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 various causes, such as natural disasters, vandalism, theft, or even dropping objects.

Comprehensive Car Insurance Explained

Comprehensive car 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 Insurance Cover?

Comprehensive 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

Comprehensive car insurance is different from collision insurance and third-party insurance due to these features. 

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

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

3. Legal Requirement: Not a mandatory requirement.

4. 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.

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

6. 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

Factors to Consider while Choosing a Comprehensive Car Insurance

You should consider the following factors while choosing a comprehensive car 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 Insurance

The price for full insurance varies depending on the value of your vehicle, your location, your driving record, and the coverage amounts. On average, comprehensive insurance might run you a few thousand rupees per year, with an average being around Rs.2,094. However, it will increase with the circumstances.

Advantages and Disadvantages of Comprehensive Insurance

The following are some of the advantages and disadvantages of comprehensive insurance:

Suppose a tornado 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 dent your pocket.

Conclusion