Comprehensive Car Insurance plan is specifically meant for covering all the damages caused to your car. A car insurance plan is simply a signed contract between the car owner and insurance provider for paying a specified premium to the insurance company. In exchange for that premium, the insurer promises to pay for any risks or damages caused by any of the reasons mentioned above.
Car or Vehicle insurance is categorized as one of the non-life insurances because it covers only the material risks associated with car accidents. However, comprehensive car insurance policy covers both the material and personal damages along with third-party damages. Hence, it is advisable to choose this policy while deciding between the two types of policies. These policies also provide you with the portability facility where you can transfer your plan from one insurance provider to another and all the benefits can be carried forward.
Advantages of Purchasing a Comprehensive Car Insurance
Advantage 1: Though third-party car insurance is mandatory by law, it is always recommended to avail comprehensive car insurance due to its higher benefits.
Advantage 2: It is regarded as highest protection cover you can avail as you don’t have to worry about any potential losses due to accidents.
Advantage 3: A comprehensive plan covers all the risks associated with the damages done to you and other party involved in the accident.
Advantage 4: You can also extend this policy by availing add-ons like the cover for accessories, engine and medical expenditures.
Advantage 5: Whether you are at fault or not, the damages would be covered under this policy. Moreover, there are no extra payments of premiums for meeting liabilities caused to the third party.
Advantage 6: If you have bought an expensive and brand-new car, it is advisable to buy a comprehensive plan. There would be fewer damages and costs of repairing even if you would have to pay higher premiums.
Advantage 7: A third party car insurance would only provide insurance for the damages caused to the life and property of the party involved in an accident. However, Comprehensive insurance plan pays for all the expenses including third-party and your vehicle too.
Advantage 8: You are also eligible for a cashless compensation in case of any accidents and repair costs owing from it. The insurance providers have tie-ups with many garages for settling cashless claims. This feature relieves you from the worries of going to the company and asking for reimbursements.
Advantage 9: There is an added benefit of No-claim Bonus (NCB) which is provided to the insured when no claim has been made by them in a year. Hence, if there is no claim made by the policyholder in a year, you are eligible for a 5% – 10% of the IDV as a bonus when you renew it for another year. It can be carried forward to the next year and the maximum limit you can avail NCB is up to 50%.
Advantage 10: There are some mandatory voluntary deductibles which are necessary for the policyholder to pay for each claim. Generally, such deductibles are the minimum guaranteed amounts set at Rs. 1000 or Rs. 2000 to be paid while you make claims. These deductibles are for decreasing the number of premiums and also eliminates the chances of small claims.
However, there definitely are some risks which are not covered by a comprehensive car policy. These include worn and torn-out damages due to ageing, any breakage of electric or mechanical parts, any harm done to tyres, the harm done by the driver without a license, under drug influence, or by war or nuclear damages.