Comprehensive car insurance is an all-around car insurance policy that covers you from both third-party damages & losses, and own damages. This includes protection from unforeseen losses such as an accident, natural calamity, fire, or theft. It is also known as 'own-damage' or a 'other than collision' car insurance as this policy also protects you financially against any losses that might arise not due to collision.
A comprehensive car insurance policy is the most superior kind of protection you can provide your car with. It is one step ahead of the basic third-party car insurance policy that offers protection and security only for the third-party or the vehicle you dash into. Third-party insurance fails to cover your vehicle against the possibility of an accident. Comprehensive insurance on the other hand provides extensive coverage and offers more services.
Policyholders can enhance the coverage of a comprehensive policy with the help of several add-on covers such as zero depreciation cover, NCB cover, and Bi-fuel kit cover, etc., which are available with it. Although a comprehensive car insurance policy is not mandatory by law unlike a third party only car insurance policy, it is anyway recommended.
Table of Content:
What Is Comprehensive Car Insurance?
Comprehensive car insurance is a standalone car insurance policy that provides complete protection for the vehicle owner. It usually includes three categories of coverage:
1. Third-party liability insurance: This part of the comprehensive coverage safeguards the car owner from legal liability claims from third parties following an accident. So, if a vehicle insured with this coverage meets with an accident in which a third party was injured or faced death, the insurance policy will pay the third party/beneficiary for the losses.
2. Own-damage insurance: This part of the comprehensive car insurance plan offers extensive protection to the insured car. It safeguards the vehicle from damages due to:-
- Natural Disasters: - hail storms, floods, lightning, earthquakes, etc.
- Man-made disasters: - vandalism, riots, strikes, etc.
- In-transit damages: - road, rail, air, lift, inland waterways, etc.
- It safeguards the vehicle from theft, accidents, and fire.
3. Personal accident cover for driver - The comprehensive car insurance policy also protects the owner-driver of the vehicle from accidental injuries and death.
Who Should Buy a Comprehensive Car Insurance Policy?
Do you doubt if a comprehensive car insurance policy is suitable for you or not, below mentioned is the list of people who should consider purchasing a comprehensive car insurance policy?
1. New Car Owner: New car owners should consider purchasing a comprehensive car insurance policy to ensure their new investment is safeguarded as buying a new car can be a major financial investment.
2. Luxury Car Owner: Fancy cars are a huge investment and tend to get broken into or stolen more often as compared to regular cars. A person who owns a fancy car such as a BMW/Mercedes should consider a comprehensive car insurance policy to keep your prized possession secure from damages/theft.
3. Road Tripper: If you love to travel to different places and cities by your car then you must have a comprehensive car insurance policy to safeguard your car from any emergency and you can also consider a roadside assistance add-on.
4. A resident of Metropolitan City: If you are a resident of a metropolitan area/city then you should consider purchasing a comprehensive car insurance policy to safeguard your car from the risk of accidents, traffic, pollution, etc.
5. Overprotective Car Owner: If you are a person who easily gets worried even if you see a single scratch on your car, then you must have a comprehensive car insurance policy because this policy will provide peace of mind while you are driving.
Real Life Scenario:
For example, a car has met with a road accident. Since that car had a comprehensive policy, thus not only the third party damages will be covered but his own car damage/personal injuries will also be covered under the same. Now imagine, if he doesn’t have this policy, what would be the case. Well, he needs to manage the personal damages from his pocket. Thus, it will be a big financial burden on him.
Say someone drives a Honda Accord worth Rs.10, 000, with an Rs.1, 000 comprehensive deductibles. If a tornado destroys the car, the driver will receive Rs.9, 000 from the insurance company. If they don’t have comprehensive coverage and a tornado destroys the vehicle, the collision and liability portions of the policy won’t cover the damage. The driver will be responsible for the entire Rs.10,000 loss. A driver might have to get a loan to purchase a replacement vehicle or settle for something less expensive if they don’t have Rs.10,000 to spend on an equivalent replacement.
Benefits of Comprehensive Car Insurance Policy:
A comprehensive car insurance policy protects your car from any unforeseen event. It also covers losses incurred during an accident.
