Owning a car is not a luxury but more of a necessity nowadays. The evidence of the this is the reports suggesting the growth of India car insurance market at a CAGR of 8.0% between 2022-2028. (Source: Blue Weave Consulting)
However, when purchasing a new car, you are constantly concerned about the additional expenses that accompany it such as the replacement and repair costs if your car gets damaged. This is where a standalone own damage car insurance acts as a shield, protecting you against any such unforeseen expenses. It provides financial support in case your car is damaged in an accident, a theft, a fire, a natural or a man-made disaster, etc. So, let’s find out more about the own damage insurance plan, including its benefits along with other crucial details.
What is a own damage car insurance policy?
A standalone own damage car insurance policy only covers the damages sustained by the car. Any kind of third-party liabilities – the kinds of things you might need a car accident lawyer for – are not covered by this type of insurance.
This policy is only valid for one year and can only be purchased if you already hold a separate third-party liability policy. This signifies that unless the policyholder has already purchased a third-party coverage, the policy is not accessible.
Advantages of own damage car insurance
- Comprehensive coverage: The own damage car insurance policy offers comprehensive coverage as it includes coverage for natural and accidental incidents that could damage your car. Your car might need expensive repairs if it is damaged. These costs can put a significant strain on your finances. On the other hand, if you possess your own damage insurance cover, the repair expenses are covered by the insurance company, providing you with financial comfort.
- Add-on benefits: You can include various add-on covers under your own damage insurance that serve to broaden the extent of coverage. Benefits such as zero dep cover, roadside assistance, no claim bonus cover, etc. greatly broaden your coverage, strengthening the claim pay-out.
- Protection against theft: There is a significant financial loss when a car is stolen. Own damage insurance provides you with financial stability and reimbursement to buy a new car in exchange for covering such financial loss.
- Additional benefits: You can enjoy premium discounts under your own damage car insurance. By not filing any claims within the tenure of your policy, you can get a savings of up to 50% as NCB.Additionally, there are discounts available for installing safety devices to the vehicle, for choosing voluntary deductibles, becoming a member of an automobile association, etc.
Who is eligible to purchase an own damage car insurance policy?
Any person owning a vehicle can purchase an own damage cover. The coverage can be obtained through a comprehensive policy that also includes third-party liability coverage. Nonetheless, if you merely want a standalone OD policy, you must first obtain a third-party coverage before being eligible to get the plan. Additionally, if you can furnish the proof of a valid third-party coverage, you can opt for a standalone own damage policy.
Who should purchase an own damage insurance policy?
An own damage car insurance policy is a perfect fir for all the car owners as it offers a wider range of coverage. The policy covers losses incurred by the car as a result of calamities, whether they are man-made or natural. Additionally, if your car gets stolen, the insurance provider will also provide monetary support to make up for the financial loss brought on by the theft.
Since the repair costs are strikingly high and the likelihood of theft leads to significant financial loss, the own damage cover is an ideal solution for everyone.
On the other hand, if you do not use your vehicle much or if it is really old, you can skip your own damage plan. In that scenario, you can simply choose a basic plan, also be known as a third-party plan.
You should be aware of the numerous factors that influence the cost of premium for standalone own damage car insurance:
- Market value of the car: One of the determining variables in determining the premium for an own-damage auto insurance policy is the car’s current market value.
- The displacement of the car: To put it another way, displacement is another name for a car’s cubic capacity. It is directly related to the vehicle’s speed. Therefore, the danger will increase as the cc increases, which causes the amount of the premium to increase as well.
- Model of the car: The model of the car is taken into consideration while determining the own-damage insurance plan’s premium. If the car is expensive, its insurance premium will also be more.
- The age of the vehicle: The value of older vehicles tends to decline. Therefore, while determining the premium, your car’s age also acts as an integral factor. Simply put, if the car is older, the damage premium will be lower.
- No-claim bonus: The no-claims bonus percentage will assist you in lowering your standalone own damage car insurance premium if you do not file any claims during the course of the policy. You can receive a premium discount of up to 50% with NCB.
Own damage car insurance policy is a fantastic choice that furnishes complete financial protection for your precious car. Not only is it more affordable and convenient to obtain but it also provides a sufficient level of coverage. Therefore, choose to receive complete immunity against any unforeseen financial circumstances with your own damage insurance coverage by your side.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
