Differences Between Collision and Comprehensive Insurance for Cars

Collision and comprehensive car insurance are types of insurance that help to cover the damages of the vehicle. It also talks about the importance of understanding one’s vehicle insurance policy and available options.

 

This blog post discusses collision and comprehensive insurance for vehicles and how they differ from each other. It also stresses the importance of understanding one's vehicle insurance policy and available coverage options. Shriram General Insurance recommends assessing one's needs thoroughly before purchasing an insurance plan.

 

The aftermath of a car accident can be stressful and can result in financial liabilities. That is why having the right insurance coverage for one's vehicle is a wise decision. Collision and comprehensive insurance are two types of four-wheeler insurance that can help one recover from financial loss resulting from damages and liabilities related to one's car.

 

When choosing between collision and comprehensive insurance, it is crucial to consider the age and value of one's vehicle as well as one's driving history and other risks. For a new or premium/luxury car, collision and comprehensive insurance can provide valuable protection against unexpected damages. With that said, let’s understand about Collision Car Insurance.
 

 

What is Collision Car Insurance?

Collision insurance coverage is a type of car insurance that covers the cost of repairing or replacing one's vehicle if it is damaged in a collision, regardless of who is at fault for the accident.

 

Collision insurance coverage generally covers damages resulting from:

 

• Collision with another vehicle
• Collision with an object
• A single car accident

 

However, the coverage does not protect against the damages done to other vehicles or properties or any injuries to the policy holder, the driver or others involved in the accident.

 

When one purchases collision insurance coverage, one will be required to pay a deductible amount before insurers such as Shriram General Insurance cover the remaining costs of repairs.

 

The higher the deductible amount, the lower will be one's insurance premium.

 

Collision insurance coverage can be optimal if one has a new or expensive vehicle. But it may not be necessary in the case of an older or less valuable one.
 

 

What is Comprehensive Car Insurance?

It is a complete insurance policy that covers the insured against their own damages as well as third-party liabilities associated with the insured vehicle.

 

A comprehensive vehicle insurance policy can protect against:

 

• Thefts
• Natural disasters
• Accidental damages
• Fires
• Strikes
• Man-made disasters
• Third-party damages

 

Shriram Car Insurance provides the following add-ons that help enhance one's comprehensive insurance policy:

 

• Zero depreciation cover
• Reimbursements for emergency transport and hotel expenses
• Return to invoice cover
• Motor protection cover
• Personal belongings cover
• Total reimbursement in the case of the total loss of a new vehicle
• Key replacement
• Multi-car rebates
• No Claim Bonus (NCB)

 

These add-ons can provide peace of mind and help one stay protected in unexpected circumstances for an additional premium.

 

Benefits of Car Insurance Coverage

Here are some benefits of the four-wheeler insurance coverage provided by reputed insurers such as Shriram General Insurance:

 

Coverage against all damages

The objective of a comprehensive vehicle insurance policy is to provide security in the event of an accident that causes damages to third-party people or properties as well as injuries to the insured and damages to the insured vehicle.

It includes protection from

• Natural disasters
• Riots
• Thefts
• Cashless Garages

Cashless garages are a network of vehicle repair shops that the policy holder can visit to get their vehicle repairs done without any additional costs.

The insurance provider settles all the bills with cashless garages, although there may be additional payments required from the vehicle owner depending upon the coverage inclusions and exclusions.

 

No Claim Bonus

The car owner is eligible for a NCB on their insurance policy if he or she does not file any own damage claims for a year; the car insurance provider may offer an NCB up to 20%, which is equivalent to 20% off the premium payable at renewal.  

 

The NCB can range from 20%, 25%, 35% and 45% to a maximum of 50% if one does not file a claim in the next two, three, four and five years respectively.

 

The NCB is only available to vehicle owners who renew their comprehensive insurance policies and not to those who only hold third-party four-wheeler insurance plans.

 

Collision vs Comprehensive Insurance: Which is Ideal?

Choosing between collision and comprehensive insurance can be a difficult task, especially if one is not familiar with the features of each type of coverage.

Take a look at the table below to decide which coverage to choose:

Vehicle	Collision Insurance Coverage	Comprehensive Insurance Coverage
New and expensive car	Yes	Yes
Low-value and old car	No	Yes
Theft protection	No	Yes
Natural disaster protection	No	Yes
Area of residence	Yes, if you live in a high-traffic area	Yes, if you live in an area with a high rate of car theft

 

When one is deciding between purchasing collision and comprehensive insurance plans for vehicles, the policy holders need to consider:

 

• Age and value of the vehicle
• Location of coverage
• Driving history
• Personal finances
• Insurance premium payable
• Lender requirements

 

Choose Between Collision and Comprehensive Insurance Today

Here's how vehicle owners can buy insurance coverage for their cars:

Step 1: Enter the basic details of the new car to estimate the premium payable:

• Car registration number and mobile number
• Details of the car manufacturer, model and variant
• Date of Registration

 

Step 2: Provide the details of the vehicle owner and choose the suitable policy and add-on covers of one's choice:

• Enter details such as one's name, email ID and address.
• You may choose the policy and add-ons based on your needs.

 

Step 3: Complete the online payment and get instant car insurance:

It can be completed through various modes such as debit card, credit card and net banking and secure the car insurance plan.

 

Takeaways

Vehicle owners are advised not to wait until it is too late to protect their vehicles and finances.

Collision and comprehensive insurance policies are essential for any person looking for protection against financial and legal risks and liabilities while driving on the road. 

With the right vehicle insurance coverage, one can enjoy peace of mind and ensure protection from all unexpected events. So why wait? Contact Shriram General Insurance today to find the perfect coverage.

 

Key Highlights

• Comprehensive vehicle insurance is meant to safeguard against any liability and provide complete protection for the insured car.
• Collision insurance coverage is meant to provide safety against the cost of vehicle repairs in the event of a collision.
• Policy holders can also opt for third-party and own damage coverage to ensure maximum protection.
• Buying the necessary add-ons for a comprehensive car insurance policy can help to prevent any unnecessary costs later on.

 

FAQs

1. What is the difference between collision and comprehensive insurance policies for vehicles?

Collision vehicle insurance is a type of coverage that protects against damages to one's vehicle in the event of an accident.  In comparison, comprehensive insurance covers these damages as well as those caused by non-collision events such as thefts and natural disasters.

 

2. What are the factors that determine the premium for a collision or comprehensive insurance policy for a car?

The premium for a collision or comprehensive insurance policy is determined by several factors:

 

1. Model and age of the vehicle
2. Driver’s age and driving history
3. Location
4. Coverage Limits
5. Add-ons

 

3. Can one choose their vehicle repair shop in the case of collision and comprehensive insurance claims?

Yes, the insurance companies give policy holders the right to choose the repair shop where they want their car repaired. However, some insurers may have repair shops or networks that will work and if the policy holder chooses a repair shop outside of this network, they may have to pay additional costs.

 

4. Can one choose their deductible amount for collision and comprehensive insurance policies for vehicles?

Yes, one can typically choose the deductible amount for collision and comprehensive insurance policies for vehicles. Choosing a higher deductible can help lower one's insurance premiums, but it also means one will have to pay more out of pocket if a claim needs to be filed.

 

5. What are the benefits of Shriram General Insurance?

 We provide a range of benefits to its policy holders, such as affordable premiums, super-fast claim settlements with minimal documentation, a digital-friendly platform, easy, quick renewal and 24x7 customer support.