- Highest level of protection you can give your car.
- It’s your fault in an accident, with comprehensive car insurance you can claim for losses incurred in such situations.
- It covers lawsuits, including legal fees brought against you as a result of an accident.
- Peace of mind and financial protection.
- Offers financial assist in case your car is cancelled.
- It covers damages caused to your car during an accident.
- Easy to buy online.
- Wide coverage due to third party liabilities, own damage, and personal accident coverage.
What is Comprehensive Car Insurance Covers?
A comprehensive plan protects your car from various situations other than the third party liability coverage, some of which are mentioned below:
Theft incidents: One of the important benefits that this type of coverage offers is for your stolen vehicle. The case may be that the vehicle is never recovered or recovered in a damaged state. Comprehensive policies cover this type of loss, subtracting your deductibles. However, if you have any aftermarket equipment installed in your car, like custom stereo systems, etc., you need to inform about those to the insurance company at the time of purchase of the policy, in order to get them covered under the same policy.
Damage caused by natural calamities: A comprehensive coverage also protects you and your vehicle against damages caused by factors referred to as "Act Of God". This refers to natural calamities like floods, cyclones, hurricane, tornado, riot, etc.
Accidental Damages: This refers to any damage caused by a collision or any other type of accident. If you don't have a comprehensive plan, you might have to bear the costs by yourself and it becomes even more painful if you possess an expensive car or have bought it on credit. This car insurance policy ensures that almost all kinds of damages caused to your vehicle on the road will be covered, which in turn gives you peace of mind.
Costs of transportation: If your car breaks down midway for reasons mentioned under the terms and conditions of the insurance policy, the comprehensive policy will pay for alternate transportation. Since the rates of rental cars or taxis go up really fast, this can be considered a good money-saving technique.
Third Party Losses: In an unfortunate event of third party loss, your comprehensive policy will take care of the legal and financial liabilities.
Personal Injuries /Accidental death: In case you meet with an accident that leads to injuries or unfortunately death, your comprehensive policy will be by your side.
Damages caused in Fire: If your car catches fire, your comprehensive car policy will pay for the damages.
What Does Comprehensive Insurance Not Cover?
If your vehicle undergoes damage due to a collision, then a car insurance claim cannot be made unless you have comprehensive car insurance. Similarly, there are a bunch of things that have been excluded from comprehensive car insurance:
- Depreciation
- Wear and tear of the vehicle
- Electrical or Mechanical breakdown
- Damage caused to the vehicle by a person driving without a valid license
- Damage caused due to drunken driving
- Damage caused due to driving under the influence of drugs
- Damage to tires and tubes. However, if the vehicle is damaged at the same time, the liability of the company will be limited to 50% of the replacement cost
- Loss/damage to the car caused by war, mutiny, or nuclear risk.
Why Should You Move To Comprehensive Car Insurance?
Most people make the same mistake of purchasing third-party car insurance only because it’s quite affordable. What they don’t understand is that they may have to bear the expenses of repair in case of small accidents or damage to their car, this is where comprehensive car insurance comes in handy. One should consider comprehensive car insurance despite it being a little more expensive than third-party car insurance due to the below-given reasons:
1. Value for Money: When it comes to cost, comprehensive covers prove to be more economical and cost-effective in comparison to the third party plan. A comprehensive policy might look to be a little costlier than third-party insurance, but when you compare the level of damages they insure, the former proves to be the value for money option.
2. Covers Car in Several Situations: Unlike the third party car insurance cover, a comprehensive insurance policy covers your car too along with your third party liabilities. From theft, accident, fire, natural calamities, and man-made disasters to liability towards the third party, this cover takes care of everything.
3. Enhancement of Coverage: The third-party car insurance cover gives a limited coverage option, while the comprehensive car insurance gives an extensive cover which can further be extended with the inclusion of add-on covers. By paying a little more premiums you can get as many add-ons as suits you.
4. Pick the Insured Declared value (IDV): This is the amount your insurer is liable to pay the policyholder where the insured vehicle is damaged beyond repair or is stolen. You can reduce the premium by selecting a lower IDV. However, this will also result in lower claims pay-out in case of a total loss.
