When choosing car insurance, understanding the differences between comprehensive insurance vs own-damage cover is essential.
Own-damage insurance covers losses from incidents like accidents, theft or fire that affect only your vehicle. In contrast, comprehensive car insurance extends beyond just own-damage, covering third-party liabilities and additional risks.
Let us explore own-damage cover vs comprehensive cover to help you decide the best coverage for your automotive needs.
What is Own-Damage Car Insurance Policy
Own-Damage (OD) cover is a type of car insurance that covers the cost of damages to your own vehicle. It protects you against the financial liabilities arising from damages to your car caused by accidents, theft, fire and natural disasters.
Unlike third-party insurance, which covers damages to another person’s property or injury claims,
own-damage car insurance focuses solely on your vehicle. This policy ensures that in the event of mishaps affecting your car, you are financially safeguarded against the costs of repairs or replacement.
Benefits of Own-Damage Car Insurance Policy
Covers natural calamities like floods, lightning, earthquakes, fires, etc.
Protects against theft and malicious acts.
Covers damages from self-ignition and explosions.
Includes inundation, vandalism, riots and terror attacks.
Covers damage to your car during an accident.
Protects during transit by rail, road, air or elevator.
Drawbacks of Own-Damage Car Insurance Policy
Does not cover damages to third-party vehicles or property.
No coverage for injuries to other people involved in an accident.
Losses due to the depreciation of the car’s value are not covered.
General wear and tear of the vehicle is excluded.
Does not cover mechanical and electrical failures.
What is Comprehensive Car Insurance Policy
Comprehensive car insurance is an extensive policy that not only covers damages to your own vehicle from accidents, theft and natural disasters but also includes liability for damages or injuries caused to third parties. Additionally, you can get personal accident cover and choice of add-ons with comprehensive car insurance.
This type of insurance is ideal for offering complete protection against a range of unforeseen events, which is why it is a preferred choice among many vehicle owners.
Comprehensive car insurance safeguards your financial interests from all angles. It ensures that you are covered in almost any scenario that could harm your vehicle or others involved in an accident.
Benefits of Comprehensive Car Insurance Policy
Covers your car and its belongings in case of an accident.
Covers death or bodily injury to a third party.
Covers damages to third-party vehicles.
Includes damages due to self-ignition and explosions.
Covers third-party property damages.
Covers natural calamities like floods, lightning, earthquakes and fire.
Coverage for car theft and acts of malice.
Covers man-made disasters like inundation, vandalism, riots and terror attacks.
Covers transit risks.
Drawbacks of Comprehensive Car Insurance Policy
- Losses due to the car’s value depreciation are not covered.
- Does not cover mechanical or electrical failures.
- Does not cover regular wear and tear of your vehicle.
- Does not cover consequential loss.
Difference between Comprehensive and Own-Damage Insurance
Feature |
Own-Damage Car Insurance |
Comprehensive Car Insurance |
Coverage | Covers damages to your vehicle from accidents, natural disasters or theft. | Covers damages to your vehicle, third-party liabilities and additional risks such as vandalism and damages from unidentified third parties. |
Premium | Lower compared to comprehensive due to limited coverage. | Higher due to extensive coverage and add-on options. |
Add-on Covers | It includes fewer add-ons, which mainly focus on vehicle damage protection, such as engine protector, NIL depreciation, and consumables cover. | Extensive add-ons, such as Pay As You Drive, Engine Protector, Nil Depreciation, Consumables Cover, Key Protect, EMI Protection, NCB Retention Cover and more. |
Depreciation Rates | Depreciation affects the claim amount; you may need to take the NIL depreciation add-on. | NIL depreciation add-on provides coverage of the full repair amount on parts made of fibre and glass (excluding tubes and tyres) |
Third-Party Liability Cover | Not Included. It requires a separate third-party liability policy to comply with legal requirements. | Third-party liability is mandatory and included. It covers the cost of damages and injuries to third parties. |
Personal Accident Cover | Not typically included but can be added at an additional cost to cover injuries to the driver. | Mostly included by default and provides coverage for the driver and passengers for injuries or death. |
Flexibility and Suitability | More suited for older vehicles or those looking for specific, cost-effective coverage without third-party liability. | More flexible in terms of coverage options. Suitable for new, expensive or frequently used vehicles in high-risk areas. |
Claim Process | Generally quicker and more straightforward as it only involves damages to the insured vehicle. | Generally, it involves a comprehensive assessment due to the inclusion of third-party damages, which might extend the claim's duration. |
Risk Protection | Focussed protection. It is best for those primarily concerned with damages to their own vehicle only. | Provides broad protection against a variety of risks. It is ideal for complete peace of mind. |
Own-Damage Vs Comprehensive Insurance: Which One Should You Buy
When choosing between own-damage cover vs comprehensive car insurance policy, you should consider your specific needs and circumstances.
Own-damage car insurance is suitable if you are primarily concerned with vehicle damages from accidents, theft or natural disasters. It’s a focused choice that costs less but does not cover third-party liability.
For new vehicles, it is compulsory to buy a three-year third-party liability cover. Vehicle owners should opt for a standalone own-damage car insurance policy to safeguard their cars, along with the legally mandatory third-party cover.
Comprehensive car insurance, on the other hand, offers extensive coverage, including third-party liability and personal accident cover. It's ideal for those seeking thorough protection against a wide range of potential risks. If you drive frequently in busy areas or if your vehicle is expensive, comprehensive car insurance is the ideal choice.
Why Should You Choose Reliance General Insurance for Car Insurance Policy
At Reliance General Insurance, we offer both own-damage car insurance and comprehensive car insurance at affordable rates, starting at just ₹238 per month.
We ensure that managing your
car insurance is as hassle-free as possible. We provide access to over 10,000 cashless garages nationwide and a seamless claim process, which also features easy video claims and a quick survey within 48 hours.
We provide a wide range of add-ons and the convenience of zero-paperwork online purchases and renewals. We have a dedicated 24x7 customer support team that assists you all the time.
Choose Reliance General Insurance for own-damage or
comprehensive car insurance for reliable car protection. Check out our policy details to learn the features and benefits of comprehensive vs own-damage car insurance policies.
Conclusion
Comparing own-damage vs comprehensive insurance boils down to assessing your specific needs and risk exposure.
If your primary concern is safeguarding your vehicle against potential damages without the additional coverage for third-party liabilities, Own-Damage (OD) car insurance might be the right choice for you.
However, if you seek extensive protection, covering the damages to your vehicle, third-party liabilities and personal accident cover, then comprehensive car insurance must be the choice. It is suitable for drivers who frequently navigate busy areas or have new or expensive vehicles.
Ultimately, the choice depends on balancing your budgetary constraints against the potential risks you might encounter on the road.
Frequently Asked Questions (FAQs)
Can I buy my own-damage car insurance without third-party insurance?
Third-party insurance has been made mandatory by law for all kinds of vehicles. So, you cannot buy only your own-damage car insurance without already having third-party liability coverage.
How does No Claim Bonus (NCB) work for car insurance?
The No Claim Bonus is a discount offered on the renewal premium if no claims are made during the previous policy period.
What is the connection between deductibles and car insurance premiums?
The deductible is the amount you agree to pay out of pocket as a percentage of the claim amount. Choosing a higher deductible can lower your insurance premium, but it also means more out-of-pocket expenses during a claim.
