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What Does Comprehensive Car Insurance Cover

by Byrne Anderson
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When it comes to buying a car insurance policy, there are several factors that you must consider. And, one of the critical factors to consider is the type of policy you must buy for your car. People, often tend to get confused between a comprehensive insurance policy and a third-party liability cover and use the terms interchangeably. However, these policies are completely different and have different features, benefits and coverage.

Let’s understand more about comprehensive car insurance and the coverage it offers.

What is a comprehensive car insurance policy?

A comprehensive car insurance plan, as the name suggests, offers complete protection against damages to the car that may occur due to accident or any other road mishap. The plan is called comprehensive insurance because it covers third-party liability, damages to your vehicle, theft of your vehicle and personal accident.

You can widen the scope of your comprehensive car insurance coverage by purchasing additional covers or riders. Some of the popular types of add-on covers are engine protection cover, zero depreciation cover, roadside assistance, accessories cover, medical cover, etc.

As per the Indian Motor Vehicle Act, 1988, it is mandatory for all car owners to have a third-liability cover. But, you should purchase a comprehensive car insurance policy to get complete protection against damages and get peace of mind.

What are the benefits of buying a comprehensive car insurance policy?

A comprehensive car insurance policy is vital to get finical protection against any unforeseen incidents. Some of the other benefits of buying a comprehensive policy include:

  • A comprehensive car insurance policy provides you with the highest level of security for your car.
  • In the event of an accident, if you are found to be at fault, a comprehensive allows you to get compensation for the damages you may incur including repair cost, medical expenses for the injuries you may suffer.
  • Another significant benefit of buying a comprehensive car insurance policy is that it also provides coverage against the lawsuit that the other party may file against you.
  • With a comprehensive policy, you can get the financial aid in case your car suffers damages that are beyond repair and is written off.
  • Unlike the third-party liability cover, which offers compensation only for the damages to the third party, the comprehensive policy also pays for the damages to your car.

What does the comprehensive car insurance policy cover?

To avoid any last-minute hassles during a claim, you should read the policy documents carefully at the time of buying the policy and know the inclusions and the exclusions. With a comprehensive policy, you can be assured of getting complete protection against all kinds of damages.

Typically, the comprehensive policy covers:

  • Damages caused to your vehicle due or natural calamities like rain, flood, snow, earthquake, etc
  • Damages caused to the third-party car and property
  • Injuries caused to the third party, and self
  • The comprehensive policy also protects against vandalism and other human-made disasters like riots and strikes.
  • Losses incurred due to the theft of the car.
  • Damages caused to the car due to a falling tree.

What does comprehensive car insurance not cover?

Just as it is vital to know the inclusions of the car insurance policy, you must know about the exclusions. Generally, a comprehensive policy does not cover:

  • Damages occurred due to collision
  • Accidents caused due to mechanical or electrical breakdown of engine
  • Damaged caused to the vehicle if the driver is found to be driving without driving a valid license
  • Damages incurred due to driving under the influence of alcohol, drugs or any other intoxicating substance
  • Damages to the car due to acts of war or nuclear risk
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