurance, when you have many different types of insurance plans with various coverages available, can get tricky. To get more detailed information and decide on the best car insurance plan for yourself, check out the details on the Bajaj MARKETS website. You can also use the ‘Car Insurance Premium Calculator’ to get an estimate of your premium costs. 

Check Out Car Insurance Plans Available at Bajaj MARKETS

 

FAQs

  • ✔️ Can I buy only standalone own damage insurance?

    No, you will also need mandatory third-party insurance in addition to a standalone own damage cover. 

  • ✔️Is it compulsory to buy standalone own damage insurance?

    It’s not compulsory to buy standalone own damage insurance, but it’s incredibly useful in keeping your car financially protected against damages.

  • ✔️What does a standalone own damage policy cover?

    Standalone own-damage car insurance covers damages such as:

    • Accidental damage

    • Fire

    • Natural/man-made calamities

    • Riots, etc.