What Mis-happenings will be covered in Car Insurance?

3 min read

Car insurance is not an option, it’s a necessity. Even if you are completely at fault for an accident, which can oftentimes get complicated, car insurance will help protect your assets and provide financial support. Car accidents can cost thousands of dollars in repairs, lost wages from time off work, and even lawsuits if the other driver decides to sue for damages. That’s why it’s important to make sure you have enough coverage on your policy so that these costs don’t fall back on you or those who depend on you financially. This blog will provide insight into the miss-happenings that are covered by car insurance policies.

Car Insurance Policy Coverage

When you are looking for car insurance, it can be difficult to figure out all of the different coverage options available. One option is to get a comprehensive plan which includes both own damage and third-party liability. The other option is to divide your coverage between these two types of benefits. 

1. Standalone Own Damage

Standalone Own Damage coverage is exactly what it sounds like – coverage against damage to your own insured car. The policy under own damage coverage will provide cashless repairs or reimbursement of money if the insured car is damaged.
Here is a list of all the issues that standalone own damage coverage includes:

  • Accidents
  • Natural calamities like Fire
  • Theft

However, it should be noted that electrical or mechanical breakdown, accidents while driving in an intoxicated state or without a license is not covered by own damage. 

2. Third-Party Liability

In the event that You are legally responsible for any  third party damage or injury, your insurance company will indemnify you. Losses incurred as a result of third party injuries or property damages are covered under a third-party liability policy.
Here is a list of all the issues that third-party liability coverage includes:

  • Third-party death or physical harm
  • Third-Party Car Damage caused by the insured car
  • Damage caused to third-party property by the insured car

However, it should be noted that third-party property damage coverage usually has an upper limit depending on the insurer. Make sure to understand coverage extends before purchasing a plan. General exclusions like driving in an intoxicated state or without a license are not covered by third-party liability.

3. Comprehensive Coverage

Comprehensive coverage under a car insurance policy includes coverage from both standalone own damage and third-party liability. However, the premium amounts are much higher in the case of comprehensive coverage. It includes:

  • Accidents
  • Natural Calamities like Fire
  • Man-made Calamities like Riot
  • Theft
  • PA Cover
  • Third-party Liability

General exceptions like natural wear and tear of car parts, drunk driving, or accidents outside country limits are not covered under Comprehensive coverage.

Conclusion

The process of buying car insurance is not as simple as it may seem. You need to understand your needs and budget before you compare insurance policies online or in person. It’s important that you know what coverage options are available to meet your individual needs so that there are no surprises when shopping for a car insurance policy.

 

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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