Why Get Own Damage Cover Car Insurance in 2021

It is very useful to have your own damage in your car insurance. That’s because it safeguards insured vehicles from various damages. Own damage cover is also known as collision insurance and self-damage insurance. This type of car insurance covers theft, accidents and total loss.

When driving in India, it is necessary to have the basic level of car insurance. This is called third-party liability insurance as well. Having a damage cover is not mandated under the Indian law, it can be useful.

Here’s why you should get your Own Damage Cover

 When buying car insurance: you have two choices. These are:

1. Limited cover plan

2. Extensive cover plan

The limited cover plan is what is known as a liability-only plan or third-party insurance. One of the biggest downsides of owning this is that it does not offer damage protection for the car. It just protects the vehicle’s owner from legal liabilities in case he or she gets involved in an accident. It covers death, property damage and third-party injuries.

The comprehensive car insurance, on the other have, offers these two coverages:

1. Third-party liability coverage: This is similar to t coverage of a standalone liability-only plan.

2. Own damage cover: This is the one that protects your vehicle from accidental damages, theft and vandalism, in-transit damages, natural calamities, man-made disasters, personal accident cover for driver or owner.

3. Add-ons: You can boost your basic car insurance with adding these packages.

As you can see, there are many benefits of getting comprehensive car insurance, although it is more expensive.

How are premiums for damage cover determined?

The process or determining the premium for third-party liability insurance is simple. IRDA or the Insurance Regulatory and Development Authority of India provide fixed rates for third-party liability premium on a yearly basis. These depend on the insured car’s engine capacity. There are no variables.

It is more complicated to cover your own damage cover’s premium. The premium here is based on several factors such as:

1. Car owner’s age and profession

2. Vehicle’s age of registration

3. Insured Declared Value and age of vehicle

4. Installed safety equipments

5. Owner’s membership in known automobile associations country-wide

6. Discounts the owner or driver is eligible for

7. Add-on covers chosen

8. Voluntary deductibles opted or

All this is taken into account and to this is added the third-party liability premium to get to the quote.

How much protection is given by Own Damage Cover?

In the event of own damage, the insurance company pays you an amount that depends on your car’s IDF, deductibles chosen, and model and make of car. 

What are the documents you’ll need to fill out an Own Damage Claim?

These are:

1. FIR from the nearest police station in case of theft or accidental death of the involved party

2. Copy of car’s insurance policy

3. Car’s registration certificate

4. Copy of driver’s driving license

5. Bills provided when the car was repaired in case of reimbursement claim

6. Photos of the accident spot

To conclude, other than giving third-party liability coverage, a comprehensive car insurance plan takes care of the vehicle as well as the owner. Thus, if you are not on a budget, it is very useful to get.