What is Comprehensive Car Insurance Coverage

Comprehensive Car Insurance Meaning and Benefits

28 Oct 2020
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A comprehensive car insurance plan is an extensive coverage that protects you and your vehicle against third-party liabilities and own damage. 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 a mandatory policy, 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 plans in India. Let us begin by understanding the importance of comprehensive car insurance.

Why Do You Need Comprehensive Car Insurance?

As mentioned earlier, comprehensive car insurance provides extensive coverage to the policyholder and the insured vehicle. Unlike third party car insurance, the policy covers damage incurred by the car in accidents. It also compensates for the loss of the car due to theft, natural and man-made calamities.

Considering the coverage the policy offers, it is safe to say that investing in a comprehensive car insurance plan is a wise financial decision. Besides, it also covers you (the policyholder) against third-party liabilities. Furthermore, keep reading to understand how the comprehensive coverage comes in handy during sudden car damages.

How Does Comprehensive Car Insurance Work?

Much like third party car insurance, comprehensive car insurance covers third-party liabilities. That means the policy will cover any damage caused by your vehicle to a third-party person or property. In addition to this, the policy extends coverage to the 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 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 premium 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 benefits of comprehensive car insurance plans in India.

Benefits of Comprehensive Car Insurance

Following are a few benefits of comprehensive car insurance plan -

  • Extensive Coverage

Comprehensive car insurance offers complete protection 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 policy. Since you benefit from the third party and own damage coverage under a single plan, it saves you a fortune.

Inclusions of 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.

Add-on Covers on Comprehensive Car Insurance

Insurers in India allow policyholders to enhance the scope of their comprehensive car insurance 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 same as the purchase price of the vehicle. Return to invoice is ideal for people who have purchased a new car.

  • Breakdown Assistance Cover:

With this cover, the policyholder can avail roadside breakdown assistance at any time anywhere.

  • Consumable Cover:

This cover ensures that the consumables used in the vehicle, such as washers, nuts, coolants, bolts, engine oil, etc., are covered under it.

  • Engine & Gearbox Protection:

The repair and replacement of the engine and gearbox of the vehicle are covered under this 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.

Exclusions of Comprehensive Car Insurance

Comprehensive car insurance usually does not cover the following things -

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

  2. Any damage or loss incurred due to negligent driving by the owner or driver will not be covered under the policy.

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

  4. The insurer will decline the claim if the driver is driving without a valid driver’s licence.

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

  6. The policy does not cover consequential damages.

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

Now that you have a fair understanding of comprehensive car insurance plans let us understand how you can lower the premiums of the policy to make it affordable.

How to Reduce Comprehensive Car Insurance Premium?

  1. 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.

  2. Opting for a higher deductible will lower the car insurance premium amount. A deductible is nothing but the percentage of the claim that the policyholder agrees to pay from his/her pocket.

  3. Avoid making small claims on your car insurance plan. Having a claim-free year will earn you No Claim Bonus (NCB) benefits. The accumulated NCB can be used to avail discounts on car insurance premiums at the time of renewal.

  4. 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 best suits your needs.

Now, you can proceed to buy comprehensive car insurance plans at Finserv MARKETS online. The reason to do so is explained below.

Why Choose Finserv MARKETS for Comprehensive Car Insurance?

The reason you should buy comprehensive car insurance at Finserv MARKETS is as follows -

  • Trusted companion:

We have served nearly 100 million+ happy customers across India. Time and again, they have chosen Finserv MARKETS as their trusted financial partner. So, it's your time now!

  • Hassle-free renewals:

Just as easy it is to buy car insurance with us, so is the renewal process. So, you can renew your comprehensive insurance coverage in no time.

  • Quick online process:

Buying/renewing car insurance at Finserv MARKETS involves no tedious paperwork. Pick the plan of your choice and buy online in just a few minutes.

  • Bespoke car insurance plans:

From different plans to additional rider covers available, Finserv MARKETS lets you customize your insurance plans as per your needs.

  • Calculate your car insurance premiums:

Before buying the policy, you can use our car insurance premium calculator to determine how much the policy will cost you. Based on it, you can choose a plan that best suits your needs.

Conclusion

A comprehensive car insurance plan is an ideal option if you want all-around protection for your car. Along with third-party coverage, the policy offers protection to own vehicle as well. So, for just a slightly higher premium, a comprehensive car insurance plan protects you financially at all times.

If you are looking for minimal coverage at a low price, opt for third party car insurance. Read more about the third party car insurance by visiting Finserv MARKETS online.

FAQs on Comprehensive Car Insurance

  • ✔️How can I buy comprehensive car insurance at Finserv MARKETS?

    Just follow the steps given below to buy comprehensive car insurance at Finserv MARKETS.

    1. Visit Finserv MARKETS and go to the ‘car insurance’ section.

    2. Choose the type of coverage you need - comprehensive car insurance in this case.

    3. Fill the application form with personal details.

    4. Upload the necessary documents.

    5. Pay the premium amount online.

    6. The policy will be issued in no time.

  • ✔️How can I claim on my comprehensive car insurance at Finserv MARKETS?

    Here’s what you need to know when claiming on your comprehensive car insurance plan at Finserv MARKETS.

    1. Register your claim request at Finserv MARKETS by clicking on the Register a claim link.

    2. Fill the claim application form with personal and policy details.

    3. Upload the supporting documents.

    4. Submit the application and wait for the insurer to verify the details provided.

    5. Upon verification, the insurer will approve/reject your claim request.

  • ✔️What’s better - third party car insurance or comprehensive car insurance?

    Third party car insurance only covers third-party liabilities. For extensive coverage, you should invest in a comprehensive car insurance plan. Both these policies are available on Finserv MARKETS online. So, go ahead and buy a plan that is affordable and fulfils your needs.

  • ✔️What is NCB in comprehensive car insurance?

    The No Claim Bonus (NCB) in comprehensive car insurance is a reward provided to the policyholders for each claim-free year. The accumulated NCB benefit can be used to avail discounts on car insurance premiums at the time of renewal.