5. Flexibility: It is not like if you have purchased a Comprehensive Plan, then you must stick with it. If you feel you are not comfortable with the plan, you can change it while renewing the policy. You can also switch the insurance company.
Add-ons under Comprehensive Car Insurance Policy:
Get better coverage for your car with these add-on covers available with a Comprehensive Car Insurance policy.
- Zero Depreciation Cover: If your car is less than 5 years old, get this cover to avoid paying for the cost of depreciation during your car insurance claims. Read more about Zero Depreciation Car Insurance.
- Breakdown Assistance: We all need a little help sometimes! That’s why we have this cover to help you out in situations where you need a helping hand. Read more about Roadside Assistance.
- Tyre Protect Cover: Similar to an engine gearbox cover. Except this one covers and protects your tyre in all possible situations, apart from just an accident. Know more about the tyre protect add-on.
- Engine & Gearbox Protection: Car insurance will only cover engine or gearbox damage when it happens in an accident but, this cover lets you protect your engine and gearbox in all possible situations. Read more about the Engine Protection cover.
- Return to Invoice Cover: Ideal for new cars, this cover gives you the benefit of literally keeping your car as good as new. In case of theft, or damage beyond repair this cover gives you back the complete value of your car’s invoice value. Read more about RTI in car insurance.
- Consumable Cover: Every small thing makes a difference. That’s why, this cover is dedicated to protecting all your car’s nitty-gritty such as engine oils, screws, nuts, and more, regardless of any accidents. Read more about the Consumable cover.
- Passenger Cover: Your comprehensive car insurance already covers you but why not protect the person riding with you, too? Read more about Passenger Cover.
- NCB Cover: Additionally, the No Claim Bonus or NCB is offered on the own-damage cover within the plan. The NCB is a reward given by the insurance provider to the policyholder for a claim-free year. It is accumulative in nature and goes up to 50% in the 5th consecutive claim-free year. The following chart explains how the NCB is calculated:
| Number of Claim Free Years |
NCB Percentage |
| 1st Year |
20% |
| 2nd Year |
25% |
| 3rd Year |
35% |
| 4th Year |
45% |
| 5th Year |
50% |
Comprehensive Car Insurance vs Third party Car Insurance:
|
Comprehensive Cover |
Third-Party Cover |
| Coverage |
In addition to third-party liability coverage; theft, damage from man-made or natural calamities, fire, etc. are also covered for your car. |
It covers the damages caused to another individual or their property due to the insured car. |
| Mandatory |
It is not compulsory |
It is Compulsory. |
| Premium |
The cost of this car insurance policy is higher due to its wider coverage. |
This is priced lower and affordable due to its limited coverage. |
| Discounts |
Discounts in the form of anti-theft devices, voluntary deductibles, and no-claim bonus are available. |
No discounts are available. |
| Add-ons |
You can customize your car insurance plan by adding specific add-ons and covers. |
No customizations are possible under this car insurance plan. |
| Benefits |
Provides a financial cover for own vehicle as well as legal liability cover for third-party damages. |
Provides a financial cover and legal liability cover if you hurt someone / damage something accidentally. |
Before buying your comprehensive car insurance policy, it is important that you should do a comparison. There are certain parameters that you need to keep in mind while comparing your policy.
| Damages to a third party property or person |
|
|
| Car theft |
|
|
| Damage or loss to car due to an accident |
|
|
| Damage or loss to car due to natural/man-made disasters |
|
|
| No Claim Bonus |
|
|
| Add-on Covers |
|
|
| Customization of Coverages |
|
|
Comprehensive Car Insurance vs Zero Depreciation/Bumper to Bumper Coverage:
|
Comprehensive Cover |
Zero Depreciation Cover |
| Age of the Car |
The depreciation increases as the age of the car increases. |
Depreciation will be considered nil. |
| Claim Settlement Amount |
Claim settlement amount is low due to the depreciation estimated and applicable for all parts of the car. |
Claim settlement is high because estimation and application of depreciation is done under this policy. |
| Premium Amount |
Low Premiums |
High Premiums |
| Car Parts Repair |
50% depreciation on all repairing parts. |
All repairing costs are covered. |
Comprehensive Car Insurance for New Car vs Old Car:
Old Car:
- The bad performance of the old car can lead to a mishap or a hit. If you have a car manufactured in 2005 and its engine has an issue, it leads to an accident. In such a situation, a car insurance policy will be beneficial for the car owner.
