The Importance of Comprehensive Car Insurance for Vehicle Owners
2 min read
・Jun 13, 2024
In 2022 alone, there were more than 4.6 lakh road accident cases in India that claimed over 1.5 lakh lives and caused injuries to 4.4 lakh people. These numbers highlight a stark reality – when you’re in a road accident, you not only sustain injuries to yourself and damages to your car but also a third person.
This is why it is crucial to have comprehensive car insurance.
However, despite its importance, only 40% of car owners have opted for comprehensive plans. This move to save a few extra bucks can cost you more in the long run.
Read on as we find out more about comprehensive insurance benefits and explore why it is better than other car insurance variants.
What is Comprehensive Car Insurance?
Comprehensive car insurance offers complete protection to your vehicle. It offers coverage to your car as well as any damages caused by your car to a third party.
For example, suppose your car gets into an accident with another car. Now, standard third-party car insurance will only pay for the damages to the other party’s vehicle. But what about the damages caused to your car and yourself? In those cases, comprehensive insurance will cover your costs.
What Does Comprehensive Car Insurance Cover?
To better understand the comprehensive insurance benefits over third-party insurance, let’s compare them side-by-side:
| Parameter | Third-Party Car Insurance | Comprehensive Car Insurance |
| Financial Protection | Provides financial cover for damages inflicted on the third party’s vehicle. | Pays for damages inflicted on others as well as your own vehicle. |
| Added Benefits | No extra benefits can be added. | Riders, like zero depreciation, roadside assistance, engine protection, etc, can be added. |
| Peace of Mind | Users do not have complete peace of mind since they do not have protection from every aspect. | Users can enjoy complete peace of mind since the insurance provides 360-degree protection. |
| Resale Value | Without coverage for your car, it may not be repaired appropriately, and its price can depreciate, lowering its resale value. | With protection from all damages, the vehicle can be repaired quickly without breaking the bank, and zero dep add-on keeps the car’s value right, improving its resale value. |
| Cost Effective | It has a lower premium cost but does not provide extensive coverage, leading to a higher long-term cost. | It covers the vehicle from all potential damages, making it a cost-effective alternative in the long term. |
Key Takeaways
Since third-party car insurance is mandated by law, you have to purchase it no matter what. However, in the long run, it is better to shell out some extra money and purchase comprehensive coverage instead. From providing added coverage to increasing your resale value, comprehensive car insurance can be one of the best investments that you can make to minimise your risks. Additionally, platforms like PhonePe make your insurance purchase experience seamless and hassle-free.
Frequently Asked Questions
What is not covered in comprehensive car insurance policy?
Should I purchase comprehensive insurance if my car is really old?
Is comprehensive policy compulsory to drive a vehicle in India?
Which is better – Third-party or Comprehensive car insurance?
Can I buy a comprehensive policy for my car on PhonePe?
