Risks covered by a comprehensive car insurance

Today, purchasing a car is a dream of every young individual. It is not just a mere luxury but has become a necessity. Whether you are traveling to your workplace or dropping your kids at their school, it becomes a lot easier to commute if you own a car. However, the decision of buying a car is one of the decisions that you cannot take overnight (unless you have lots of money). You need to check your financial status and if you can manage funds during the financial crisis, in case your car is damaged or gets stolen. Once you have decided to purchase a car it is also crucial to make sure that you insure it. As you might be spending your hard-earned money on it and if you don’t want to get into any financial or legal trouble in case of any mishap.

Now, the next thing is which insurance do you need to purchase and why? Whether to stick to the mandated third-party insurance or go for comprehensive car insurance? As you might be aware third-party car insurance is mandatory by the law, also, you can opt for comprehensive car insurance and provide your vehicle an all-around protection. An ideal decision is to purchase comprehensive insurance, and, once you have taken this decision, it is also important to understand the risks covered under this insurance. It is important to be aware of these risks so that while raising a claim your claim doesn’t get rejected.

Let’s first understand what comprehensive car insurance is.

Comprehensive car insurance is not mandatory but is recommended by the experts as it provides wider coverage to your vehicle. It provides overall protection by offering coverage for both third-party as well as the insured car’s own damages. Various unanticipated events like car accidents, crashes, natural disasters, theft, etc. are accountable for these damages. Comprehensive car insurance can be further enhanced and can provide a 360°protection to your car by including riders or additional covers like zero depreciation cover, NCB protect cover, roadside assistance cover, etc. Moreover, buying comprehensive car insurance can reduce your financial liabilities as it compensates for all your damages.

Risks covered under comprehensive car insurance

Numerous unexpected perils are covered under the umbrella of comprehensive four-wheeler insurance:

Third-Party Risks: The insurance covers any third-party loss such as third-party death, physical injury, or property damage.

Natural Disasters: Any damage to the insured four-wheeler caused by natural calamities such as thunderstorms, earthquakes, cyclones, hurricanes, and so on is also covered.

Man-made Risks: Manmade risks are covered, including losses to the insured vehicle caused by strikes, riots, and terrorist attacks.

External Risks: Any external risk, such as damages from car accidents, windshield damage, or collisions, is also covered by insurance.

In-Transit: If your four-wheeler receives damage while commuting on roads, rails, airways, or waterways, the insurance will cover such risks.

Theft: Total or partial loss incurred by the insured vehicle as a consequence of burglary or housebreaking is also covered.

Personal Accident: Comprehensive car insurance also covers the owner/ driver’s or injuries/ death. Compensation can be up to Rs. 15 lakh in situations of death.

Fire-Related Risks: Comprehensive coverage includes risks incurred by the insured vehicle as a result of fire, self-ignition, or explosion.

Risks not covered under comprehensive car insurance

You don’t get stuck during making a claim or your claim gets rejected due to some unknown reason, therefore, it is vital to know the risks that are not covered under comprehensive car insurance. Damages or losses that are not covered by this insurance are listed below:

Drunk Driving: Driving while intoxicated is not covered by comprehensive insurance coverage.

Driving Without a License: Damages to the insured vehicle caused by the driver driving without a valid driver’s license are also not covered.

Outside Geographical Location: If the insured vehicle is involved in an unforeseeable accident outside of the defined geographical area, the losses caused will not be covered.

Other uses: Comprehensive four-wheeler insurance does not cover losses sustained by the insured vehicle when it was being utilized for business reasons.

Wear and Tear: Claims for regular wear and tear on the insured vehicle are not recognized.

Depreciation: The coverage does not cover depreciation incurred by the insured vehicle over time.

Breakdown: Electrical or mechanical failure caused to the insured vehicle is also not covered by the insurance.

To obtain coverage for risks covered by comprehensive car insurance, you can make a claim by following the steps outlined below:

• Notifying the insurance company of the damages sustained.
• Filing an FIR report in the event of third-party property damage or an accident.
• Submit required documents such as an FIR copy, your identification proof, residence proof, registration certificate, etc.
• A surveyor will be hired to determine the extent of the damage.
• The vehicle will then be sent to a local mechanic for repairs.
• If the car is being fixed at a network garage, cashless claims service will be offered; otherwise, the repair expenses must be reimbursed.

As we know, accidents can happen at any time and are unavoidable. However, you can prepare yourself by purchasing a comprehensive car insurance policy to ensure you don’t have to pay out of pocket in case of any financial and legal problems.