A comprehensive car insurance policy gives complete financial security to you, covering repair or replacement expenses for your car. It offers coverage for damages caused to the insured car as well as to the third party. This is an optional insurance policy but a smarter choice to stay financially prepared at the time of need.
Most vehicle owners buy third-party car insurance policies as it is mandatory by law and cheaper. But it provides coverage only for third-party liabilities.
Third-party four-wheeler insurance policy does not cover damages caused to the policyholder’s vehicle. A comprehensive car insurance policy gives you full financial backup in case of any mishap. Although it is an optional insurance policy, buying a comprehensive car insurance policy can be a wise decision.
Read on to know more about the various features and benefits of comprehensive four-wheeler insurance policies.
Key features of a comprehensive four-wheeler insurance policy
Below are the common features offered on comprehensive car insurance policies.
Own damage cover
You can claim the repair or replacement costs for damages caused to your insured car. This covers damages caused due to accidents or natural calamities. For example, damages caused in earthquakes, floods or fires or self-ignition. Also, man-made activities like riots, strikes, theft, etc. The insurer will pay off up to the sum insured on your policy document.
Third-party liability cover
Suppose your car meets with an accident that results in damage to a third party’s vehicle or property or causing them any physical injury. Comprehensive car insurance covers expenses incurred for third-party liabilities. The insurer will compensate the amount up to the sum insured in your policy document.
Personal accident cover
Comprehensive car insurance policies also offer personal accident cover up to Rs. 15 lakh to the owner-driver. It also extends coverage to the co-passengers up to the sum insured, in case of accidental death or disability in the policy.
Benefits of buying a comprehensive car insurance policy
Here is why buying a comprehensive car insurance policy can be beneficial.
All-inclusive policy at affordable premiums
As mentioned above, comprehensive car insurance policies are all-inclusive policies. These policies come at reasonable prices. The premiums differ from policy to policy and depend on the insurer you choose.
Bajaj Finance along with leading insurance companies in India offers a range of comprehensive car insurance policies at pocket-friendly premiums. Visit the fully digital Bajaj Finance Insurance Mall to compare and buy the policies from the comfort of your home.
No Claim Bonus (NCB)
Most insurers offer a No Claim Bonus to the policyholder for single or multiple claim-free years. You get this bonus as a discount on the premium during the renewal of the policy. You can get up to 50% discount based on the number of claim-free years you had. It is basically a reward given to the policyholder for driving safely.
Have a quick look at the table to know the different ranges of discounts offered.
Number of claim-free years |
NCB discount percentage |
First year |
20% |
Second year |
25% |
Third year |
35% |
Fourth year |
45% |
After the fifth year |
50% |
Option to avail of add-on covers
Comprehensive car insurance policies give you the flexibility to customise your policy with add-on covers, ensuring you get additional coverage. These add-on covers come at a nominal price additional to the premium.
Here are some of the most common add-ons covers offered by motor insurance companies:
Consumable cover
Covers the repairing expenses of the coolant, washers, and engine oil of the insured car.
No Claim Bonus (NCB) protection
This helps you retain the NCB even if you have raised one claim in the policy year. You can still benefit from the NCB during the renewal.
Roadside assistance cover
In case your car breaks down in the middle of the road, you can avail of the 24x7 roadside assistance offered through this cover.
Zero depreciation cover
Insurers deduct the depreciating value of the parts or the car while settling the claim. This cover helps you get the entire claim amount without any deduction. It is only available for cars that are less than five years old.
Passenger cover
This is a personal accident cover for the passengers present in your car during an accident. It gives coverage to them in case of accidental death or disability.
Key replacement cover
Covers the cost of replacing the keys of your insured car if lost or damaged.
Gearbox and engine protection
This covers the expense of repairing or replacing the engine and gearbox of the insured car.
Return-to-invoice cover
Ensures that the insured declared value is equal to the car's invoice price when calculating total loss or damage. Usually, insurers consider the vehicle's existing value in the market. This cover is ideal for new car buyers.
Inclusions of comprehensive four-wheeler insurance policy
Know the common inclusions under a comprehensive car insurance policy:
Damage caused by fire
In case an individual's car meets with a fire accident, this motor insurance plan will compensate for the damages or loss incurred against it.
Vandalism
If the car faces severe damage due to vandalism, this policy will cover the expenses for the incurred losses and repairs.
Car theft
If the insured four-wheeler gets stolen, the motor insurance company will compensate up to the sum insured on the policy.
Damages due to natural calamity
In case any natural calamity, such as an earthquake or flood damages the car completely or partially, the insurance provider will cover the expenses for the losses or damages incurred.
