Why Basic Car Insurance Isn’t Enough Anymore?

There are times when the path ahead is deceiving. Things like other drivers’ lack of attention, sudden changes in the weather, poorly maintained roads, and unexpected natural disasters are just a few examples of many things that can go wrong on the road. While basic car insurance may appear to be more than enough at first glance, it often falls short in today’s fast-paced world when it comes to providing the necessary financial and emotional security.

Huge changes have occurred in the car industry over the past several years. Vehicle complexity, service cost, and road hazards have all increased exponentially in the recent decade because of this, and an increasing number of motorists are looking for comprehensive policies that go beyond me or car insurance; they are looking for more convenient options for car insurance online.  The article gives you a clear idea as to why comprehensive car insurance is the way to go.

Types of Car Insurance Online

There are four types of car insurance you can access for your vehicle :

Type	Details	Users	Coverage
Comprehensive Car Insurance	It can be taken for one or three years. Covers from own damage and third-party liabilities.	Meant for car lovers seeking all-around protection.	Accidents, natural disasters, third-party coverage, theft, personal accidental cover, and choice of add-on riders like no claim benefits, zero depreciation, etc.
Third-Party Car Insurance	Covers damages to third-party property and person only. It is a mandatory cover as laid down by the Motor Vehicles Act 1988. It has the base offering you need to use your car.	Suitable for those who use a car occasionally.	Personal accident cover, third party property damage, and injury to a third party person.
Standalone Own Damage Cover	It can be added to third-party coverage for protection of your car from accidents, theft, etc.	Meant for those who already have a third-party cover and want to extend the coverage.	Accidents, natural calamities, fire, theft, and the choice of riders.
Cover for a Brand new Car.	For a new car, comprehensive policies can be bought for a year and third-party policies for three consecutive years.	Suitable for car owners who want all-around protection from day one.	Accident, accidental coverage, natural calamities, theft, third-party liability, rider choices.

Understanding The Exclusions in A Standard Auto Insurance Policy

Motorists are required by law to have at least the bare minimum of liability insurance in several Nations, including India. It covers injuries or damages to other persons caused by the insured vehicle and satisfies your obligation under the Motor Vehicles Act 1988. However, it does not hold good for the overall protection of your car.

A typical coverage includes :

Third-party bodily injury: This is compensation paid for injury or death caused to another person in an accident involving your vehicle

Third party property damage: This covers damages to someone else’s property, like another car, a wall or a shop front

What it does not cover is where the car owners face the biggest financial hit :

• Damages done to your car due to an accident
• Loss of the car due to theft
• Damages caused to your car by natural disasters like floods, earthquakes fires.
• Damages caused due to man-made hazards like riots and vandalism.

With the rising cost of spare parts and labour charges, the gap between what is covered under the basic policy and the actual requirement is wider than before and needs to be re-examined.

Why Comprehensive Protection Is a Necessity?

The argument for enhanced coverage goes beyond just ticking boxes for compliance. Here is why settling for a basic policy is riskier both financially and emotionally:

1. High repair cost: Sensors, electrical components, touch screen for infotainment and advanced driver assistance systems (ADAS) have become standard in today’s vehicles. Even a minor fender bender can result in a hefty repair bill running into thousands.
2. Rising incidence of road accidents:  urban congestion, aggressive driving behaviour and distracted driving due to mobile phones have led to an increase in minor and major accidents. A policy that protects only the other party does not secure your interest.
3.  Frequency of natural disaster:  thanks to Global Warming, flooding in urban areas, cyclones and landslides have become disturbingly common. A basic policy leaves you exposed to these risks, whereas a comprehensive one ensures you are financially protected from all.
4.  The risks of theft: High-value cars like SUVs and luxury sedans are a prime target for theft.  Even budget hatchbacks are not immune. Recovering from such a loss without proper insurance can be devastating for your savings.

Let’s Make A Smarter Choice

A comprehensive car insurance policy goes far beyond the scope of a basic plan.  It includes:

1. Third-party liability coverage, which is mandatory by law
2.  on damage cover for your vehicle
3.  coverage for both man-made and natural disasters
4.  protection against theft
5.  personal accident coverage for your safety

Buying car insurance online makes opting for comprehensive coverage easier than ever, allowing you to compare features, prices, and add-ons instantly.

The Role Of Add-ons In Making Coverage Truly Comprehensive

One of the biggest advantages of upgrading the basic coverage is the ability to customise your policy with add-ons. These optional covers enhance the scope of your insurance, ensuring you get the maximum value when you need to make a claim. Some key add-ons include:

1. Zero depreciation car insurance: Depreciation is the reduction in your car’s value over time due to wear and tear. In a standard claim settlement, the insurer deducts depreciation charges from the reimbursement amount, meaning you have to pay a significant portion from your pocket.

Zero depreciation car insurance means your insurer covers the entire cost of replacing damaged parts—no deductions for wear and tear, no value drop drama. This is particularly beneficial for new cars or vehicles with high-value parts. For instance, if your Car Bumper needs replacement after an accident, a standard policy will consider and deduct  50% depreciation on plastic parts, leaving you to pay for the rest. With zero depreciation car insurance coverage, you get 100% of the approved repair cost.

2. Engine protection cover: Catastrophic engine damage can be caused by floods and waterlogging, which the basic or even standard comprehensive policies may not fully cover. Hence, an add-on for engine protection ensures that the repair and replacement of engine costs are fully reimbursed.

3. Roadside assistant: Breakdowns can happen anytime, anywhere. This gives you peace of mind by providing towing, fuel delivery, flat tyre changes and other emergency services.

4. Consummables cover: Covers the cost of items like nuts, bolts, engine oil, brake fluid and lubricant, which are often excluded in regular claim settlements.

How to Choose The Right One For Your Car?

Choosing the right policy depends on a mix of factors, for example, your car’s age, frequency of usage, area you live in and your risk appetite. Here is a simple checklist:

Evaluate your car’s age and value, and go for zero depreciation and return to invoice add-ons accordingly.

 If you are a frequent driver in urban traffic, add-ons like roadside assistance and engine protection are a must.

If you reside in a flood or earthquake-prone area, take comprehensive coverage with relevant add-ons to save your vehicle and engine.

 Last but not least, compare quotes on online platforms, check inclusions and exclusions and the claim settlement ratios and reputation of the provider before investing.

Conclusion: A Changing Landscape

Your car is more than just a mode of transport; it is a significant financial and emotional investment.  While basic insurance coverage keeps you on the right side of the law, it does not guarantee financial and emotional safety at an unexpected turn. By choosing comprehensive coverage with essential add-ons and leveraging the is of buying insurance online, you can equip yourself with robust protection that goes a long way.

The right car insurance is not just about meeting legal requirements; it is about safeguarding your journey every mile of the way.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.