Comprehensive Car Insurance Explained
Comprehensive Car Insurance Explained
Car insurance is an essential aspect of securing your four-wheeler as it protects against unexpected risks. To offer protection, various car insurance plans are available, including third-party, own-damage, and comprehensive car insurance plans.
Among the different types of coverage available, a comprehensive car insurance plan offers the widest protection by covering both third-party liabilities and damages to your own vehicle. From accidents and theft to natural disasters and man-made catastrophes, comprehensive car insurance ensures that you and your vehicle stay secure on the road.
This guide will explain what comprehensive car insurance covers, how it works, and why it can be the most reliable protection for your vehicle.
What are the Risks Covered Under Comprehensive Car Insurance
5 Types of Car Insurance Coverage Explained
What is Comprehensive Car Insurance?
Comprehensive car insurance is a type of policy that provides extensive protection for your vehicle. It offers dual coverage: protection against damage to your own car as well as coverage for third-party liabilities.
For example, imagine you are driving back home from work and accidentally hit another car while parking. The collision results in damage to both vehicles. With a comprehensive car insurance plan, the repair or replacement costs for both your car and the third-party vehicle will be covered.
To enhance vehicle insurance coverage, the comprehensive car insurance plan also comes with various add-ons, including roadside assistance, zero depreciation, engine secure and more. Vehicle owners can customise their comprehensive car insurance plan based on their needs.
Also Read: 5 Types of Car Insurance Coverage Explained
Benefits of Comprehensive Car Insurance
The best comprehensive car insurance plan offers a wide range of benefits that provide extensive protection and security to vehicle owners. Here are some of the benefits:
Third Party Liability Coverage
Comprehensive plans include third-party coverage, which protects you against financial and legal liabilities arising from injury, death, or property damage caused to a third party by your vehicle. This mandatory coverage safeguards you from potentially huge compensation claims, ensuring you meet the legal requirements and avoid fines or lawsuits.
Own Damage Cover
It protects against damage to your own vehicle caused by accidents, collisions, or other mishaps. This benefit helps you avoid costly out-of-pocket repairs, covering collision damage and loss due to calamities or theft. It also allows you to restore your vehicle without a major financial burden.
Extensive Coverage
Comprehensive car insurance plans provide extensive coverage to vehicle owners against a wide range of risks, including accidents, theft, fire, natural disasters such as floods and earthquakes, and vandalism. This all-around protection ensures that your car is covered in diverse situations, reducing financial stress during unexpected events.
Customisation Benefits
Another benefit of the best comprehensive car insurance plan is that it offers customisation benefits to the users. Vehicle owners can include add-ons like tyre security, consumables cover and more in their plan, enhancing the overall vehicle coverage.
Cashless Claims Benefits
The comprehensive car insurance plan also comes with a cashless claim benefit. Most insurers have a network of partner garages where repairs can be done without upfront payment. This facility streamlines claim processing and expedites the repair process.
How Does a Comprehensive Car Insurance Policy Work?
A comprehensive car insurance plan works by providing all-around coverage to your vehicle and covering third-party liabilities. When you purchase the policy, you receive financial protection against a wide range of scenarios, including accidents, theft, fire, natural disasters, and vandalism.
In the event of an accident, natural calamity, or theft, you must immediately inform your insurer and file a claim. The insurer may appoint a surveyor to assess the extent of damage.
Once you have paid the agreed-upon deductible, the insurer will settle repair bills directly with network garages (via a cashless facility) or reimburse you after submitting the repair bills and required documentation.
The policy also covers third-party liabilities and personal accident injuries in accordance with the terms of coverage.
Example of Comprehensive Car Insurance
Let us understand the comprehensive car insurance plan by example. Imagine Mr A’s car gets badly damaged in a flood. Because he has comprehensive insurance with Tata AIG, the company will cover his repair costs up to the IDV. If the damage is so severe that the car can’t be repaired, Tata AIG will pay him the IDV amount.
Additionally, Tata AIG covers reasonable costs if Mr A’s car needs to be safely moved to the nearest repair workshop after such damage. This protection and removal cost is covered up to ₹1,500 per claim.
Additionally, TATA AIG’s personal accident cover for the owner-driver is a valuable feature. Suppose Mr A suffers an injury that results in permanent total disability, such as loss of limb, arm, or sight, or in the unfortunate event of death due to an accident involving his car. In that case, TATA AIG provides compensation in accordance with the policy terms.
