Travelling in your personal car is adventurous. You know your machine and you can test its performance according to your preference. But that’s not all about it. You can also enjoy the journey when riding in your own car. Want to take a detour and visit a different place, fret-not! But when planning for your next adventure, have you taken adequate safety precautions both for you and your car?
The Motor Vehicles Act makes it mandatory to have an insurance policy for your car. There are two types of policies that you can purchase – third-party and comprehensive. A third-party policy ensures safeguard against liabilities due to third person or property. Thus, it has limited coverage. On the other hand, comprehensive policies include the damages to your car as well as financial cover for injuries to you.
Let us look at some of the reasons to prefer a compressive car insurance over liability only plans –
Coverage against natural calamities: Natural calamities not only cause disruption of human life, but also end up destroying property which includes damage to your car. Imagine you are travelling up north in the country and are trapped in a snowfall of Kashmir. Now a comprehensive policy will come handy to cover for the cost of repairs, if any, required. Not only snowfall, but other natural perils like thunderstorms, floods, hurricanes, etc are also part of a comprehensive insurance coverage.
Protection from human perils: Other than unpredictability of nature, man-made perils are other factors that can cause a damage during long journeys. Often road trips require you to park in public spaces where there is a fear of theft and burglary. Apart from that, other malicious acts and terrorist activities are also covered by a comprehensive insurance plan.
Coverage for third-party liabilities: When you buy a comprehensive policy, you need not separately purchase a third-party cover. A third-party coverage forms part of the comprehensive plan wherein it pays for third-party injuries and damages up to an amount of ₹7,50,000. Thus, the benefits of third-party plans are available when you purchase a comprehensive cover.
Facility for add-on covers: The main advantage of a comprehensive policy is having the facility to fine-tune your insurance plan. Since there are myriad add-ons that you can opt for, the compressive policy can be customised to exactly suit your needs. For instance, you reside in a flood-prone area. Buying an engine protection add-on will be a prudent choice. A zero depreciation add-on is no-brainer wherein you need not worry about depreciation being deducted from your pay-out amount. There are many such additional riders that end up increasing the premium too. So, a car insurance calculator is a nifty tool that help you shortlist necessary covers while having an adequate insurance coverage.
Further, make sure to evaluate the sufficiency of your policy at each car insurance renewal. This way, any changes in driving conditions, users of your car, or any other factors can be adjusted in your insurance coverage.