A comprehensive car insurance plan is a package policy that offers coverage for the loss and damage sustained by both parties involved in the accident/mishap. It includes comprehensive insurance coverage for the damages incurred by the insured vehicle/car as well as third-party liabilities. It is an all-inclusive comprehensive insurance coverage plan.
Policyholders can enhance the coverage of a comprehensive policy with the help of a number of add-on covers such as zero depreciation cover, NCB cover, Bi-fuel kit cover etc., which are available with it. Although a comprehensive car insurance policy is not mandatory by law unlike a third party only car insurance policy, it is nonetheless recommended.
The key features of a comprehensive car insurance policy are listed below:
Get comprehensive car insurance online today. Don't forget to explore the following advantages of buying a comprehensive car insurance policy.
Even if you hold a comprehensive car insurance policy, here are some coverage which will not be covered under the plan:
Below given are the differences between the Comprehensive Insurance Coverage and Third Party Insurance Coverage:
Feature |
Comprehensive Car Insurance |
Third Party Car Insurance |
Coverage |
Comprehensive insurance policies offer compensation for damage caused to the insured vehicle as well as the injury/death of a third party. It also offers coverage up to a maximum cap of Rs 7.5 lakh in case of third-party property damage. |
The third-party car insurance plan offers compensation for the injury/death of a third party (as decided by a court of law) and third-party property damage (up to Rs 7.5 lakh). |
Add-ons |
A number of add-on covers such as Zero Depreciation Cover, Consumables Cover, etc. are offered along with comprehensive car insurance policies against an extra premium. |
No such add-on covers are available for purchase with third-party policies. |
Cost |
Comprehensive plans are comparatively costlier due to extensive coverage. |
Third-Party policies are compared cheaper to comprehensive policies due to their limited coverage. |
Here are the benefits of purchasing a comprehensive car insurance plan:
1. Highest Level of Protection: Car insurance adds a layer of protection for both the policyholder and his/her vehicle. It does this by compensating for any losses due to a mishap and thus giving financial stability and peace of mind in such times of crisis.
2. Covers Liabilities: In case of a mishap where the policyholder is at fault, he/she will require third-party insurance to cover the costs. This type of cover is compulsory. With a comprehensive cover, third party liabilities are taken care of.
3. Own-Damage: In the event of a mishap the insurance will also cover the cost of the vehicle's damage. This includes damage caused due to natural or manmade calamities, vandalism, accidents and theft.
4. Single Premium: The biggest advantage of a comprehensive plan is the coverage it provides for both third party liabilities and own-damage under a single premium making it the most hassle-free way to remain insured.
5. Add-ons and NCB: With a comprehensive cover you can purchase add-on covers to further strengthen the policy. Additionally, you can also receive an NCB for claim-free years on the own-damage cover within the plan.
Apart from providing comprehensive insurance coverage, another advantage of comprehensive car insurance is that it offers various add-on covers with the policy. The add-on covers provided by the comprehensive policy will help you enhance the coverage of your policy. For example, if you opt for a roadside assistance add-on cover with your comprehensive car insurance policy, you will be provided with 24x7 assistance in a situation where your car breaks down in the middle of the way. If you own this add-on cover, the insurance company will provide you assistance in different ways such as towing the car, arranging a mechanic, arrangement of alternative vehicles, delivering fuel, managing a hotel stay, and so on.
Comprehensive plans have higher premiums than third party insurance. This is because the comprehensive plan includes an own-damage cover and thus provides much wider coverage. Additionally, the No Claim Bonus or NCB is offered on the own-damage cover within the plan. The NCB is a reward given by the insurance provider to the policyholder for a claim-free year. It is accumulative in nature and goes up to 50% in the 5th consecutive claim-free year. The following chart explains how the NCB is calculated:
Number of Claim Free Years |
NCB Percentage |
1st Year |
20% |
2nd Year |
25% |
3rd Year |
35% |
4th Year |
45% |
5th Year |
50% |
The following steps will help you to buy a comprehensive insurance policy from InsuranceBox
Step 1: Visit our website InsuranceBox
Step 2: In the ‘Get Your Quote' section provide your car registration number or other details such as its make model and year of registration. Then select ‘proceed'.
Step 3: Enter your personal details, i.e., your name and mobile number and all the quotes for comprehensive car insurance plans will be visible on your screen.
Step 4: Compare the quotes and select the policy that suits your needs and price point.
Step 5: Make the payment for the policy of your choice and the policy document will be sent to your registered email ID.
When it comes to finding the best way to compute the premium of a comprehensive car insurance policy, the premium calculator is considered the best option. A premium calculator is an online tool designed to help you know the correct premium for your car. By entering correct and accurate car details such as car's make, model and variant, manufacturing year, registration date, RTO location, etc., along with the status of your No Claim Bonus (NCB), you can easily find customised results from this calculator. If you know the right amount of premium for your car, it can assist you to opt for the most suitable premium quote as per your needs and budget.
However, you can also follow a simple formula to calculate the premium amount of your car insurance policy which is given below:
Own Damage Premium – (No Claim Bonus + Discounts) + Cost of Add-ons + Third Party Premium as Fixed by the IRDAI = Comprehensive Car Insurance Premium
The premium of a comprehensive car insurance policy is highly affected by the following factors:
When you know the components that affect the premium of your car insurance policy, it becomes easier to cut Comprehensive Car Insurance Costs. Here are the ways to reduces your premium:
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