What is Comprehensive Car Insurance?

A comprehensive car insurance plan is an extensive coverage that protects you against third-party liabilities and own damage expenses. The policy safeguards your vehicle in the event of accidents, theft, and loss due to natural and man-made disasters. Although comprehensive car insurance is not mandatory, it is recommended to buy one as it provides all-around protection to you and your vehicle during unfortunate events.

Here, we have discussed in detail everything you need to know about comprehensive car insurance coverage. Let us begin by understanding how comprehensive insurance works.

How Does Comprehensive Car Insurance Work?

Much like third-party car insurance, comprehensive car insurance covers third-party liabilities. That means the car insurance policy will cover any damage caused by your vehicle to a third party or their own property. In addition to this, the policy extends coverage to your own vehicle as well. That way, any damages incurred by the vehicle in an unfortunate event will be taken care of by the insurer.

Comprehensive car insurance coverage also allows policyholders to enhance the scope of the plan with add-on benefits. These benefits are available at a nominal price over and above your existing premium amount. You can use the car insurance calculator to determine the cost of the chosen coverage along with the add-on benefits.

We have discussed comprehensive car insurance add-on covers in detail further. But before that, let us understand the need for comprehensive insurance.

Why Do You Need Comprehensive Car Insurance?

While it is required by law for all vehicle owners to have third party insurance cover, this basic level of insurance coverage does not provide you with a lot of benefits. It will only provide financial cover to the third party. So, in the case of an accident, you will have to pay for the repair expenses of your own vehicle out of your own pocket. This is where comprehensive car insurance coverage can help you. Below are some reasons why you need comprehensive insurance for your car:

• Value for Money

Comprehensive insurance may seem expensive when compared to third-party insurance. However, when you compare the level of coverage offered by both, comprehensive car insurance proves to provide value for money.

• Extensive Coverage in Several Situations

Comprehensive insurance provides full coverage to your own car along with third-party liabilities during several situations like fire, theft, accident, natural calamities and man-made disasters.

• Option to Enhance Coverage

Comprehensive car insurance plans give you the option to enhance the coverage of your base plan with various add-on covers. 

Comprehensive Car Insurance Plans Available at Bajaj MARKETS

The comprehensive car insurance premium rates are indicative and calculated for the lowest cc car. The actual premium may vary based on various factors. Kindly check the prevailing premium prices before purchasing your car insurance policy.

Comprehensive Car Insurance Premium

Now that you know about the features and benefits of comprehensive insurance, it’s time you understand how the premium for a comprehensive insurance plan is calculated, what factors determine your premium, and how you can reduce your comprehensive car insurance price.

How is Comprehensive Insurance Premium Calculated?

You can use a car insurance premium calculator to calculate the insurance premiums you will have to pay for your specific model of car with the amount of coverage you have chosen. These insurance calculators have accurate formulas that help calculate the insurance premium amount on the basis of different variables. If you are looking to calculate car insurance premiums manually, you can use the general formula given below:

Own Damage Premium – (No Claim Bonus + Discounts) + Cost of Add-ons + Third-Party Premium as Fixed by the IRDAI = Comprehensive Car Insurance Premium

Factors that Determine Car Insurance Premiums

Here are the main factors that determine car insurance premiums:

• Model and variant of car

The type of car you have is one of the main factors that determine insurance premiums for comprehensive insurance. The more expensive and high maintenance your car is, the higher your insurance premiums will be. In other words, your car insurance premium is directly proportional to the cost of your car.

• Location

You may have to pay a higher premium if you live and drive your car in densely populated cities as the risk of accidents and damage is higher.

• Type of fuel

The fuel type of a car also determines the way premiums are calculated. For instance, premiums for CNG cars are generally higher than those for petrol cars.

• Add-on covers chosen

If you choose to buy add-on covers, you will have to pay extra in the form of premiums.

How to Reduce Your Car Insurance Premium?

Here are some easy ways to reduce your comprehensive car insurance price:

• Anti-theft devices

Install anti-theft devices in your vehicle to enhance its security. Because of this, the chances of your car being stolen reduces and so will your car insurance premiums.

