Know the reasons to opt for comprehensive car insurance


25 Nov 2022

Read about Reasons to opt for comprehensive car insurance. Check out Kotak General Insurance's car insurance online for more information.

While rules mandate you to have only third-party insurance, you should consider opting for comprehensive car insurance because of its countless benefits. Keep reading to know more.

As per The Indian Motor Vehicles Act 1988, it’s mandatory for all vehicles to have third-party insurance before they are allowed to ply on Indian roads.

But is a third-party cover enough?

While third-party insurance can cover the damages caused by the insured vehicle to a third-party life or property, it doesn’t cover the damages caused to the insured vehicle.

And looking at how expensive cars are, it is a good idea to own comprehensive vehicle insurance that can provide more wholesome insurance protection.

What is a comprehensive car insurance?

Comprehensive car insurance protects against two major kinds of damages typically caused in an accident own-damage and third-party damage. While you already know the third-party damage, own-damage is any damage caused to the insured vehicle. It also includes a mandatory personal accident policy that covers the car owner. However, this cover can be opted out of if you already own a personal accident policy of 15 lakhs or more.

So why is it a good idea to buy a comprehensive cover instead of just third-party insurance? Let’s find out.

5 Reasons to choose comprehensive car insurance

1. Complete insurance coverage

Comprehensive car insurance provides insurance coverage against both third-party liabilities and own damages caused to the insured vehicle. This ensures complete coverage for both parties involved in the accident.

2. Personal accident cover

A personal accident cover can provide compensation for death or permanent disability to the owner-cum-driver of the insured vehicle involved in an accident.

As per the IRDAI rule, vehicle owners must purchase a personal accident cover. However, you don’t need to buy a personal accident cover if you already own a personal accident policy individually or if it’s clubbed with another comprehensive insurance policy that you may own.

3. Coverage for various types of damages

Your car can suffer damages for various reasons, even if it is not involved in an accident. This may include natural calamities like floods and landslides or problems like theft, burglaries, terrorist attacks or other malicious acts.

All these acts can result in huge financial losses to the car owner. However, comprehensive car insurance can significantly cover these losses.

4. Useful add-on options

You can customise your comprehensive insurance coverage by choosing optional add-ons. These add-ons can significantly enhance the scope of your car insurance coverage for an additional premium. Here are some smart add-ons you can include in your base comprehensive four-wheeler insurance plan.

• Engine Protect

• Return to Invoice Protect

• Key Replacement

• 24 x 7 Roadside Assistance

• Tyre Cover

• Loss of Personal Belonging

5. Discounts

You can reduce your comprehensive car insurance premium by availing of various discounts discussed below.

• No claim bonus (NCB)

NCB is the discount you get on your insurance premium for every claim-free year. You can get a maximum of 50% NCB if you manage a claim-free record for five consecutive years. You can also transfer the unclaimed NCB to your new car if you sell your car that has accrued a no-claim bonus.

• Voluntary deductibles

The deductible is the portion of the claim amount policyholders need to pay from their own pocket while raising a claim. You can get a discount on your four-wheeler insurance premium by opting for a higher voluntary deductible amount.

• Installation of anti-theft device

Installing anti-theft devices in your car can reduce the chances of car theft. Therefore, you can get a discount on your comprehensive insurance premium by installing these devices. However, such devices should be approved by the Automobile Research Association of India.

• AAI membership

You can get an additional discount on your comprehensive four-wheeler insurance if you’re an active member of an automobile club recognised by the Automobile Association of India.

While third-party insurance can cost you less premium, comprehensive car insurance can help you save big bucks on repair and replacement if your car gets involved in an accident.

Therefore, it makes sense to purchase comprehensive vehicle insurance, especially if your car is new or you wish to maintain it well. At Kotak General Insurance our comprehensive car insurance plan like Kotak Car Secure allows you to drive without worries and cover long distances as your car is completely secured.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.