Why you must always buy a comprehensive car insurance policy

It is highly effective as compared to other policies that companies sell and saves the buyer from many hassles.

We all are aware of the fact that in India it is mandatory to have a motor insurance policy under the Motor Insurance Act. A car insurance will protect you from personal liability should you be involved in an accident. The accidental costs can all but spoil your finances and may cause mental agony as well. There are two types of insurance policies, namely, third party liability and comprehensive insurance policy. But it is advisable to purchase comprehensive insurance.

Why comprehensive car insurance policy

A comprehensive insurance policy protects your car against natural calamities and man-made calamities such as terrorism, road rage and many more. Whereas the compulsory third party liability car insurance provides coverage to the policyholder’s liability for death/disability towards a third-party and/or assets damage caused to them.

Comprehensive insurance policy is optional hence many people avoid it. However, if you don’t have one, you won’t be able to get any return in case of a car wreck. Therefore, it is advisable for you to buy a comprehensive insurance plan for your car that provides over all cover.

Benefits of comprehensive car insurance policy

There are several reasons for which you should buy a comprehensive insurance plan as it offers wide coverage. Below are the top most cases when you would need it:

In the case of theft

In a case where your car is stolen or gets broken-in, comprehensive insurance policy will provide the required coverage for maximum losses. By having this insurance policy, you can feel secure while driving. On buying the insurance policy, your car insurance premiums may go up, but it's a good investment.

Hail or flood damage

There are many insurance policies that do not provide coverage on hail or flood damage sustained to your car. But if you have a comprehensive policy, then you can easily get the coverage on all damages. Many people end up with hail damage and without extra coverage they will have to pay from their pocket to repair it.

Animals

Regrettably animals can pose a danger as we drive. This is because there are many highways and roads that are directly build in their habitats. It’s true that we don't want to hit any animal, but sometimes we come across such type of cases.

In such cases, a comprehensive coverage will provide the required coverage. It also offers coverage on damages that are caused by birds as well.

Transportation costs

If your car gets damaged badly and is unable to move, then the insurance company will bear the expenses of transportation and the related expenses also. In many cases it will be in the form of a no-cost rental car while your car is being repaired.

Many insurers do have an exclusion in which you have to wait for 48 hours after your car becomes disabled before claiming for this coverage. It will offer coverage on rental cars and taxi fares so this saves a lot of your money. By purchasing a comprehensive policy you will get coverage for most unlikely events.

Illustration: Uttam Ghosh/Rediff.com

Naval Goel is CEO and Founder, PolicyX