The dictionary meaning of the comprehensive word is “dealing with all the elements of something”, but it’s actually not the case when you are purchasing a comprehensive insurance policy for your car. A comprehensive policy provides overall protection to your car, where the insurance segments are defined specifically related to any damage, personal accident cover, third party cover, theft, etc. However, the policy is not limited to such benefits, you can also buy add-ons and get extra benefits by adding a zero depreciation cover, medical exigency coverage, engine safety cover, etc, to your policy.
The policy may not cover any damage made by animals, natural disaster, civil riots which may damage your car or any other occurrence of the incidental event which may not be a part of your policy.
“ A comprehensive motor insurance policy typically includes own damage, third party damage and compulsory personal accident cover of Rs 2 lakh for the owner driver. However, there are some optional components also for which one has to pay. These are generally personal accident cover for unnamed passenger (starting from 10,000 – 200,000), legal liability to paid driver, electrical accessories, non-electrical accessories and externally fitted bi-fuel kit etc,” says Neeraj Gupta, Head of Motor Insurance, Policybazaar.com.
You must check with your insurer about the detailed coverage list included in your comprehensive policy, and also read the terms and conditions mentioned in the policy.
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When should you take a comprehensive cover?
Many of the insurance companies insist on taking a comprehensive coverage for your vehicle. Therefore, if you have taken a loan against your car and you are still having a longer loan repayment tenure, then you must buy a comprehensive insurance. And if your car is a bit expensive one and you don’t want to get it repaired here and there, then also you may go with a comprehensive insurance policy with add-ons for having extra coverage.
“One can also buy various add-ons to enhance the protection factor in the motor insurance policy. A few must have add-ons are zero depreciation, engine protector, NCB protector, roadside assistance etc,” says Gupta.
When should you not take the comprehensive cover?
When your vehicle becomes quite old and the valuation of your vehicle has gone down, then in such a case one should only opt for third party insurance. It is cheaper to pay the repair bill for any damage incurred in your vehicle (which may or may not happen) rather than paying a heavy premium amount for a certain cover, which can actually cost you high for having no damage at all.
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Third party insurance covers the injuries that have caused to the third person. Some companies also provide damage cover by adding the slightly extra amount to your premium. However, under third party insurance, any damage to your own vehicle is not covered. Therefore, go for motor insurance as per your requirement.