An Overview of Standalone Own Damage Car Insurance
Car owners in India are required by law to have a car insurance policy that covers third-party liabilities. This is called third-party car insurance and it primarily covers damages or injuries caused by the insured car to a third-party. However, this policy does not cover any damages to the insured car itself. For this, car owners can opt for standalone own damage car insurance.
While it is mandatory to have a third party car insurance policy in India, getting a standalone own damage car insurance is an optional choice. However, it is recommended to buy it along with your third party car insurance to protect yourself from financial losses caused to your car in a road accident.
Let’s see the features and benefits of a standalone own damage car insurance in detail:
What is the scope of coverage in a standalone own damage car insurance?
Buying a standalone own damage car insurance is essential as it complements the third-party car insurance by offering you financial assistance for damages caused to your own car due to accidents, theft, natural disasters, and more. It is specifically crafted to protect your own car and its accessories.
You can further increase the scope of coverage of your car insurance by purchasing add-on riders such as zero depreciation cover, consumables cover, return-to-invoice cover, roadside assistance cover, etc.
Zero Depreciation Cover:
The zero-depreciation add-on covers damages without accounting for depreciation on the insured car’s parts. If the insured car needs to be repaired, the policy will not deduct the depreciation value of the damaged parts, but shall cover the entire cost.
Consumables Cover:
The consumables add-on covers all consumables except the fuel. Some of the consumables that are covered under this add-on are nuts, bolts, screws, washers, brake oil, engine oil, gearbox oil, power steering oil, radiator and AC gas, oil filters, wheel balancing weights, etc.
Return-to-invoice Cover:
The return-to-invoice add-on provides the total invoice value of your car in case it is stolen or cannot be repaired.
Roadside Assistance Cover:
The roadside assistance add-on is a service offered by car insurance companies where they would arrange a mechanic for you in case your car shuts down in the middle of the road. You can avail roadside assistance for some minor repairs, towing, battery breakdown, flat tyre, key loss, fuel delivery, accommodation arrangement, travel arrangement, etc.
What is not covered in a Standalone Own Damage Car Insurance?
As stated above, a standalone own damage car insurance policy covers cost of damage to own vehicle and will not cover the damages caused to third party, in addition to this, below are some scenarios where a car insurance company would not accept your claim:
- Vehicles driven by a person who does not have a valid driving licence.
- Damage caused to your car in a drink and drive situation.
- Damage caused to your car during a war or nuclear attack.
- Damage caused due to regular wear and tear.
It is advisable to read the policy statement to get details on inclusions and exclusions of your car insurance.
Some useful tips in choosing the right car insurance policy:
Choosing the right type of Standalone Own Damage Car Insurance is important as it can provide the right kind of financial protection in the event of an accident or theft. You should take the time to research and compare different policies and make sure to read the policy statement and understand the terms, conditions and restrictions of the chosen car insurance policy before signing a contract.
- Evaluate the different types of car insurance before you choose the right one.
- Check IDV and premiums for determining the most cost effective policy.
- Select insurance companies having high ranking in claim settlement ratio, solvency ratio, cashless garage network and online reviews.
- Purchase add-ons only if it is needed.
Conclusion:
Standalone own damage car insurance has many benefits for car owners, including protection against theft or loss, peace of mind, affordable premiums, and easy claims processing. By purchasing this policy, car owners can avoid the expenses associated with repairing or replacing a damaged car out of their own pockets. Therefore, it is an essential policy that every car owner in India should consider. It is the best way to insure their vehicles against damages, theft, accidents and other unforeseen circumstances.
Lastly, car owners should carefully evaluate premium rates, policy inclusions and exclusions, and other crucial factors when purchasing a car insurance policy to ensure they are adequately covered.
