What is Comprehensive Car Insurance?

Comprehensive car insurance is coverage related to damages done to your car other than a collision. This type of insurance covers your car if it suffers damage from causes, such as natural disasters, vandalism, theft, or even dropping objects.

Comprehensive Motor Insurance Explained

Comprehensive car or motor insurance is one of the three types of auto insurance policies, along with collision and liability insurance. Liability is mandatory in most states, while comprehensive and collision is optional if you are a straight-out owner of your vehicle.

The main points of comprehensive car insurance are -

• This type of insurance pays for repair jobs to your automobile that result from anything other than a collision.

• You might need it if you finance your automobile purchase.

• It protects against damages caused by animals, falling trees, storm damage, theft, and vandalism.

• It reduces your premiums when you increase your deductibles.

What Does Comprehensive Car Insurance Cover?

Comprehensive motor insurance covers the following damages:

• Contact with animals

• Natural disasters

• Fire

• Vandalism

• Theft of the vehicle

• Broken windshields

• Fallen objects

It is meant to cover accidents that are not based on collision but intend to protect your vehicle from other accidents.

Features of Comprehensive Car Insurance

Here are some points that describe how comprehensive motor insurance differs from collision and third-party insurance -

• Coverage: Protects third-party liabilities, including repairs, theft, fire, and more.

• Add-On Covers: Option to include additional facilities such as zero depreciation cover, roadside assistance, and others.

• Legal Requirement: Comprehensive insurance is not mandatory.

• Premium Calculation: The premium is based on factors such as the Insured Declared Value (IDV), the make and model of the vehicle, and other considerations.

• Premium Cost: Varies depending on the level of coverage selected.

• Policy Exclusions: This does not cover damages resulting from accidents caused by driving under the influence of alcohol, negligent driving, or driving without a license.

Comprehensive Insurance vs. Collision Insurance

This table will help you understand the difference between comprehensive motor insurance and collision insurance -

Factors to Consider while Choosing a Comprehensive Car Insurance

You should consider the following factors while choosing a comprehensive motor insurance -

• Value of Your Car

If your car is valuable, comprehensive coverage could be a good investment.

• Driving Habits

Frequent drivers or those who park in high-risk areas benefit significantly from comprehensive insurance.

• Budget

If you’re on a tight budget, third-party insurance might be more affordable, but you should be ready to cover repair costs yourself in case of unexpected events.

Cost of Comprehensive Motor Insurance

On average, comprehensive insurance might cost you a few thousand rupees per year, with an average being around Rs.2,094. However, the exact amount will depend on the following factors -

• Value and type of your vehicle

• The condition of your vehicle; fist-hand or second-hand

• Location of registration

• Your age and gender

• Your driving record

• Policy chosen

Advantages and Disadvantages of Comprehensive Car Insurance

The following are some of the advantages and disadvantages of comprehensive motor insurance -

Suppose a natural calamity destroys your car. Comprehensive insurance will cover the damage after deducting the deductible. This is how comprehensive insurance helps you budget for unforeseen events that could otherwise put a dent in your pocket.

Conclusion

Comprehensive car insurance is a good option for you if you live in an area where there are high chances of collision with animals, damage by natural calamities, or theft and burglary. This way you will be able to cover these damages under the policy and not spend tons of money during such a mishap.

You should read about the various car insurance companies in India to compare which policy and coverage will be the best for you. You can also consider Moneyview motor insurance for insuring your vehicle. To know more, visit our website or download the Moneyview app.