After purchasing your dream car, you should not miss out on insuring it as not doing so can land you in legal and financial trouble.
Purchasing third party insurance is mandatory as per the law, however, you can also choose to insure the car with comprehensive car insurance which provides coverage both for third party as well as your own car.
While buying comprehensive car insurance is an ideal choice, it is imperative that you understand the risks covered under this type of insurance to ensure your claim does not get rejected in the future. Read on to know all about risks covered under comprehensive car insurance.
What is covered under comprehensive car insurance?
Comprehensive car insurance typically offers you coverage against damages caused to your car due to man made, natural calamity or theft ; it also covers against third party person or property damages, death or disability.
This type of insurance reduces your financial liability as the insurance compensates you by providing the required coverage. You get coverage against theft, fire, vandalism, riot, etc.
What risks are covered under comprehensive car insurance?
Comprehensive car insurance policy covers a wide range of risks including damages caused to property, third person death, damages caused to third party car, etc. It also offers protection against theft. In case of total loss of vehicle or its theft, the amount up to the insured declared value is covered under this type of insurance.
A). Physical Risks
Comprehensive car insurance provides coverage against physical risks such as damages caused to the car i.e. its repair and replacement costs in addition to injury caused to you or the third party. It also covers disability or death caused to third party. The personal accident cover can compensate the family of the policyholder in case of death or disability caused to the owner/driver.
B). Financial Risk:
A comprehensive car insurance policy covers you against financial risk i.e. the expenses you have to borne in case of damages, death or disability caused to third party person or property. It also compensates for the damages caused to your car i.e. offering you the repair and replacement cost of the damaged car parts. You can also choose to purchase car insurance add ons such as engine protection, zero depreciation.
C). Liability Risk:
It covers your legal liability arising out of damages caused to third party or in case you have caused an accident
Additional coverage offered under car insurance
Coverage under comprehensive car insurance is provided in case of damages caused due to collision of your car
B). Towing & Labor Costs:
Few car insurance companies also offer coverage for the towing and labor costs in case damages are caused in the middle of the road and it has to be towed to the nearby garage for repair
What is not covered under comprehensive car insurance?
A comprehensive car insurance policy does not provide you coverage under the below circumstances:
- Damages caused due to driving under the influence of alcohol
- Damages caused due to driving without valid driving license
- Mechanical or electrical breakdown of the car
- Damages incurred during war
- Vehicle being used for commercial purposes
- Any damages that take place outside the geographical location
- Damages caused due to racing activity
To get coverage against risks covered under comprehensive car insurance, you need to do file a claim by following the below steps:
- Informing the insurance company about the damages incurred
- Filing an FIR report in case of damages caused to third person, property or in case of an accident
- Submit required documents such as FIR copy, identity proof, address proof, registration certificate, etc.
- Surveyor will be appointed to assess the extent of damages caused
- The vehicle will then be sent to the nearby garage for repair work
- In case if the vehicle is being repaired at network garage, cashless claims service will be provided and if not the repair bills will have to be reimbursed
Accidents are unfortunate in nature and can happen any time. The best thing you can do is stay prepared by availing comprehensive car policy to ensure you don’t have to spend out of your pocket in case of rising financial and legal liabilities.