Advantages of Purchasing a Comprehensive Car Insurance Policy
Posted on March 07,2023
Comprehensive car insurance is an all-encompassing motor insurance policy that provides the insured with financial protection from their own damages and any third-party liabilities. This type of policy covers any unexpected occurrences, such as accidents, fires, theft or natural disasters.
The comprehensive cover may offer more coverage than Third-Party cover at an affordable premium. This blog will help you understand comprehensive car insurance and how to make an informed decision when you purchase a policy.
A comprehensive car insurance policy is the most ideal way to protect your car. It is superior to basic Third-Party car insurance, which only covers damage or injury to the third-party or vehicle you may have collided with.
Third-party insurance fails to provide coverage for your own vehicle in the event of an accident. In contrast, comprehensive insurance offers a much more comprehensive range of services and provides a greater level of protection.
Benefits of Shriram Comprehensive Car Insurance
Coverage against damages
The primary goal of four-wheeler insurance is to provide security in the event of an accident-causing damage to property or injury to the insured. This can include protection from natural disasters and other occurrences, such as earthquakes, storms, floods, riots or theft.
When purchasing a four-wheeler insurance policy, it is important to look out for a network of automobile repair shops, where your damaged car can be repaired without out-of-pocket spending.
The car insurance provider will then settle all the bills with the repair shops in the network, although you may have to pay any additional charges as stated by the claims manager of the insurer.
You will not have to worry about filing a claim and following up with the car insurance company if you choose cashless motor insurance, as the company will take care of the expenses for you.
Furthermore, you will be responsible for the depreciation amount based on the India Motor Tariff's Compulsory Deductibles. This will make the repairing process of your car much simpler and less stressful.
Choosing a deductible can significantly reduce the cost of your motor insurance premium. A deductible is the portion of the total cost that you pay out-of-pocket when making a motor insurance claim. While it is true that selecting a deductible can be beneficial, make sure you select an amount you can comfortably afford. If you choose a deductible that is too high, it may negate the purpose of buying car insurance.
By not making a single Own Damage (OD) claim during your car insurance policy period, you can be eligible for a No Claim Bonus (NCB).
Knowing the NCB percentage can help you figure out how much you can save when it comes time to renew your four-wheeler insurance.
If you don't make any OD claims on your four-wheeler insurance policy for a year, you can get a No Claim Bonus (NCB) of 20%. This increases to 25%, 35%, 45% and a maximum of 50% if you don't make any claims in the following two, three, four and five consecutive years respectively.
The NCB benefit is linked to the policyholder, and not the car, so you can move it to another vehicle also. NCB (No Claim Bonus) is only applicable to those who renew their comprehensive four-wheeler insurance policies and not to those who have third-party motor insurance plans, regardless of whether there have been no claims made in the past years.
A four-wheeler insurance policy that can be tailored through riders is desirable. These riders or add-ons, provide more coverage than the basic plan and come at an additional cost. They provide extra value by giving extensive protection.
Read more: Take Add-ons to Add Extra Protection to Your Car
Shriram Comprehensive coverage provides car owners with protection from legal liability claims brought forth by a third-party in the event of an accident. Therefore, if the vehicle is involved in an accident resulting in injury or death to a third-party, the insurance policy will provide compensation to that third-party/beneficiary.
Own Damage Coverage:
Shriram Comprehensive Insurance plan offers sufficient protection for the insured vehicle against both natural calamities like storms, floods, lightning and earthquakes and man-made disasters such as theft and riots.
Personal Accident Coverage:
As previously mentioned, due to risky road conditions and reckless driving, vehicle accidents can quickly become disastrous, potentially destroying the car and in some cases, your life. A well-rounded vehicle insurance policy will offer ample reimbursement if you are injured or left incapacitated in a crash involving your car.
Shriram General Insurance’s Note
A comprehensive motor insurance policy offers a wide range of coverage compared to a state-mandated third-party liability policy. Furthermore, the security and assurance of this type of policy are invaluable, as it provides the utmost protection for your vehicle and shields you from financial hardships in case of an accident.
- What are the advantages of a comprehensive policy?
The advantage of having a comprehensive four-wheeler insurance policy is that it safeguards your vehicle from any unfortunate harm or loss caused by collisions, fires, etc. It protects you from unexpected car repair expenses in the event of an accident.
- Is it worth getting comprehensive car insurance?
Although comprehensive insurance is comparatively pricier than Third-Party (TP) insurance, the additional protection it provides in the event of an accident makes it well worth the cost.
- What will cover in comprehensive car insurance?
Comprehensive insurance provides coverage for repairs or replacements in the event of an accident, fire, natural disaster, theft, or other third-party liabilities.
- Comprehensive car insurance is an all-encompassing motor insurance policy that provides the insured with financial protection from their own damages and third-party liabilities.
- NCB (No ClaimF Bonus) is only applicable to those who renew their comprehensive four-wheeler insurance policies and not to those who have only Third-Party motor insurance plans
- When purchasing a four-wheeler insurance policy, it is important to look out for a network of automobile repair shops, where your damaged car can be repaired without out-of-pocket expenses.
- Third-Party insurance does not provide coverage for your own vehicle in the event of an accident.
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