Comprehensive Car Insurance Cover: All You Need to Know!
If you own a car, you know that having motor insurance is mandatory by law. Should you fail to adhere to it and get caught, there are consequences to bear which usually come in the form of fine or imprisonment.
By taking out a car insurance policy for your prized possession, you are not only keeping the law, but you are also financially protecting yourself should anything involving your vehicle go wrong.
Now, there are two ways by which you can purchase car insurance — you can get a third party liability cover, which is a basic cover, or a comprehensive car insurance policy, which protects you from a wide range of risks. In this article we will focus on the latter and understand the benefits that are available to you under this cover.
Meaning of Comprehensive Car Insurance
A comprehensive car insurance policy covers the policyholder against loss/damage to their vehicle as well as any third-party liabilities that may arise. Although having this kind of policy is not mandatory by law, many car owners prefer this as it provides enhanced coverage.
What Is Covered Under Comprehensive Car Insurance
You will typically find the following risks covered under a comprehensive car insurance policy:
- Damage To Own Car
A comprehensive car insurance has you covered in the event your car gets damaged in an accident or due to natural or man-made disaster. This means that if your car sustains damages in an accident, you are covered, regardless of who is the party at fault. Additionally, you are secured should unfortunate events like floods, earthquake, riots, vandalism, etc. result in damage to your car.
We often hear of incidents involving theft of vehicles. While nothing compares to the emotion one feels at that moment, it is some comfort to know that comprehensive car insurance extends coverage to car theft. Before a claim can be filed, the policyholder needs to first head to the police station to file an FIR. This is one of the mandatory documents that must be submitted for making a theft claim.
There are various causes for car fires. It could be due to engine overheating, short circuit, vandals lighting it up, etc. Damage caused by fire is covered under comprehensive car insurance, provided the policyholder has not deliberately done it. To ensure there is no wrong doing, the company will appoint a surveyor to find out the reason for the fire.
- Third-Party Liability
What’s must to drive on the road is third party liability insurance. Without this cover, not only can you get into big trouble if your vehicle is responsible for an accident, but you are also breaking the law. A comprehensive car insurance policy includes coverage for third-party liabilities. In the event of any damage or loss to a third party, this policy will shoulder the legal liabilities on your behalf.
What’s Not Covered Under Comprehensive Car Insurance
The exclusions that you will find under a comprehensive insurance policy are as follows:
- Damage caused while driving under the influence of alcohol or drugs
- Electrical or mechanical breakdown
- Wilful damages
- Loss due to wear and tear
- Driving without a valid license / underage driving
- Damages caused when policy has expired and was not renewed.
Note — The list of exclusions will vary across insurers. Please refer to your respective insurer’s policy document for the complete list of exclusions.
Add-On Covers To Enhance Protection
By including add-ons to your base car insurance policy, you can enhance the protection available to you. The following are some of the add-ons available if you have a comprehensive car insurance policy:
Zero Depreciation Cover — Wear and tear on account of age applies to all objects and a car is no exception. Depreciation reduces the value of your vehicle and when a claim is filed, the insurance company will make the payout only after subtracting the amount of depreciation. However, if you avail the Zero Depreciation Cover, there is no subtraction for depreciation which in turn means you will receive high payout.
Engine Protection Cover — Damage to the engine is not covered under car insurance, and it is usually listed under Consequential damage. However, with the Engine Protection cover, the insurance company will bear the cost of repairs should the car engine or its part get damaged.
Tyre Protect Cover — Tyres see more wear and tear when compared with the other parts of a vehicle. And repairing damaged tires is not cheap. Given that this is excluded under comprehensive car insurance policy, having a Tyre Protect Cover can be quite beneficial. Along with taking care of the cost of repairs, it usually covers the labour charges associated with the repair or replacement.
Roadside Assistance Cover — This add-on will come to your rescue should your four-wheeler break down in the middle of the road. Here, the insurance company may either arrange for a mechanic to come to the site of the breakdown to make repairs or arrange for the vehicle to be towed to a nearby network garage. Some insurance providers offer this cover as part of the comprehensive car insurance policy, while others may offer it as an add-on cover, which can be opted by the policyholder.
The list of add-ons available go beyond the options listed above. Some of the other popular add-ons include Return to Invoice Cover, Consumable Cover, Key Replacement Cover, Passenger Cover, etc. You can view the add-ons available for comprehensive car insurance policies on the PhonePe App.
How Can I Buy A Comprehensive Car Insurance Policy On PhonePe?
The process of purchasing a comprehensive car insurance policy on PhonePe is easy.
Step 1 — Open the PhonePe App
Step 2 — Tap ‘Car’ under Insurance and enter details of your car
Step 3 — Choose ‘Comprehensive’ under Plan and select the plan of your choice
Step 4 — Enter the required details and proceed to buy the Plan
Having a car insurance policy is mandatory if you want to drive your four-wheeler on Indian roads. A comprehensive car insurance policy is the best option if you are looking for complete protection for your vehicle. Not only are you following the law, you’re protected for loss/damage to your vehicle and from third party liabilities that may arise because of your vehicle. Including add-ons to your policy will enhance your protection from a wide range of risks. We recommend comparing the benefits of different motor insurance policies on the PhonePe App to find the best-suited cover for your car insurance needs.