- In case of third-party property damage by an old car. The person driving the old car will be held liable for the damage, and the owner will have to pay for the losses. This explains the need to purchase insurance cover for an old car.
New Car:
- New cars have a higher Insured Declared Value (IDV). So, the part of the premium corresponding to IDV is higher than that of used cars.
- New cars will have the latest safety devices. So, these vehicles pose low risk with respect to theft. The component of the insurance premium corresponding to this factor will be lower.
- Repair of new vehicles cost more. So, insurance charges could be slightly higher.
- New cars are not prone to breakdowns and other such unexpected events that result in heavy expenses. This contributes to a lower insurance premium.
Comprehensive Car Insurance Premium Calculator:
The premium of a comprehensive car insurance policy is highly affected by the following factors:
Age of the Car Owner: People below the age of 25 years are considered risky drivers. Therefore, insurance companies offer car insurance at a higher premium to individuals in the age group of 18 years to 25 years.
Make, Model and Variant of the Car: Insurance companies offer insurance to high-end cars such as BMW, Audi, etc., at a higher premium when compared to budget cars such as Alto, Santro, and so on, due to the higher value of their parts.
Geographical Location: The registration location also affects the premium cost as the cars are insured at a higher premium in urban areas where traffic density is higher in comparison to the suburban areas as the urban locations are more prone to accidents.
Type of Fuel: In comparison to petrol or diesel cars, a CNG fitted car is charged a higher premium by the insurance companies.
Manufacturing Year: With age the depreciation reduces the value of the car in the market which ultimately decreases its Insured Declared Value (IDV). The insurers charge a lesser premium amount for cars with lesser IDV.
No Claim Bonus (NCB): The No Claim Bonus is provided by insurance companies to the insured person for making no claim in a policy year. This benefit is given in terms of discount which ranges from 20% to 50% as it accumulates with every claim-free year.
Discounts: Different types of discounts tend to decrease the premium of car insurance. For example, you can get a 2.5% discount on the premium, if your car acquires an ARAI approved anti-theft device. You are also entitled to get a discount for being a member of the Automobile Association of India (AAI).
[Comprehensive Car Insurance Premium = Own Damage Premium – (No Claim Bonus + Discounts) + Cost of Add-ons + Third Party Premium as Fixed by the IRDAI.]
Comprehensive Car Insurance Claim Process:
- Inform your insurance company
- File an FIR
- Schedule Inspection
- Claim Settlement.
Documents Required for Comprehensive Car Insurance:
- Duly filled policy claim form
- Company policy papers
- Copy of driver’s license
- Copy of RC of the car
- The ID of the claimant
- Copy of the MCR.
Best Comprehensive Car Insurance Companies in India 2022:
| Companies |
IDV |
Discounts |
Premium |
|
| Edelweiss |
Rs. 2, 87,569 |
NCB Discount |
5483 |
View Plan |
| Royal Sundaram |
Rs. 2, 74,748 |
- 24x7 Roadside Assistance
- NCB Discount
|
5636 |
View Plan |
| United India |
Rs. 2, 91,921 |
|
5234 |
View Plan |
| Oriental |
Rs. 2, 75,703 |
|
5367 |
View Plan |
| TATA AIG |
Rs. 3, 38,400 |
- 24x7 Roadside Assistance
- Key Replacement
|
4883 |
View Plan |
| HDFC ERGO |
Rs. 3, 44,400 |
- NCB Discount
- Commercial Discount
|
4848 |
View Plan |
| Bajaj Allianz |
Rs. 3, 56,400 |
24x7 Roadside Assistance |
4388 |
View Plan |
| Reliance |
Rs. 3, 54,635 |
Key Replacement |
5288 |
View Plan |
How to Renew Comprehensive Car Insurance Policy Online?
