It is essential to have a car insurance policy to protect against expenses that may arise due to damages, losses or other unavoidable incidents. The third party car insurance the policy, which is mandatory to have financial coverage offers for third party liabilities only. This is where a comprehensive auto insurance policy comes in.
A comprehensive auto insurance policy provides extensive coverage, protecting individuals and their vehicles against their own damage and liability to third parties in the event of an accident. Even though this policy is not compulsory, there are several reasons why car owners should opt for it.
Reasons to Buy a Comprehensive Car Insurance Policy
Here are some of the various reasons why car owners should purchase a comprehensive car insurance policy in India:
1. Get your own damage coverage
In addition to the mandatory liability coverage, this policy covers expenses for damage to the insured vehicle due to accident, fire, theft, natural disasters, etc.
2. Get personal accident coverage
A complete solution car insurance The policyholder benefits from compulsory cover against personal accidents. This indemnity can be advantageous in the event of disability or death of the driver or owner of the insured car resulting from an accident.
3. Take out liability insurance
With this policy, individuals are covered against financial liability resulting from damage to third party property or vehicle and bodily injury.
4. Get a cashless benefit
With a comprehensive car insurance policy, individuals can enjoy a cashless facility for easy claims settlement. This facility allows an insured to have an insured vehicle repaired in an approved network garage without making any payment. Indeed, the insurance company takes care of the repair bill directly with the garage.
5. Take advantage of the No Claim Bonus (NCB)
Many insurers offer a no-claims premium (NCB) on a comprehensive car insurance policy. Typically, policyholders receive this premium for not raising any claims during the term of the policy. This bonus accumulates each year and individuals can use it to receive a discount when renewing the policy.
However, some reputable insurers allow individuals to get this bonus even after raising certain claims.
6. Take advantage of additional coverage options
Individuals who purchase a comprehensive auto insurance policy can purchase multiple additional coverages at a certain additional premium amount for enhanced policy coverage. Some of them include:
· Motor protection cover: This additional warranty allows individuals to repair their car engine at no additional cost. The add-on includes engine components like pistons, connecting rods, etc.
· Zero amortization coverage: In this add-on, the insurer concerned does not take depreciation into account, and the reimbursement of repair costs is made at the original rates.
· Tire protection cover: This coverage protects vehicle tires against damage or loss in non-accidental circumstances and in accidents.
· Back to invoice: This additional coverage allows individuals to obtain an IDV (Insured Declared Value) equal to the invoice price of the vehicle instead of the current market value in the event of a total loss.
· Breakdown warranty: This cover allows policyholders access to breakdown assistance or roadside assistance from the insurer if the insured vehicle breaks down in the middle of the journey.
· Consumable coverage: This additional coverage ensures that every consumable used to repair an insured vehicle is covered by the policy. Consumables include nuts, washers, bolts, coolant, engine oil, etc.
To purchase a comprehensive policy, interested car owners can visit the Bajaj Finance portal or download the Bajaj Finserv app, where they can find selected car insurance policies to choose from.
Things to Consider When Buying a Comprehensive Car Insurance Policy for an Old Vehicle
A comprehensive car insurance policy covers all types of cars – new and old. With the benefits of buying a comprehensive auto insurance policy now clear, there are a few things that individuals should specifically consider when purchasing this policy for an older vehicle.
Before purchasing a policy, individuals should consider the age of the vehicle and how long they plan to continue using it. For example, you own a car that is 11 years old and use it regularly and look forward to doing so for the next 4 years. In this scenario, purchasing a comprehensive auto insurance policy will be appropriate. This is because the market value of older cars is lower, so you can insure the vehicle for a lower premium.
However, individuals should note that most financial institutions do not offer comprehensive auto insurance policies for vehicles 15 years or older. So one should check with the concerned insurance provider about such a condition.
Thus, it is quite obvious that a complete auto insurance policy proves to be an ideal option for individuals who are looking for complete protection for their vehicles. Also, owners of vintage cars should keep the details mentioned above in mind.
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