• Higher Deductible

Opting for a higher deductible will lower the comprehensive car insurance cost. A deductible is nothing but the percentage of the claim that you (the policyholder) agree to pay from your pocket.

• Avoid claims for minor expenses

Avoid making small claims on your car insurance plan. Having a claim-free year will earn you NCB benefits. The accumulated NCB can be used to avail discounts on car insurance premiums at the time of renewal.

• Compare car insurance premiums online

Compare different car insurance plans online before buying the policy. That way, you will be able to invest in a plan that is affordable and suits your needs.

How to Purchase a Comprehensive Car Insurance Policy?

These days, you can buy a comprehensive insurance plan for your car while sitting at home. Here are the steps you can follow to buy a comprehensive insurance policy at Bajaj MARKETS:

1. Visit the ‘Car Insurance Premium Calculator’ section on our website. 

2. Enter your car’s registration number and your mobile number along with any other additional information required.

3. Compare all the plans to analyse which plan offers the best features at a price that suits your budget.

4. Pay the car insurance premium online.

That’s it! Your new comprehensive car insurance policy will be sent to your registered e-mail ID.

Inclusions in Comprehensive Car Insurance

Comprehensive car insurance plans in India cover the following things -

• Accidental damage to the insured vehicle

Any damage incurred by your vehicle in an accident will be covered under the comprehensive car insurance policy.

• Damage due to natural calamities

The policy covers damage caused to your vehicle due to natural calamities such as earthquakes, floods, etc.

• Damage due to man-made disasters

The policy covers damage caused to your vehicle due to man-made disasters such as fires, riots, etc.

• Third-party loss/damage

The policy covers damage caused by your vehicle to third-party property and people.

• Personal accidental cover

Any loss incurred by the person driving the vehicle in an accident is financially covered under comprehensive car insurance.

• Add-on covers

Besides this, you can opt for additional benefits on your comprehensive car insurance plan to enhance its scope.

Exclusions under Comprehensive Car Insurance

Comprehensive car insurance usually does not cover the following things -

• Drunk Driving

Any damage or loss incurred when driving under the influence of drugs or alcohol will not be covered under the policy.

• Negligent Driving

Any damage or loss incurred due to negligent driving by the owner or driver will not be covered under the policy. The insurer will also decline the claim if the driver does not have a valid driver’s licence.

• Mechanical Breakdown

The policy does not cover the electrical or mechanical breakdown of the vehicle.

• Regular Wear and Tear

The policy does not cover wear and tear caused to the vehicle.

• Consequential Damages

The policy does not cover consequential damages like damages caused to the tyre while being towed.

• War-like Situations

The damage/loss due to war-like situations is not covered under the policy.

What are the Add-on Covers under Comprehensive Car Insurance?

Insurers in India allow policyholders to enhance the scope of their comprehensive car insurance coverage with add-on covers. Here are a few common add-on benefits available in India 

• Zero Depreciation Cover

With this cover, the insurer will not deduct the vehicle depreciation value from the claim amount at the time of settlement. However, zero depreciation cover can be availed for cars that are less than five years old.

• Return to Invoice

It enables you to get an Insured Declared Value (IDV) same as the purchase price of the vehicle. Return to invoice is ideal for people who have purchased a new car.

• Consumable Cover

This add-on consumable cover  provides coverage for consumables used in the vehicle, such as washers, bolts, nuts, engine oil, coolants, etc.

• Engine Protection Cover

The repair and replacement of the engine of the vehicle are covered under the engine protection add-on.

• No Claim Bonus (NCB) Protection

With NCB protection cover, you can make a claim on your comprehensive car insurance plan at least once in the given year without losing the accumulated NCB benefits.

Read More: Add-on covers in Car Insurance

What are the Benefits of Comprehensive Car Insurance?

Following are a few benefits of comprehensive insurance coverage -

• Extensive Coverage

Comprehensive insurance offers full coverage to your vehicle as it covers both third-party damages as well as damage to your own vehicle arising due to accidents, theft, or natural/man-made disasters.

