Comprehensive auto insurance offers protection against a wide variety of threats, such as damage to the covered vehicle due to natural disasters, theft, accidents, and third-party liability. Since it offers a comprehensive range of coverage and strong financial protection in the event of any kind of misfortune, it is a common option among those who own cars.
A few advantages of a comprehensive auto insurance plan are not as well recognized. In this post, we will examine some of the details of your comprehensive auto insurance policy that you may not have been aware of before.
Coverage for Individual Accidents
Not many automobile owners are aware that the comprehensive auto insurance plan they have purchased also provides coverage for individual accidents for the driver of the vehicle. This protection offers financial help if the driver sustains injuries or dies in an automobile accident. Coverage amounts may vary anywhere from 1 lakh to 15 lakh rupees, with the exact sum determined by the insurance provider as well as the policyholder’s monthly premium payment.
No Claim Bonus
A policyholder is eligible for a discount known as the “No Claim Bonus” (NCB), granted by insurance firms to customers who do not file any claims within the period covered by the policy. Depending on the total number of claim-free years, the reduction might be anywhere from 20% to 50% of the total price of the premium. When switching insurance providers, many vehicle owners are unaware they may take their no-claims bonus to their new carrier without starting over with a new NCB. The insurance premiums of those who own car insurance may be reduced by a substantial amount thanks to the presence of this function.
Comprehensive auto insurance policies often come with various add-on coverage options that, when purchased together, may significantly boost the coverage provided by the policy. Covers such as zero depreciation cover, engine protection cover, roadside assistance cover, and consumables cover are among the most popular optional additions to insurance policies. The additional protection afforded by these add-ons, which may be obtained by paying a higher premium, is provided to the vehicle that has been insured.
Coverage for Third-Party Claims
All comprehensive auto insurance policies must include coverage for third party insurance claims since this kind of protection is required by state law. This coverage offers monetary protection if the covered vehicle causes harm to the property or person of a third party. The coverage amount might be anywhere from Rs. 7.5 lakhs to Rs. 15 lakhs, which can vary based on the insurance firm and the premium the policyholder pays.
Most insurance providers offer their customers a cashless claims service. This enables policyholders to have their vehicles fixed at a network garage without paying any cash out of pocket. The insurance company and the garage work together to reach an agreement over the cost of the repairs. This function not only relieves the policyholder of the burden of obtaining funds at the time of repair, but it also assures that the repair cost is paid per the terms and conditions of the insurance policy.
Insured Declared Value
The Insured Declared Value (IDV) is the maximum amount an insurance company will pay out if the covered automobile is stolen or completely lost. The vehicle’s actual market value is used to determine the IDV; the purchase price is not considered in this calculation. This is something that many people who own cars are unaware of. As a result of depreciation, the IDV of the vehicle falls with the passage of each year.
Engine Protection Cover
Coverage for damages to the insured vehicle’s engine that may occur due to waterlogging, lubricant leaking, or hydrostatic lock is provided by an add-on policy known as engine protection insurance. Many people who own cars are ignorant that a typical comprehensive vehicle insurance plan does not cover engine damage and that the policyholder must seek extra engine protection cover.
Depreciation Coverage is an additional add-on insurance that policyholders can purchase to lessen the effect of depreciation on the value of their vehicle. The depreciation value of the automobile’s components, which are not covered by a regular comprehensive third party insurance plan, is protected by this policy, which may be purchased separately. This protection benefits automobiles older than three years and has a greater depreciation rate since it protects against total loss.
Comprehensive automobile insurance policies provide its subscribers with various features and advantages, ranging from protection against personal accidents to additional coverage options like engine protection and depreciation cover. To get the most out of their comprehensive auto insurance plan, automobile owners should ensure they are familiar with the policy’s features and advantages and choose the coverage tailored to their specific requirements.