Also Read: What are the Risks Covered Under Comprehensive Car Insurance
TATA AIG Comprehensive Car Insurance Plan
TATA AIG offers a comprehensive car insurance plan that provides protection for your car against a wide range of risks, including accidents, theft, and flood. The bundled plan covers the vehicle owner for third-party bodily and property damage caused by the insured vehicle as well as vehicle own damage.
Auto Secure -Private Car Package Policy
TATA AIG Auto Secure: Private Car Package policy is designed to cover damage to your car due to accidents, theft, fire, and disasters, as well as third-party liability.
The plan also includes personal accident coverage, providing a lump sum payout in the event of serious injury or death of the owner-driver due to an accident.
Under this plan, vehicle owners can further enhance their coverage by paying a bit extra for add-ons such as zero depreciation, roadside assistance, and more.
Bundled Auto Secure - Private Car Package Policy
Bundled Auto Secure - Private Car Package policy comes with a 1-year policy for own-damage and a 3-year policy for third-party damage. It protects against accidents, theft, fire, natural disasters, riots, and malicious acts.
The policy includes personal accident cover for the owner-driver and covers legal liabilities to third parties. There are various add-ons available under the plan, such as zero depreciation, daily allowance, return to invoice, etc, for enhanced car coverage.
Disclaimer: Refer to the policy document for the exact information.
Key Features of TATA AIG Comprehensive Car Insurance
| Key Features | Benefits |
|---|---|
| No Claim Bonus | Up to 50% discount after 5 consecutive claim-free years. |
| Customisable with Add-ons | Various add-ons to enhance your four-wheeler coverage |
| Damages to Third Party | Offers coverage for third-party bodily and property damaged by insured vehicles. |
| Own Damage Cover | Offers coverage for own vehicle damage from natural and man-made disasters and more. |
| Cashless Garages | Wide network of 5900+ cashless garages |
| Personal Accident Cover | Offers coverage up to ₹15 lakhs |
| Claim Assistance | Team of 750+ claim experts for a fast and easy claim process. |
Inclusion and Exclusion Under Comprehensive Car Insurance
italic text
| Inclusion Under Comprehensive Car Insurance | Exclusion Under Comprehensive Car Insurance |
|---|---|
|
Normal Wear and Tear: The plan will not cover the normal wear and tear caused to cars due to regular usage. Negligent Driving: If damage or loss to the vehicle results from negligent driving, it will not be covered under the policy. Out of Geographical Location: If damage or loss to a car occurs outside the geographical location specified in the plan, it will not be covered under the plan. Racing & Illegal Activities: Any damage or loss to the vehicle resulting from illegal or racing activities is not covered under the plan. Violation of Traffic Rule: In the event of damage or loss to the vehicle due to a traffic rule violation, such as driving without a licence, it is not covered under the plan. |
Disclaimer: Refer to the policy document for the exact information.
Add-ons Offered Under TATA AIG Comprehensive Car Insurance
TATA AIG offers a wide variety of unique add-ons, such as engine security and nil depreciation, that vehicle owners can choose from based on their vehicle's needs.
