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
| Comprehensive Insurance | Collision Insurance |
|---|---|
|
It covers damages other than collision . |
It just covers collisions. |
|
Covers damages from natural disasters, theft, fire, Riots, falling objects, etc. |
Cover damages from accidents, rollovers, collisions with another car or object, etc. |
|
It covers additional cases of damage. |
It just covers damage to the owner’s vehicle from from normal accident. |
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:
| Pros | Cons |
|---|---|
|
Offers extensive coverage for your car |
More expensive than third-party insurance. |
|
It includes repairs, theft, fire, and natural disasters. |
Does not include damages resulting from a collision and potholes |
|
Provides peace of mind and financial protection. |
Not effective for old cars with high mileage, as it could be waste of money. |
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
Comprehensive car insurance provides valuable protection for events that may injure your car and are unrelated to collision. You will understand comprehensively the coverage, costs, and benefits of comprehensive insurance so that you can make informed decisions about the proper kind of insurance policy for your vehicle.
It is always advisable to review options and then seek professional advice from insurance professionals to determine the best coverage for your individual needs. So, in comprehensive vs third-party car insurance, the former takes the lead.
What is Comprehensive Car Insurance? - Related FAQs
Comprehensive insurance covers all kinds of damages happening to your vehicle due to accidents, theft, and so on. This kind of insurance covers third-party damages or injury only in case there has been an accident.
No, you are not required to have comprehensive car insurance for being a car owner, but it is beneficial for you to have it if you want to save on your pocket for repairs in case of accidents.
Comprehensive car insurance coverage is also referred to as full comprehensive coverage. If you damage your car or someone else's car or injure someone in an accident, comprehensive car insurance protects you against it. It also covers natural calamities.
For a new car, comprehensive insurance is better since it covers more at a lower cost. For cars over 5 years old, zero depreciation insurance is ideal as it covers the full value without considering wear and tear.
Car insurance tends to be cheapest between the ages of 34 and 75. Rates usually drop significantly from age 19 to 34, then stay steady or decrease slightly. After 75, premiums typically increase again.