All car owners need to mandatorily purchase a motor insurance cover. But apart from being mandatory by law, there are few things you must note about it, for instance it needs to be renewed timely so that you get continuous coverage.
Moreover, there is a choice of insurance cover between third-party and comprehensive plans. You can purchase third party car insurance online that includes protection from third-party liabilities. These liabilities can arise due to accidents that either cause injury to a person or damage to property. While it is limited to these liabilities, a comprehensive cover safeguards the damages to your vehicle too. Not only own-damages cover, but it includes third-party cover as well as personal accident cover. Let us look at how comprehensive plans rank over third-party policies.
Third-party cover
The Motor Vehicles Act of 1988 mandatorily requires all vehicle owners to have a third-party insurance policy. Keeping this in mind, insurance companies extend coverage the own-damage while including the mandatory requirement of third-party cover. Thus, buying a comprehensive plan gets you benefits of both, third-party damages as well as damages to your own vehicle.
Personal accident coverage
Apart from having third-party policy, a personal accident cover is mandatory by law. When you buy car insurance online, you have the option to select the amount of personal accident cover. This cover is included in your comprehensive insurance policy and is useful to pay for medical expenses caused due to injuries to the driver. The law recently increased the amount of this cover to ₹15 lakhs which can be adequate for treatment of injuries.
Accidents to your car
Car accidents cannot be avoided despite being one of the safest drivers. Accidents occur not only due to negligent driving, but also due to the fault of other drivers on the roads. While it is true, a comprehensive car insurance policy can help you safeguard you as well as your car against such accidents that might not always be as a result of your fault. The insurance company will pay for the cost of repairs subject to your policy terms saving you the financial hassle of repairs.
Damage to due to fire
Fire is an unfortunate event that rarely occurs, but cannot be completely ignored. A comprehensive insurance cover protects your car from damages due to self-ignition, explosions, lightning, etc. When you purchase a comprehensive plan, it pays the insured declared value or IDV in the event a fire damages your car beyond repair.
Car theft
With the increasing number of vehicles, it is getting difficult to always find a safe parking spot for your car in a garage. As a result, theft is prevalent for the vehicles that are parked without proper care. A comprehensive plan includes coverage from theft thereby securing you from a financial loss.
Additional coverage
Lastly, a comprehensive policy is preferred over a third-party insurance cover for the scalability it provides. You have the choice of add-ons to select that make it convenient for every type of buyer to insure according to your needs. While there are different add-ons that can be opted, using a car insurance premium calculator can help you decide the benefits vis a vis its cost. Thus, selecting a policy becomes convenient.
Remember these above tips that make a comprehensive car insurance a better policy over third-party cover. The benefits of a comprehensive plan are far greater than the premium for it. Third-party plans should only be opted when you are financially strained and need to comply with the law.