Car insurance can be purchased online from the PolicyBachat portal in two easy steps. At PolicyBachat we cater unbiased comparison of quotes, a 24*7 customer assistance team your motive is to give our customers the right quotes with compare car insurance rates online.
You have the option to purchase this cover via the online mode or the offline mode while buying or renewing your car insurance policy. You can buy a Cover by following the below mentioned steps.
- Go to compare car insurance quotes online at PolicyBachat.com
- Fill in the required details select your Car Model & Variant, RTO Location, Registration date, and Email address.
- Click on the “START SAVING MONEY”.
- Choose a Comprehensive Insurance plan.
- Premiums with different insurance companies are displayed with low premiums.
- Select the Personal Belonging Cover from the available Add-ons
- After that fill in the ‘vehicle owner details and personal details.
- Purchase the best Car Insurance Policy using online payment
- If any queries are raised call: 1800–123–4003.
How to Buy Comprehensive Car Insurance Policy Online?
At PolicyBachat.com you can Purchase a Comprehensive car insurance policy online is easy and quickly sitting at home. Follow the below-mentioned steps to buy a Comprehensive car insurance policy within 5 minutes.
- Go to 'Car Insurance Online' to compare quotes above this article. Fill in the registration number of your car and required details and tap on 'Start Save Money.
- On the quotes section, either go with your current provider or choose another one to suit your needs.
- Make the payment and you will receive the confirmation at your email address. If assistance needs Call: 1800-123-4003.
As per state law, the minimum car insurance requirement is to at least possess a Standard or Third-Party plan. However, this does not give you protection in case of accidents or other damages. A Comprehensive car insurance policy offers greater coverage than any other type of policy.
Unlike The TOP and the TPFT car insurance policies, a comprehensive plan protects you from a wide range of unforeseen disasters like accidental damages, besides covering you for third-party liabilities and loss due to fire and thefts.
FAQs of Comprehensive Car Insurance Coverage:
Is Comprehensive Car Insurance Full Coverage?
A comprehensive car insurance policy can provide maximum coverage to your car. Especially when you customize the policy by adding a suitable add-on to the policy. Comprehensive policy covers damage to the car due to accidents, car theft, losses to a third party, damage to the car due to natural damages, personal injuries or death caused in an accident, damages caused in a fire. Comprehensive car insurance coverage is full coverage.
How is comprehensive car insurance different from zero-depreciation car insurance?
Comprehensive car insurance is a type of car insurance policy, while zero depreciation is an add-on you can opt for in your comprehensive car insurance policy.
Is it Worth Getting Fully Comprehensive Car insurance?
A comprehensive car insurance policy can be a blessing for all car owners as it provides monetary help on repair or replacement expenses of your car in case of accidents or damage to your car. A comprehensive car insurance policy saves your money, provides coverage to your car, and covers you legally as it already provides cover for third-party damages. It is safe to say that it is worth it to have a fully comprehensive car insurance policy.
Do I Need Comprehensive Car Insurance on an Old Car?
Owning an old car can greatly cost you, but if that car is near your heart, then the expenditure is worth it. But before buying the insurance for your old car, it will be good if you follow the preceding points. The value of an older car typically depreciates over time. You can drop comprehensive coverage from your plan if your car is paid off. If you get rid of coverage and your older vehicle is damaged in a mishap, your policy would not pay for the damage.
Although comprehensive car insurance offers more coverage than a Third-party cover, a comprehensive cover doesn't need to always be expensive. And now that you know what comprehensive insurance for a car is you can compare comprehensive car insurance quotes online to check what suits you best.
Conclusion
Comprehensive car insurance is an extensive motor insurance plan that covers the insured person against both, own damages and any third party liabilities. It is also known as 'own-damage' or a 'other than collision' car insurance as this policy also protects you financially against any losses that might arise not due to collision. Comprehensive car insurance covers any unforeseen incidents such as an accident, fire, theft, or natural calamity.
Comprehensive coverage is the best choice for you if you wish to pamper your car and give it maximum full coverage protection. Get a comprehensive car insurance quote now and save thousands on your premium.