• Peace of Mind

With a comprehensive car insurance plan, you can drive your vehicle stress-free. Having a comprehensive car insurance plan eliminates the need to invest in a third-party car insurance plan separately. Since you benefit from the third party and own damage coverage under a single plan, it saves you a fortune.

• No Claim Bonus (NCB)

With a comprehensive car insurance policy, you are eligible to earn a No Claim Bonus or NCB reward for every claim-free year. You can use these rewards to get a reduction in your car insurance policy renewal premium.

Who Should Buy a Comprehensive Car Insurance Policy? 

You must consider buying a comprehensive car insurance plan for your vehicle if you:

• Live in Crowded Cities

You must choose a comprehensive insurance plan if you live in metropolitan areas with a high density of population. This is because vehicles are more likely to get into motor accidents in such cities as compared to remote areas. The chances of theft and vandalism are also higher in big cities.

• Are a Frequent Traveller

If you travel extensively in your car, you should opt for a comprehensive insurance policy. Most comprehensive car insurance plans offer roadside assistance as well as access to network garages which can be highly beneficial if your car malfunctions or breaks down when you are travelling.

• Have a Brand-New Car

As a new car owner, you should definitely protect your investment with a comprehensive insurance plan to ensure it remains protected and has financial coverage in case of damage or accidents.

• Have a High-End Car

You should choose a comprehensive insurance plan for your high-end car to make sure your car remains financially protected. In case you have an expensive car but no insurance, you may have to shell out a very high amount of money for any repairs and accidental damage.

What are the Features of a Comprehensive Car Insurance Policy? 

Here are some important features of comprehensive insurance that you should know:

• While third party car insurance only provides cover to the third party involved in an accident, a comprehensive insurance plan also provides cover to the policyholder and their vehicle.

• All kinds of car damage are covered under comprehensive insurance (unless specified otherwise in exclusions). For instance, if your car gets damaged by an unknown person while it is parked, you will still be eligible to make an insurance claim.

• Comprehensive insurance provides an extended coverage that includes features like personal accident cover, own damage cover, accidental damage cover, etc which are not a part of a third-party insurance plan.

• Due to the extended coverage offered, the comprehensive car insurance cost is higher compared to third-party car insurance. However, you can rest easy knowing that you have an advanced level of protection and are covered financially in case of an accident or damage to your car.

Comprehensive Insurance Vs Third Party Car Insurance 

Now, let’s take a look at the key differences between comprehensive insurance coverage and third-party insurance:

How to Claim a Comprehensive Car Insurance Policy

There are two ways to claim your comprehensive car insurance:

• Cashless Claim

Here are the steps to follow to file a cashless claim under your comprehensive car insurance policy:

1. In case of an accident or damage to the car, immediately contact your insurance company to inform them about the damage and your intention to file for an insurance claim.

2. Take your vehicle to the nearest network garage to assess the amount of damage.

3. You can choose to file an insurance claim online as most companies offer online claim services.

4. Upload necessary documents such as photos of the car, insurance papers, a copy of the FIR of the accident, etc.

5. Once your claim is submitted, the network garage will begin the repair and replacement of the damaged car parts. Once the repairs are completed, the insurance company will pay the garage for the expenses incurred.

• Reimbursement Claim

Follow the steps mentioned below to file a reimbursement claim against your comprehensive policy:

1. Contact your insurance company and inform them about the damage and your intention to file an insurance claim.

2. Get your vehicle repaired at a garage of your choice and pay for the expenses incurred.

3. Now, to file your reimbursement claim online, upload the necessary documents such as photos of the car, insurance papers, a copy of the FIR of the accident, etc.

4. Once your claim is submitted, the insurance company will review your claim and process it once approved.

Read more: Car Insurance Claim Process

Conclusion

A comprehensive policy is an ideal option if you want all-around protection for your car. Along with third-party coverage, the policy offers protection to own vehicles as well. So, for just a slightly higher premium, a comprehensive car insurance plan protects you financially at all times. So, wait no more! Secure your precious car with the best comprehensive car insurance plans available at Bajaj MARKETS now!

Check Out Car Insurance Plans Available at Bajaj MARKETS