Top #6 Reasons to Buy a Superb Comprehensive Motor Insurance Plan For My Brand New Car

When you are buying a car, be it your first car, or be it a mid-range family car that you need to upgrade your compact car or be it the top range SUV that you ever dreamt of since you purchased your first car a decade ago, it is always a prized possession and you want to protect it at all costs. But the reality is different. There are innumerable chances that your car might get into some unwanted encounter while you are on road and driving and many might be at no fault of you. To protect you financially for those unforeseen situations, you have to look out for the best car insurance policy that will give you the highest protection.

Though every motorist in India mandatorily needs to have a minimum of third party insurance plan by law, the comprehensive coverage is the best car insurance policy that you can have a brand new car. Here are the reasons why a comprehensive plan is the best idea for your vehicle. 

Covers the Costs of Repair – For the brand new car, the cost of any repair is high. In case the car is involved in any accident and you are to blame for this, then the financial burden of its costly repair will be covered by your insurer under comprehensive coverage. And in case of a wreck, if the damage is huge, you will not get any return in case you do not have a comprehensive insurance plan. 

If the vehicle is stolen – Though the vehicles nowadays come with various safety features and anti-theft devices, it is a good idea to get a superb comprehensive plan. The comprehensive insurance policy will come with the coverage for maximum losses in case of theft. Though the compensation will not enable you to buy the brand new car, the coverage will give you the current value of the car at the time of the theft. 

Damage due to Natural and Man-Made Calamities – Comprehensive policy is the best car insurance policy when it comes to unforeseen situations like the natural calamities. These include flood, inundation, storm, hurricane, typhoon, cyclone, tempest, lightning, fire, explosion, hail storm, frost, earth quake, rock slides and landslides. Man-made disasters are also covered under the comprehensive plan. These include burglary, car break-in, malicious acts, riot, strikes, terrorist activity, or some accident from external reasons. These are covered while driving on road or during travel by inland water ways, rail or air. These benefits for calamities are available even when the car is parked or laid in a garage and is not being in active use. 

Personal Accident Cover – The comprehensive policy does not restrict the compensation for the damage to the cars only. During driving, if there is any bodily injury sustained by the driver and co-passengers, the coverage will include the medical treatments for these people. 

Third Party Coverage – So far the points discussed was pertaining to the damage to you and your vehicle. But, another very important aspect is the third party coverage, which is the mandate of Motor Vehicles Act of 1988 in India. Under your superb comprehensive coverage, the third party will be covered in case your vehicle gets involved in some accident or property damage to parties other than you. Third party coverage protects you financially by covering any claims by the third party due to the bodily injury, disability or death and any damage to property of other people that is caused by your vehicle at your fault. At those times of distress, this coverage supports you immensely.

No Claim Bonus – This is the additional benefit you can get in your Comprehensive coverage and major insurance companies have this feature to offer in their product. In case you have made no claim in a particular financial year then you are eligible for ‘No Claim Bonus’ and your insurer will offer you a discount in the next year’s premium payment. This is the reward you can get for a good driving of your brand new car. 

Hence, though comprehensive coverage makes the premium go high, still it is a better idea to have a superb comprehensive coverage that will give you the financial protection as well as the peace of mind against the whole array of possibilities of car damage. Especially for a brand new vehicle, the compensation is worth in case of any eventuality, since it is highly effective in comparison to other coverages and protects from many different hassles.

Source: Top #6 Reasons to Buy a Superb Comprehensive Motor Insurance Plan For My Brand New Car

Do I need a zero depreciation add-on cover?

Zero Depreciation Add-On Cover

Zero depreciation is a kind of additional coverage that is available to car owners at a supplementary premium rate. This is not usually included as part of the regular car insurance plans.

Essentially, when insurance companies deal with a claim, they apply a depreciation rate in order to arrive at the payable amount. Whatever is the difference in worth between the market cost of the required part and the depreciated part is to be taken care of by the owner of the automobile.

Now, with a zero depreciation add-on, the insuring company will be responsible for covering the full price of the part that is needed. For somebody who wants a hassle-free claims process – zero depreciation is one of the most valuable car insurance plans. It is an important add-on if you are a new car owner. This is obviously dependent on your ability to pay a higher premium for this add-on.

Depreciation Rate

Usually, the depreciation rate considered by companies differs with different insurers. Yet, there are some standards according to which this rate is calculated. For example, a few car parts depreciate at a faster rate than others. So the depreciation tends to be more with such parts. Similarly, depreciation rates are calculated for different automobile parts in all car insurance plans. Usually, parts made out of materials such as rubber, plastic and the battery depreciate at a quick pace. Auto-parts such as fiber glass depreciate at a much slower pace.

Zero depreciation is a great add-on as it is a good plan to stop depreciation factor related money loss at times of insurance claim. Regular comprehensive car insurance plans do not take into account damages to parts made of glass, nylon, plastic, fiber etc. This special ass-on other hands will take care of all these parts and any claim that arises for them. The best part about this add-on is the peace of mind that comes free with it, especially for a new car owner.

Other Things to Know

Most car insurance plans only cover new automobile under the zero depreciation add-on. If the automobile you own is older than the insurer’s limit, then there is a fair chance that you will not be able to avail this add-on.

There is a certain kind of fee known as Compulsory Excess that is part of this add-on. Under this, the insured party with zero depreciation add-on needs to make a payment for a compulsory policy excess. This is as the coverage may not always be all-encompassing as some insurers may not cover regular wear and tear of the car.

A detriment with this addon is that there may be a limit to the number of insurance claims that you can file in one calendar year.

In Conclusion

Your car is a machine that is susceptible to all kinds of damage, human or natural. A regular car insurance is a great choice but consider a zero depreciation add-on to be even safer. Care for your vehicle as you should by picking the right car insurance plans.  

Source: Do I need a zero depreciation add-on cover?