What Full Coverage Car Insurance and Why It Matters?

What Does Full Coverage Car Insurance Mean?

Full coverage Car Insurance is simply a term for a combination of different types of insurance that provides comprehensive protection for your vehicle. Although the term "full coverage" is used, it's important to know that no insurance policy can cover every possible situation.

 

What Is Included in Full Coverage Car Insurance?

Full coverage Car Insurance includes three main components:

 

• Third-Party Liability Insurance: The third party liabilty insurance covers expenses incurred due to the damages caused to other people and property in an accident.

• Collision or Own Damage Insurance: This covers the cost of damages to your vehicle caused by a collision, regardless of whether it is your fault or not.

• Comprehensive Insurance: The comprehensive car insurance policy covers the cost of damages caused by collision accidents, theft, natural disasters and Third-Party Liability.

 

Add-ons that can be included in a full coverage auto insurance are:

 

• Personal accident cover: This is included to safeguard the driver of the vehicle in case they sustain, injury, or loss of life due to being involved in an accident.

• Roadside assistance: The roadside assistance add-on cover provides assistance with towing, fuel delivery, and minor repairs in case of a car breakdown.

• Zero depreciation: The Zero Depreciation add-on cover provides compensation for the full value of the car in cases where it is irreparable or stolen, without accounting for depreciation.

How Much Does Full Coverage Insurance Cost, and How Can I Save ?

The full coverage Car Insurance cost in India depends on various factors:

 

• Vehicle’s age and make: The premium of the full coverage will depend on the Insured Declared Value (IDV), of the vehicle. It is the maximum amount the insurance company will pay the policyholder, in case of theft of the vehicle or it is beyond repair.

• Location: Location can play a major role while determining the premium of the full coverage. India is classified into two zones— Zone A and Zone B. Zone A covers the metro cities, like Delhi, Mumbai, Kolkata and Chennai, and Zone B covers the rest of India.

• Claim record: If you maintain a claim-free record, it may earn you discounts on your premium.

To save on your Car Insurance full coverage policy, you can look at these tips:

• Compare policies and plans that have varying benefits, coverage and differences in premium value.

• Maintain a clean driving record by practicing responsible and safe motoring

 

Finding the Right Car Insurance Coverage for Your Needs

Car Insurance coverages can differ for every individual and considering these points listed below will help you choose the right insurance for your car.

 

• Assess your vehicle’s value: If you have a new car or a higher end car consider getting comprehensive or full coverage.

• Review policy options: A good insurance policy includes the right combination of liability, collision, and comprehensive coverage that is aligned with the policyholder’s needs. Check if the policy you are considering provides these essential coverages.

• Check for add-ons: To customize your policy according to your needs, you could consider add-ons like Zero Depreciation or Personal Accident Cover after evaluating the points above.

 

At Shriram General Insurance, we know every vehicle owner has unique needs. This is why we provide full coverage Car Insurance plans that can be tailored to fit your requirements and budget. Our policies provide comprehensive protection while offering affordable premiums, quick claim processing, and exceptional customer service.

 

Benefits of Having Full Coverage Car Insurance

Full coverage Car Insurance is your ultimate safeguard on the road in a world full of unpredictable twists and turns.Shriram Car Insurance goes beyond just the basics and provides comprehensive protection for both your vehicle and financial well-being. Here’s why investing in a full coverage auto insurance plan is a smart choice:

 

• Comprehensive protection: Full coverage in car insurance provides protection against a broader range of risks, from small accidents to natural disasters.

• Financial security: With full coverage Car Insurance, you are protected from unexpected expenses and may not have significant out-of-pocket costs.

• Flexibility with add-ons: You can customize your full coverage for Car Insurance with add-ons that cater to your  needs, like engine protection or roadside assistance.

• NCB benefits: You can accumulate a No Claim Bonus (NCB) if you manage to go claim-free. This means you can significantly lower your premium over time.

• Peace of mind: When you are covered for a more comprehensive array of accidents and situations, you can drive with more confidence!

 

Who Should Get Full Coverage Insurance and Why?

Full coverage insurance is not something that is a necessity for everyone, but it is particularly beneficial for people like:

 

• New car owners: They can protect their car’s resale value and avoid expensive repair or replacement costs with full coverage Car Insurance. This means better protection right from day one.

• Drivers in high-risk areas: You may want to consider full coverage if you live in or often drive through areas that put you at a higher risk of theft and natural disasters.

• Loan or lease holders: If you have taken a loan or hypothecation to buy your vehicle, your lender may require you to purchase full coverage insurance until the loan is paid off.

Ultimately, you decide whether you want a full-coverage insurance plan or not. As mentioned earlier, carefully evaluate your situation and influencing factors, then decide if the cost of full coverage Car Insurance is worth it.

 

Wrapping up

Understanding full coverage Car Insurance is the first step towards better understanding both your policy and financial needs. We hope this blog has helped you understand the concept and better equipped you to customize your full coverage insurance plan!

 

FAQs

1. Is full coverage car insurance mandatory in India?

No, full coverage car insurance is not mandatory, but third-party liability insurance is compulsory for every vehicle owner under the Motor Vehicles Act of 1988.

 

2. How does full coverage differ from third-party insurance?;

Third-party liability insurance covers only the cost of the damages that you have caused to others or their property. Full coverage car insurance includes third-party liability, own damage insurance, and other add-on insurance covers, providing more comprehensive protection.

 

3. Can I customize my full coverage Car Insurance policy?

Yes, you can customize your full coverage Car Insurance policy. You can opt for add-ons like Zero Depreciation, Roadside Assistance and Engine Protection cover to tailor your full coverage insurance policy according to your needs.

 

4. How does the No Claim Bonus (NCB) impact my full coverage car insurance?

You can accumulate a No Claim Bonus (NCB) if you manage to go claim-free for a year. This means you can significantly lower your premium over time. This makes full coverage car insurance more affordable while providing comprehensive protection for your car.

 

5. What should I consider before choosing full coverage car insurance?

Before selecting the best full coverage Car Insurance policy for your needs, you must consider factors like your vehicle's value. It is also good to compare various plans to determine the best-suited one for you.