by Car insurance is an essential investment for car owners to protect themselves from financial liabilities in case of accidents, theft, or damage to their vehicle. One of the crucial components of a car insurance policy is own damage car insurance, which offers coverage against damages caused to your vehicle due to accidents, theft, fire, or natural calamities. However, it is important to understand whether own-damage car insurance is sufficient coverage for your vehicle or if additional coverage is necessary. Let’s take a closer look:
Inside Contents
What is Own Damage Car Insurance?
Own damage car insurance is a type of car insurance policy that covers damages caused to your vehicle due to accidents, theft, fire, or natural calamities. It is an optional coverage that you can add to your basic third-party liability insurance policy. The policy provides coverage for the repair or replacement cost of your vehicle in case of any damage.
Benefits of Own Damage Car Insurance
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Comprehensive Coverage:
Own damage car insurance offers comprehensive coverage to your vehicle against damages caused by accidents, theft, fire, or natural calamities. It ensures that you are financially protected against any unforeseen events that may cause damage to your car.
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No Claim Bonus:
If you do not make any claims during the policy period, you are entitled to a no-claim bonus. It is a discount offered by insurance companies on the next year’s premium. The discount can range from 20% to 50%, depending on the number of claim-free years and from insurer to insurer.
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Add-on Covers:
You can enhance the coverage of your own damage car insurance policy by adding various add-on covers such as zero depreciation cover, engine protection cover, roadside assistance, and more. These add-ons provide additional protection to your vehicle and ensure complete peace of mind.
Is Own Damage Car Insurance Sufficient Coverage?
When it comes to car insurance, it’s essential to understand the coverage options available and ensure that you have adequate protection for your vehicle. Own damage car insurance is one type of coverage that car owners can opt for, but is it enough on its own? Let’s take a closer look.
What Does Own Damage Car Insurance Cover?
Own damage car insurance covers damages caused to your vehicle in the following scenarios:
- Accidents: This includes damages caused due to collisions with another vehicle, object, or person.
- Theft: This covers the loss or damage to your vehicle due to theft or attempted theft.
- Fire: This covers damages caused to your vehicle due to fire or explosion.
- Natural Calamities: This covers damages caused to your vehicle due to natural disasters such as floods, earthquakes, and landslides.
However, it’s important to note that own damage car insurance only provides coverage for damages caused to your vehicle and not for damages caused to third-party property or person.
What Does Own Damage Car Insurance Not Cover?
While own damage car insurance provides coverage against various damages caused to your vehicle, there are certain situations where it may not provide coverage, such as:
- Intentional Damages: If you intentionally cause damage to your vehicle, own damage car insurance will not provide coverage.
- Driving Under the Influence: If you are driving under the influence of drugs or alcohol and cause damage to your vehicle, own damage car insurance will not provide coverage.
- Wear and Tear: If your vehicle suffers from wear and tear due to aging or regular use, own damage car insurance will not provide coverage.
Is Own Damage Car Insurance Enough on its Own?
While own damage car insurance provides coverage for damages caused to your vehicle, it’s not enough on its own. Here’s why:
- Third-Party Liability: Own damage car insurance only covers damages caused to your vehicle and does not provide any protection for third-party liability. If you are at fault in an accident, you may be liable to pay for damages caused to the third party, including their vehicle or property and medical expenses. A comprehensive car insurance policy that includes both third-party liability and own damage coverage is necessary for complete protection.
- Add-On Covers: While own damage car insurance provides coverage for damages caused to your vehicle, there may be certain situations where you may require additional protection. Add-on covers such as zero depreciation cover, engine protection cover, roadside assistance, and more can provide enhanced coverage to your vehicle and ensure complete peace of mind.
Conclusion
Own damage car insurance is a vital coverage that protects your vehicle from damages caused by accidents, theft, fire, or natural calamities. However, it is not sufficient coverage on its own. A comprehensive car insurance policy that offers both third-party liability and own damage coverage is recommended for complete protection. Buying a car insurance policy online is a convenient and hassle-free way of purchasing insurance. Compare different policies, premiums, and features online before making a purchase.