Damages caused due to man-made activity
A comprehensive car insurance plan will cover expenses for the damages or losses caused due to man-made hazards, including strikes or riots.
Exclusions of comprehensive four-wheeler insurance policy
Here are some of the necessary exclusions that intending policy buyers must know before purchasing a comprehensive car insurance policy:
Mechanical and electrical breakdowns
Damages caused due to mechanical or electrical breakdown are not covered under comprehensive car insurance policies.
Drunk driving
If the owner/ driver is under the influence of alcohol while driving the insured vehicle, any loss or damage incurred is not covered under the policy.
Owner’s negligence
The comprehensive four-wheeler insurance policy does not cover any loss or damage caused to the insured car due to any negligence by the policyholder.
Depreciation
Every vehicle's value depreciates with time, and the insurance policy does not cover such depreciation unless you have an add-on cover.
Non-accidental damages to tyre/ tube
This insurance policy does not cover expenses for the loss or damage to the tube or tyre of the insured vehicle that does not result from a car accident.
Normal wear and tear
If the insured vehicle suffers from loss or damages due to regular wear and tear, the policyholder must pay the expenses from their pocket.
Driving without a licence
The insurer will not compensate for any damages or losses caused to the car if the driver is caught driving without a certified driving licence.
How to buy a comprehensive car insurance policy
Follow the below steps to buy a comprehensive car insurance policy on Bajaj Finance Insurance Mall.
Step 1: Click on the 'Get Quote’ button on this page to visit the online application form.
Step 2: Enter the vehicle type, car registration number, mobile number, and residential pin code. Check the terms and conditions and click on the ‘Get Quote’ button below.
Step 3: Choose the IDV, NCB value, add-on covers, and plan type to get a list of relevant car insurance policies. You need to update your current policy expiry date here.
Step 4: Choose the comprehensive car insurance policy by clicking on the ‘Buy Now’ button. You will need to add owner-driver personal accident cover mandated by the RTO. Click ‘Next’ to proceed.
Step 5: Confirm the vehicle registration date and the previous policy type (Comprehensive/third-party). Click on ‘Proceed’.
Step 6: Enter the vehicle owner’s name, date of birth, residential address, and contact number. Also, enter the vehicle engine and chassis number (as per the RC) and previous policy details
Step 7: Review your previously filled details and make the payment through your preferred online payment mode – net banking, UPI, credit/debit card to buy the policy.
After successful payment, your policy document will be available for you to download instantly. A copy of the policy document will also be mailed to your registered email ID within 5-7 working days.
You will also receive an SMS confirmation immediately after the payment process is completed. You can also access your policy details through the My Account section within 5-7 days after purchase.
Below are policies available on Bajaj Finance Insurance Mall.
Comprehensive car insurance |
|||||
Car insurance company |
Network garages |
Third-party cover |
Personal accident cover |
Claim settlement ratio |
Starting premium |
- |
Yes |
15 lakh |
95.45% |
Rs. 2,762* |
|
6,500+ |
Yes |
15 lakh |
98% |
Rs. 3,031* |
|
6,600+ |
Yes |
15 lakh |
92% |
Rs. 3,043* |
|
Factors that determine the comprehensive four-wheeler insurance premium
Below are the commonly considered parameters by the insurance companies to evaluate the comprehensive car insurance premium.
Insured declared value (IDV) of the car
The insurer offers a maximum claim amount of up to the car’s IDV in case of total loss or theft. Hence, it is one of the parameters to evaluate car insurance premiums. The insurance premium is directly proportional to the car's insured declared value. You can simply subtract the accumulated depreciation amount and the cost of accessories to compute the IDV.
No Claim Bonus
This is usually considered if you are renewing the car insurance policy. You can avail of this bonus to get up to 50% discount on the premium, depending on the number of claim-free years you had.
Security device installed in the car
If you have installed an ARAI-approved anti-theft device in your car, you can get a discount on the car insurance premium. As it denotes, you have ensured full security of your vehicle.
Vehicle cubic capacity (CC)
Cubic Capacity (CC) defines the performance of the car and the total power output of the engine. Hence, your car’s CC is also considered while calculating the car insurance premium.
Add-on covers
Add-on covers are offered at an additional price on the car insurance premium. This increases the premium value. Therefore, policyholders need to consider the cost of each add-on cover to estimate the total insurance premium.
Now that you have read about the all-inclusive comprehensive car insurance policy, you can purchase a suitable policy per your requirements and affordability. To sum it up, having a valid four-wheeler insurance policy is imperative.