| Add-ons | Description |
|---|---|
| Depreciation Reimbursement | Covers the amount of depreciation deducted under the own-damage claim for the replaced part. We will cover the first two claims reported under the policy issuance. |
| Daily Allowance | We will provide a Daily Allowance to help cover the cost of alternate transport while your vehicle is under repair. Coverage is available for up to 4, 6, 8, or 10 days, as per the policy schedule, and up to 15 days in case of total loss or theft. |
| Return to Invoice | Suppose your vehicle is stolen, totally damaged, or a total loss. In that case, this add-on pays the difference between your car’s depreciated insured value (IDV) and its original on-road price, including registration, road tax, and accessories. |
| No Claim Bonus Protection | This add-on will allow you to keep your accumulated NCB even if you file one claim during the policy year, provided you have had two or more claim-free years before. |
| Loss of Personal Belongings | The cover protects personal items inside your car against loss or damage exceeding Rs. 250. It excludes money, cards, jewellery, electronics, valuable documents, and similar items. |
| Emergency Transport & Hotel Expenses | Suppose the vehicle becomes immobilised after an accident. In that case, this add-on will cover the overnight stay or taxi charges to return to your place of residence or the nearest city you are travelling to. |
| Key replacement | The cover will reimburse costs for replacing lost or stolen vehicle keys and repairing locks if your car is broken into. Labour costs for lock replacement are included. |
| Engine Secure | It covers the cost of repairing or replacing your vehicle’s engine parts, gearbox, transmission, or differential damaged by water ingress or lubricating oil leakage. |
| Tyre Secure | It pays for the repair or replacement of your car’s tyres and tubes damaged by accidents. It covers issues like bulges, punctures, bursts, and cuts |
| Consumable Expenses | The add-on reimburses the cost of small but essential items, such as engine oil, gearbox oil, lubricants, nuts, bolts, screws, grease, filters, AC gas, and similar materials used during vehicle repairs after an accident. |
| Roadside Assistance | It is a service that helps you during vehicle accidents or breakdowns with services like flat tyre change, battery jump-start, on-the-spot repairs, etc. |
| Emergency Medical Expenses | It pays for emergency medical expenses if the driver or passengers sustain bodily injuries in connection with your insured vehicle during an accident. |
| Electric Surge Secure | It covers repair or replacement costs for electric vehicles and their charging equipment damaged due to electrical surges, arcing, etc., up to the IDV. |
| Vehicle Loan Protector | In the event of the policyholder’s death or permanent total disability, this coverage pays the outstanding vehicle loan amount owed to the financial institution. |
| Reinstate Cover | It allows for reporting and claiming damage to one vehicle panel later, if discovered during another claim, as long as it occurred during the policy period and can be repaired without part replacement. |
| Pay As You Drive | It lets you pay car insurance premiums based on the kilometres you drive, up to a maximum limit specified in your policy. You may also opt for a top-up if you exceed the limit |
Disclaimer: Refer to the policy document for the exact information.
Factors to Consider While Choosing Comprehensive Car Insurance
Several factors must be considered when selecting a comprehensive car insurance plan.
All-round Coverage
During comprehensive car insurance compare, always opt for a provider that offers enhanced coverage against various types of risks, such as flood damage, accidents, and collisions. At TATA AIG, we provide comprehensive protection to our policyholders with our all-around car insurance plan.
Add-ons Availability
Add-ons are another benefit to consider when purchasing a comprehensive car insurance plan. Select a provider that offers a comprehensive list of add-ons specifically designed to meet your vehicle's needs. TATA AIG offers a range of 20+ add-ons, including pay-as-you-drive, roadside assistance, and more.
Claim Settlement Ratio
The claim settlement ratio refers to the percentage of claims that an insurer successfully settles, indicating reliability and customer satisfaction. TATA AIG offers a high claim settlement ratio, ensuring a reliable and smooth claims process.
No Claim Bonus Benefit
Another factor to consider when purchasing a comprehensive car insurance plan is the no-claim bonus benefit. It helps lower car insurance premiums. We at TATA AIG offer a no-claim bonus discount up to 50% for consecutive claim-free years at the time of policy renewal.
Customer Support or Assistance
Reliable customer support is essential when choosing an insurance provider. TATA AIG ensures prompt assistance with claims, inquiries, and roadside emergencies, ensuring you will remain at the top of your four-wheeler insurance coverage.
How to Buy TATA AIG Comprehensive Car Insurance Plan?
To buy a comprehensive car insurance plan from TATA AIG, you need to follow the steps mentioned below.
- Step 1: Visit the official Tata AIG website. Navigate to the “Personal” section and then click on “Car Insurance" under the Motor Insurance section.
- Step 2: Enter your name, contact number, and address for identity verification. Also, provide vehicle information, such as make, model, and registration number, to receive accurate premiums.
- Step 3: Check policy options, coverage limits, deductibles, and premiums. Add extra features or add-ons per your preference.
- Step 4: After choosing a plan, make a payment using a preferred payment gateway, such as a credit or debit card, UPI, or QR code.
- Step 5: Once payment is made, you will receive your insurance documents via email or can download them instantly from the website.
Also Read: How to Convert Third-party To Comprehensive Car Insurance?
How to Calculate Comprehensive Car Insurance Cost?
Calculating the premium for a comprehensive car insurance policy may seem daunting, but fear not, Tata AIG is here to make it a breeze! By breaking it down into manageable steps, we ensure you understand the components of the calculation.
