Comprehensive car Insurance: Everything You Need to Know

by

What is comprehensive car insurance?

This insurance provides complete coverage to the car owner, i.e. third-party liability, damage to the car, and also personal accident cover. Again, to get extra benefits like engine and gearbox cover, you can also take add-ons. 

Why should you buy comprehensive car insurance?

Many people prefer buying only third-party car insurance as it is forced by low. But remember, it will cover only the loss that happened to the third party. The loss happened to you and your car will not be covered by a third-party liability policy. So, you may have to bear a huge loss in case of your own damage due to an accident. Again, in third-party liability insurance, you will not get any add-on benefits to enhance your coverage. 

So, why should not you take comprehensive car insurance by paying a reasonable extra amount and get complete protection for yourself, your car, and third-party liability?

Benefits of Comprehensive car insurance

  1. Legal requirement: As third-party liability is covered under this policy, you will fulfill the legal requirement by taking this policy.
  2. Protects from third-party liability: Comprehensive car insurance covers the loss born by third-party due to an accident with your car. So, you do not have to worry at all to compensate the victim. Your insurer will bear both financial and legal expenses.
  3. Own damage cover: Any damage/loss to your car due to any human-made reason (theft, burglary, riots, and strike), fire, or natural hazards like earthquake, flood, cyclone, landslide, etc. will be covered by this policy.
  4. Personal Accident: In case of injury to your own body, it will cover up to Rs.15 Lakhs.
  5. Add-on cover: Adequate number of add-ons are available to expand your coverage.
  6. Membership discount: When you become a member of any of the organizations AAI (Automobile Association of India) or WIAA (Western India Automobile Association), you will get a discount on your payable premium.
  7. No-claim-Bonus (NCB): Available up to 50%

Who should buy comprehensive car insurance?

  • New car owners: A huge amount of money is invested when you buy a car. In such cases, you should make sure that your car is insured completely by purchasing comprehensive car insurance to protect yourself from further heavy expenses in case of any misfortune. 
  • Frequent traveler: Frequent travelers have comparatively more risk of accidents than less frequent car users. So, they should take comprehensive protection.
  • Luxury car owner: The more the value of your car, the more loss you have to bear. So, luxury car owners must buy comprehensive insurance.
  • People living in metro cities: In metro cities, traffic rates are very high and hence the chances of accidents.

So, here all car owners must buy comprehensive insurance.

  • If you are worried about small damages: Car owners who become worried about small damages like a scratch, then this insurance will provide you peace of mind.

What is covered and not covered in car insurance

What is covered?

  • Theft
  • Fire
  • Damage/loss due to natural hazards (Ex/; earthquake, landslide, cyclone, flood)
  • Loss/damage due to man-made reasons (Ex: Burglary, riots, strike)
  • Personal accident: Up to Rs.15 Lakhs (death, Permanent Total Disability (PTD), Permanent Partial disability (PPD), and Temporary Total Disability (TTD))

What is not covered?

  • Driving after consuming drugs or alcohol
  • Damage/loss due to any involvement in any illegal/criminal activities
  • Driving without a valid driving license
  • When a private car is used for commercial (business) purposes
  • Claim after the policy period
  • Natural wear and tear
  • Mechanical or electrical failure
  • Engine, tires, and tubes damaged except in case of an accident
  • Consequential loss
  • Loss or damage outside India

Add-on covers

  1. Engine & Gearbox cover: This add-on covers the damage to the engine and gearbox.
  2. Zero depreciation cover: By taking this cover, you will get the total claim amount without deducting the depreciation value.
  3. Return to Invoice cover: By taking this add-on, your sum insured includes ex-showroom price, road tax, and registration fees. So, you will get the whole amount you invested while purchasing your car in case of theft or total irrecoverable damage.
  4. NCB (No-claim-bonus) protector: You can get NCB benefits during your renewal even after taking a claim 
  5. Consumables cover: It covers the replacement and refill of consumables like nuts, bolts, grease, AC gas, washer, etc.
  6. Key replacement cover: It covers the lost key or damaged lock system.
  7. Daily allowances: When your car is in the garage for a long time (for more than a specified number of days), this add-on bears your daily transport expenses.
  8. Loss of personal belongings
  9. Loss of electrical equipment
  10. Loss of non-electrical accessories

NCB that you will get on your car insurance

NCB (No-Claim-Bonus) is a reward provided by the insurer when you do not make any claim in an entire policy period. You will get this benefit as a discount on your payable premium and its percentage increases with an increase in the number of claim-free years. 

