What are the Things That an Own Damage Insurance Policy Covers?

When purchasing your car insurance policy, you are presented with an option to either purchase a third-party liability cover or your own damage insurance policy for the vehicle. When seeking financial protection against losses sustained by you personally or to the vehicle, you are likely to purchase your own damage cover only.

If you are not yet well-informed about what this type of policy comprises, below given is a detailed description of what an own damaged car cover comprises and what benefits it provides. While the types of coverage under this plan may be the same, the extent of benefits available under such coverage varies. As such, you must compare car insurance online for available own damage coverage benefits before finalising the policy to purchase. Now, let’s take a better look at what this type of car insurance policy comprises.

What is an Own Damage Insurance Policy for Cars?

Own damage insurance refers to a major type of motor insurance policy that provides coverage for damages that the insured car suffers due to various reasons. These reasons can either relate to the like of man-made events such as accidents, thefts and riots, or even natural calamities like earthquakes.

Various motor insurance providers offer their own damage cover to car owners, expanding the financial cushion the latter can enjoy in case of liabilities arising out of damages sustained by the vehicle. However, a car owner can only purchase their own damage car insurance for their vehicle if they have already covered it with a mandatory third-party liability cover.

Alternatively, one can also purchase their own damage cover along with a third-party liability cover for their car under comprehensive car coverage. Some insurers also provide these policies bundled together but with different coverage terms, like an own damage cover for a year plus a third party liability cover for 3 years.

A List of Covers Available Under Own Damage Car Insurance Policies

The common coverage benefits you can avail of under your own damage insurance policy for your car include the following.

1. Damages the insured car sustains due to an accident: In case your vehicle sustains damages leading to repair and replacement receipts, you can claim such expenses under your own car coverage plan.
   
   
2. Compensation in case of car theft: Theft of the insured vehicle can lead to heavy financial losses for the policyholder, which an own car insurance policy can compensate for.
   
   
3. Losses to the vehicle due to fire: If there has been a fire or any other human-made calamity like a riot leading to damage or loss to the vehicle, such damages are also covered under these policies.
   
   
4. Loss due to natural calamities: Various natural calamities like earthquakes, landslides, cyclones, floods, etc. can also lead to damage to your car, which is usually covered under the policy.
   
   
5. Damages the car sustains when being transported: Some own damage insurance plans for cars also provide financial compensation for damages the vehicle may sustain while being transported.
   
   
6. Compensation in case the insured car is damaged beyond repair: When buying the policy, you can also look for coverage benefits that provide compensation in case of the total loss of the vehicle too due to damages sustained beyond repair.
   
   

These are the overall comprehensive financial protections offered under own damage insurance for cars and help keep your peace of mind even when the vehicle sustains damages or is lost. However, it can always be beneficial to replace a standalone own damage cover with a car insurance policy that provides much more than this. Some best comprehensive plans also come with personal accident cover, providing financial compensation in case of unfortunate death or disability of the policyholder due to an accident where the insured vehicle is involved.

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Created on Jul 12th 2023 10:31. Viewed 125 times.

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