Determine the Insured Declared Value (IDV)
To begin, calculate the IDV of your car by considering the list price and the cost of accessories. Once depreciation for both the vehicle and its accessories is deducted, the IDV is derived.
Assess No Claim Bonus (NCB) and Other Discounts
Refer to the NCB table to determine the NCB discount applicable to the Own Damage component. Additionally, consider any insurer-declared discounts applicable to the car insurance renewal premium.
Calculate Own Damage Premium Using the formula
[Insured Declared Value * Insurer’s Premium Tariff] + [Add-ons] - [NCB discount], calculate the Own Damage premium for your car insurance policy.
Determine Third-Party Cover
Tata AIG's third-party car insurance cover is calculated based on your car's cubic capacity, per the Insurance Regulatory and Development Authority of India (IRDAI) rates. Check the prevailing rates for your engine's cubic capacity.
Evaluate the Total Cost of Add-ons
The add-ons you select will contribute to the premium for your policy. Determine the cost of each add-on or the total cost of all the add-ons combined.
To summarise, the comprehensive car insurance premium is calculated as follows.
[Own Damage Premium] – [No Claim Bonus + Discounts] + [Cost of Add-ons] + [Third Party Premium as Fixed by IRDAI]
Comprehensive Car Insurance Claim Procedure
Filing a claim under your comprehensive car insurance policy is a simple process. Here is how you can do it.
- Step 1: Inform the TATA AIG representative immediately via website, app, or helpline. For theft, file an FIR with the police within 48 hours.
- Step 2: Submit all the required documents, including the vehicle RC, driving license, FIR (if applicable), repair estimates, and any other requested documents.
- Step 3: TATA AIG may arrange for a surveyor to assess the vehicle's damage before approving the claim.
- Step 4: If repairs are done at the network garage, we will settle the bill directly with the garage. For a non-network garage, file a claim and get reimbursed later.
Difference: Comprehensive vs Third Party Car Insurance
| Parameters | Comprehensive Car Insurance | Third-Party Car Insurance |
|---|---|---|
| Coverage | Provides extensive coverage against third-party damages, theft, total loss, natural disasters (e.g., fires, cyclones), and human causes (e.g., riots, vandalism). | Protects against all third-party financial damages, including damage to a third-party vehicle or injuries to or death of a third-party person, and covers legal liabilities due to third-party damage. |
| Add-ons/Riders | Offers 12 different add-on covers to enhance coverage and protect specific damages to the insured four-wheeler. | It cannot be enhanced with add-ons, as it solely protects against third-party financial and legal damages. |
| Cost | More expensive than third-party car insurance due to its broader coverage against various types of damage. | It is less expensive than comprehensive car insurance as it only protects against damages to a third party. |
| Injury to a Third-Party Person | Provides legal and financial protection against injuries to a third-party person caused by the insured car, including coverage for the death of a third-party person. | Offers protection against all third-party damages, including financial and legal liabilities arising from injuries or death of a third-party person due to the insured vehicle. |
| Damage to Third-Party Vehicle/Property | Covers any legal or financial damage to a third-party car or property caused by the insured car. | Covers all legal and financial damages to any third-party vehicle or property caused by the insured four-wheeler. |
| Insurance Policy Customisation | Allows the customisation of coverage to meet individual needs. Customers can compare policies, add add-ons, and obtain suitable car insurance quotes online. | It provides standard coverage based on car insurance rates for the year set by the Insurance Regulatory and Development Authority of India (IRDAI) and the cubic capacity of the engine and the kilowatt power output of the vehicle. the car. |
Also Read: Difference Between Comprehensive and Third-Party Car Insurance
Key Takeaways
Comprehensive car insurance is a crucial insurance coverage for car owners seeking comprehensive protection. Whether you own a high-value car or live in accident-prone zones, a comprehensive car insurance policy keeps your vehicle protected against own-damage and third-party liabilities.
When you are seeking to buy car insurance, TATA AIG offers a customised comprehensive car insurance plan tailored to your needs at an affordable price. With unique add-ons like tyre security, daily allowance, pay-as-you-drive, and more, you have the flexibility to enhance your coverage.
Along with this, our car insurance policy comes with key features such as cashless repair services,
an easy buying and renewing process, and more. So what are you waiting for? Secure your car with our affordable car insurance plan now.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
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