What is Covered in A Comprehensive Car Insurance Policy?

What do you think of your car? Is it just a mode of travel for you or one of your most prized possessions?

Well, whatever it is, what is for certain is that you do love your money and you won’t like to see it go down the drain even when you can take precautions. Getting into a car accident and then paying for the repair of your car from your pocket while the other vehicle owner gets all the damages from your insurance company is like watching your money go waste, right? This is what happens when the mandatory third party insurance policy comes into effect in case of an accident.

What About Comprehensive Car Policy?

A comprehensive car insurance plan is one that is costlier compared to third party insurance, but the benefits provided are much more than a third party car policy. Let’s have a look at what all the policy covers and how you can save your money by buying this policy:

1. Damage to your car

Apart from covering the third party vehicle involved in an accident with your car, this policy will also cover for any and every damage caused to your car. It would pay for the complete repair work subject to terms and conditions specified in your policy documents.

2. Injuries to Self

The policy provides for covering the medical expenses incurred due to injuries/death to owner driver. You can get medical treatment in a hospital and file for necessary claims based on the sum assured.

3. Injuries to Third Party

A comprehensive policy will also cover for any bodily injuries/death/disability caused to the third party involved in the accident .  This would include the driver of the other vehicle as well as any passengers sitting in it.

4. Theft

Car thefts are on a rise in major cities of the country and this would mean a total loss to you. Imagine your brand new car getting stolen despite having security features in place! Scary, right? With comprehensive policy, the insurer will pay you the amount as mentioned in the policy.

5. Natural Calamities

If your car gets damaged due to flooding, fire or any other natural calamities, the insurer will pay you damages to get it repaired or change the spare parts. Without this cover, you might have to spend as much money as needed to buy a new car!

6. Riots

Civil unrest in the society can lead to riots or acts of vandalism and your car might become an unavoidable target of mob frustration. Any damages caused due to such acts of violence will also be covered by the comprehensive car insurance plan.

For many, buying comprehensive car insurance is a costly proposition as the premiums are higher compared to a simple third party insurance. However, in case of an accident, the price paid to get insured looks extremely nominal in comparison to the benefits derived. This kind of a policy provides complete coverage to your vehicle as well as insulates you against any legal liabilities arising out of an accident. It might not lessen the trauma of an accident or the losses caused due to it, but it can surely help you to deal with it without stressing over the financial aspects of it!

Have a long term vision and invest in comprehensive policy!

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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