Look at the table to get a better idea.

claim-free yearNCB Benefit
1st year20%
2nd year25%
3rd year35%
4rt year45%
5th year50%

Factors affecting comprehensive car insurance premium

  1. Age of the car: Age brings depreciation because of regular use. So, the total value of the car gradually decreases, and hence the premium also decreases.
  2. Location of use: The location where you drive your car affects the chances of an accident you have to face. If you are staying in metro cities like Delhi and Kolkata, the chances of accident increases, and hence the premium also increases. In cities with less traffic intensity, premiums will be less. In hilly areas also premium will be high.
  3. Fuel used: The fuel used for driving your car will impact the payable premium. Car using CNG gas will have to pay more premium than car using petrol.
  4. Engine capacity: High engine capacity (high CC (Cubic Centimeter) value) increases the value of your vehicle. So, it also increases the premium.
  5. AAI/WIAA membership: Members of AAI (Automobile Association of India) and WIAA (Western India Automobile Association) get discounts on vehicle premiums.
  6. Manufacturing company: The Company from where you bought your car also affects your premium to a great extent. Owners of cars bought from companies like BMW, Audi, etc. will have to pay more premiums. Because the cars of these companies have a higher value.
  7. No-Claim-Bonus (NCB): The insurance company provides NCB benefits to its customer for claim-free years. Under this, you will get a discount on your premium at the time of renewal after a claim-free year. With this benefit, you can get a discount of up to 50%.

How to reduce the premium?

1. Do not make small claims: Whatever may be the number of your claims (1 or more) in your policy period, you will not get a No-Claim Bonus during renewal. So, do not make claims for those losses which you can afford so that you will get a discount on your premium during renewal.

2. Install anti-theft devices:  Anti-theft devices like gear locks, break locks, and steering locks increase the safety of your vehicle and hence reduce the payable premium.

3. Do not take unnecessary add-ons: Add-ons expand your coverage. But, it will also increase your payable premium. So, take Add-ons wisely.

4. Become a member of AAI/WIAA: Members of AAI (Automobile Association of India) and WIAA (Western India Automobile Association) get discounts on their vehicle insurance. So, become a member and reduce the payable premium.

5. Purchase policy online: When you purchase a policy online, the cost of agent commission and other paperwork gets omitted. So, insurance companies provide discounts on buying policies. So, purchase the policy online and reduce the premium. 

6. Take pay-as-you-drive cover: It is a new add-on introduced to the market in 2020. This add-on saves you from paying unnecessarily while not using your car. 

7. Increase voluntary deductibles: Deductibles decrease the liability of the insurer. So, increasing deductibles reduces your premium.

8. Do not make unnecessary modifications: Modifications increase the value of the vehicle and hence increase the premium. So, modify your vehicle only to the extent of the requirement. It will save you from paying unnecessary extra premiums.

How to buy Comprehensive car insurance online?

Step 1

Visit the Shade Tree Official website. 

Step 2

Select car insurance in the Motor Insurance section. 

Step 3 

Fill in the details of your car. Now, available plans will be displayed

Step 4 

Select comprehensive insurance according to your requirements. 

Step 5

Select the add-ons you want to take. 

Step 6 

Pay the premium.

Step 7

Your policy is created. Your policy documents will be sent to your registered mail ID.

Documents required to buy car insurance

KYC (Aadhar Card, PAN Card)

How to renew your Comprehensive car insurance?

Step 1

Visit the Shade Tree Insurance website and go to Renew tab.

Step 2

Log in to your account by providing the required details like your policy number and mobile number.

Step 3

Select the Comprehensive plan. Add or remove add-ons according to your requirement.

Step 4

Make the payment.

Step 5

In a few moments, your policy will be renewed. You will get your policy copy in your registered mail ID.

Documents required to renew your comprehensive car insurance

  • Previous Policy copy
  • RC copy
  • KYC (Aadhar Card, PAN Card)

How to raise a claim for your Comprehensive car insurance?

Follow the steps given below to claim your comprehensive car insurance.

Step 1

Inform your insurer immediately after the accident and get a registration number. Take photographs of the damage and keep them as evidence.

Step 2

A surveyor will come from the insurer to inspect the incident. Cooperate with him completely.

Step 3

Then you can take your car to a garage for repair. If necessary, the insurer will arrange to tow your car.

Step 4

In case of repair in a network garage, the insurer will directly pay the bills to the garage and in case of a non-network garage, you will have to pay the bills first. Then the company will reimburse the amount. 

Documents required to claim car insurance

  • Duly filled claim form with your signature
  • Policy copy
  • RC (Registration Certificate) copy
  • Driving license of the driver
  • Original repair bills and payment receipt (in case of reimbursement)
  • KYC (Aadhar Card, PAN Card)
  • FIR copy in case of theft, injury/damage to the third party; and damage/loss due to strike, riots, etc.
  • ID proof of the insured person

Top insurance companies providing car insurance

Company nameCashless garagesClaim settlement Ratio (CSR)
HDFC ERGO General Insurance8,200+91.23%
IFFCO Tokio General Insurance4,300+91.92%
Digit5,800+80.47%
TATA AIG General Insurnace7,500+96%
SBI General Insurance16,000+89%
ICICI Lombard General Insurance12,000+93.4%
Royal Sundaram General Insurance5,200+94.23%
New India Assurance Co. Ltd.3000+85.35%
Acko    —–83%
Reliance General Insurance8,700+98%
MAGMA HDI General Insurance4,000+92.5%
Kotak Mahindra2,300+94%
Universal Sompo General Insurance3,500+90.78%
Oriental Insurance3,100+91.5%

Leave a Comment