Here’s How Investing in Comprehensive Insurance is Beneficial in the Long Run

Posted on: Aug 6, 2024 | 3 mins | Written by: HDFC ERGO Team

Here’s How Investing in Comprehensive Insurance is Beneficial in the Long Run

Driving a vehicle is a matter of great responsibility. You have to ensure the safety of the vehicle, yourself, the passengers in your vehicle, other vehicles on the road, and the pedestrians. However, sometimes due to unfortunate and less-than-favourable circumstances, you may face some mishaps on the road, maybe not even because of any fault of your own. You need to keep yourself prepared because of such unforeseen challenges by prudently investing in competent car insurance plan(s).

As per the Motor Vehicles mandate of the country, having third-party insurance is compulsory. Although it may save you from legal obligations, having a third-party plan is not enough, as it will not cover any loss or damage that happens to your vehicle. So, to ensure the safety and security of yourself and your vehicle, it is wise to invest in competent comprehensive car insurance.

What is comprehensive car insurance?

Comprehensive car insurance offers extensive coverage for the insured vehicle in the case of any accidental circumstance. It even takes the responsibility of third-party liability involved in the scenario. If the accident is fatal, then the nominee will be indemnified by the insurance company as per MACT rules.

Although the standard coverage span of a comprehensive plan is quite extensive, you can further extend it by adding befitting riders to the basic plan. There are several types of riders available including Roadside Assistance cover, NCB Protection cover, Zero Dep cover, Downtime Allowance cover, etc. However, not all insurance providers offer all sorts of riders.

You must analyse your needs well before purchasing a plan, make a thorough comparative study among several competent plans, select suitable riders, and then proceed to buy it.

What is covered in comprehensive car insurance?

As per the law of the country, having third-party insurance is mandatory for every vehicle owner. However, that is not the case with the comprehensive plan. It is dependent upon the voluntary choice of the individual vehicle owner. But it is advisable to always opt for comprehensive insurance, especially if your car is comparatively pricier and more luxurious.

Accidents may occur at any point to anybody. It is best to keep yourself prepared beforehand to combat such challenges well. Sometimes, the damage may be extensive and the repair costs prove to be so high that it may burn a hole in your pocket. Once such a thing happens, you cannot turn back. So, it is best to keep yourself prepared.

The list of inclusions may vary from one plan to another and the types of riders you have chosen. However, standard inclusions are:

1. Third-party liability cover:

If your vehicle causes any damage to the third party, your insurance will cover it.

2. Damages caused by natural disasters:

If your car gets damaged by natural disasters like earthquakes, floods, cyclones, tsunamis, etc. your insurer will cover it.

3. Personal accident cover:

In the case of any total/partial permanent/temporary disability of the concerned policyholder, it will be covered by your insurer up to a specific extent as per the chosen plan terms.

4. Riders:

You can further enhance the coverage of a standard comprehensive cover by adding suitable riders to it. Not all riders are equally applicable to every vehicle. You must choose wisely as unnecessary additions will cause unnecessary financial drainage.

Exclusions

The list of standard exclusions of a comprehensive plan includes:

1. Natural wear and tear:

Any damages caused due to regular usage and natural wear and tear are not covered by insurance.

2. Illegal driving habits:

Any damages caused due to illegal and unhealthy driving practices like intoxicated driving, rash driving, illegal overtaking, failing traffic rules, etc. will not be covered by your insurance provider.

3. War:

Damages caused due to war-like conditions like riots, nuclear attacks, etc. are usually not covered by insurance companies. However, you must clarify all these details well before making the final purchase.

Benefits of comprehensive cover

Some of the most significant benefits of comprehensive insurance include the following:

1. Own damage cover:

Unlike third-party insurance, comprehensive insurance allows own damage protection coverage in the case of an accident.

2. Convenience:

Having a comprehensive insurance is very convenient as it allows extensive coverage including third-party liability coverage. Moreover, having a comprehensive cover allows you to expand the coverage scope further by adding befitting riders to it according to your need, convenience and budget.

3. Network garages:

Having comprehensive insurance allows you to enjoy cashless claim settlement at network garages.

4. Easy claim settlement:

One of the essential benefits of comprehensive insurance is that the claim settlement procedure usually remains smooth, provided you follow all the rules and regulations of your insurance provider.

5. Disability/Death coverage:

Personal accident cover is usually a standard component of comprehensive insurance. In case you face any accident leading to total/partial permanent/temporary disability(ies) or death, your insurance provider will allow coverage for it as per your chosen plan terms.

6. Peace of mind:

Once you purchase comprehensive cover for one year or multiple years, you can ensure your peace of mind, as most of the liabilities will be handled by your chosen insurer. Any sudden and considerable expenses for your vehicle will mostly be handled by your insurance provider as per the terms of your chosen policy.

Conclusion

We have discussed and highlighted the importance of having comprehensive insurance for your beloved four-wheeler. Not only to meet the legal standards, it is essential to ensure the safety and security of your precious car as well as yourself. However, you must make an informed decision while purchasing comprehensive car insurance as the market is loaded with multiple plans. Consider your requirements and budget well and then proceed to purchase it after careful comparative study.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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