It is essential to have a motor insurance policy to secure oneself from expenses that might arise due to any damages, loss or other unavoidable incidents. The third-party car insurance policy, which is mandatory to have offers financial coverage for third-party liabilities only. This is where a comprehensive car insurance policy comes into the picture.
A comprehensive car insurance policy offers extensive coverage, protecting individuals and their vehicles against their own damages and third-party liabilities during mishaps. Even though this policy is not mandatory, there are several reasons why car owners must opt for it.
Reasons to buy a comprehensive car insurance policy
Here are some of the various reasons why car owners should purchase a comprehensive car insurance policy in India:
1. Get own damage cover
Besides the mandatory third-party liability cover, this policy covers expenses for damages the insured vehicle sustains due to accident, fire, theft, natural disasters, etc.
2. Get a personal accident cover
A comprehensive car insurance policyholder receives a compulsory personal accident cover. This compensation can be beneficial in the event of disability or death of the insured car’s driver or owner resulting from an accident.
3. Get a third-party liability cover
With this policy, individuals receive coverage against the financial liabilities resulting from damages to third-party property or vehicle and physical injury.
4. Get cashless claim benefit
With a comprehensive car insurance policy, individuals can benefit from a cashless facility for easy claim settlement. This facility allows a policyholder to get an insured vehicle repaired in an authorised network garage without making any payment. This is because the insurance company takes care of the repair bill directly with the garage.
5. Benefit from No Claim Bonus (NCB)
Several insurance providers offer a No Claim Bonus (NCB) on a comprehensive car insurance policy. Generally, policyholders receive this bonus for not raising any claim during the policy tenor. This bonus gets accumulated yearly, and individuals can use it to receive a discount while renewing the policy.
However, some reputed insurance providers allow individuals to get this bonus even after raising certain claims.
6. Avail of additional coverage options
Individuals who buy a comprehensive car insurance policy can purchase several additional covers at a certain extra premium amount to receive improved policy coverage. Some of these include:
· Engine protection cover: This additional cover allows individuals to repair their car engine without extra payments. The add-on includes engine components like pistons, connecting rods, etc.
· Zero depreciation cover: In this add-on, the concerned insurer does not consider depreciation, and the reimbursement of repair costs is done at original rates.
· Tyre protection cover: This cover protects the vehicle’s tyres from damages or loss in non-accidental circumstances and during accidents.
· Return to invoice: This additional cover enables individuals to get an IDV (Insured Declared Value) equal to the vehicle’s invoice price instead of the current market value in case of total loss claims.
· Breakdown assistance cover: This cover allows policyholders to access breakdown or roadside assistance from the insurer if the insured vehicle breaks down in the middle of the journey.
· Consumable cover: This additional cover ensures that every consumable used to repair an insured vehicle is covered under the policy. The consumables include nuts, washers, bolts, coolant, engine oil, etc.
To buy a comprehensive policy, interested car owners can visit the portal of Bajaj Finance or download the Bajaj Finserv App, where they can find curated motor insurance policies to choose from.
Things to consider while buying a comprehensive car insurance policy for an old vehicle
A comprehensive car insurance policy covers all types of cars - new and old. With the benefits of buying a comprehensive car insurance policy now clear, individuals must specifically consider certain things while buying this policy for an old vehicle.
Before purchasing a policy, individuals must consider the vehicle’s age and how long they plan to keep using it. For example, you own a car that is 11 years old and use the car regularly and look forward to doing so for the next 4 years. In this scenario, purchasing a comprehensive car insurance policy will be appropriate. That is because the market value of older cars is lower, so you can get the vehicle insured for a lesser premium.
However, individuals must note that most financial institutions do not offer a comprehensive car insurance policy to vehicles that are 15 years old or more. So one must check with the concerned insurance provider regarding any such condition.
Thus, it is quite evident that a comprehensive car insurance policy proves to be an ideal option for individuals seeking all-round protection for their vehicles. In addition, owners of old cars must keep in mind the above-mentioned details.
