Choosing the right insurance policy for your four-wheeler ensures peace of mind and protects financial assets. If you are deciding between basic and comprehensive car insurance coverage, there are various aspects that must be taken into consideration.
In this blog, we will help you understand the key differences between the two and make an informed decision.
What is Basic Car Insurance Coverage?
Basic coverage is often referred to as third-party insurance. In India, every motor vehicle owner must have at least long-term third-party car insurance. A third-party insurance policy covers damages and. injuries caused by the insured four-wheeler to a third-party property or person.
Third-party coverage is the cheapest basic car insurance, and it provides coverage against any legal liability arising from injuries to a third party caused by the insured vehicle. It is best suited for individuals who are looking for an affordable option, use their car infrequently or live in areas with mild weather conditions and low crime.
What is a Comprehensive Insurance Coverage?
Comprehensive insurance is an extensive four-wheeler insurance plan that covers a range of accidents and incidents beyond collisions. It is a combination of own-damage insurance and third-party insurance.
Comprehensive car insurance covers damages sustained by the insured four-wheeler due to vandalism, theft, fire, accidents, or natural and manmade calamities. Additionally, it covers accidental physical injuries caused to another person or third-party property damages because of the insured four-wheeler.
The best comprehensive car insurance coverage can also be enhanced by opting for add-on covers, such as zero or nil depreciation cover, engine protector, consumables cover and more.
Key Differences Between a Comprehensive and a Basic Car Insurance Plan
| Aspects | Comprehensive Car Insurance Coverage | Basic Car Insurance Coverage |
| Legality | It is not mandatory according to the Motor Laws in India. | To legally drive on Indian roads, it is mandatory to buy this policy coverage. |
|
Coverage |
Compensates for damages sustained by the insured four-wheeler due to unforeseen incidents along with third-party liabilities. | It covers damages and losses caused to third-party property, vehicles, or persons due to the insured four-wheeler. |
|
Benefits |
It protects both damages to the insured car and to a third party. Additionally, an NCB or No Claim Bonus is available at the time of policy renewal. | Offers financial and legal coverage if you accidentally cause damage to a vehicle on the road, property or third-party person. |
| Limitations | It is more expensive compared to a basic car insurance policy. | Does not provide coverage for damages or losses sustained by the insured four-wheeler. |
| Customisation | Allows you to enhance your coverage by opting for add-ons such as Zero Dep, NCB Protect, etc. | Allows no scope for customisation. |
Tips to Make the Right Choice
The pros and cons of these policies depend on several factors. Before purchasing a car policy, consider the following factors to make a wise decision.
- Consider the value of your four-wheeler and your insurance budget constraints.
- Review the car insurance coverage requirements in your area.
- Compare deductibles and premiums for both basic and comprehensive car insurance.
- Evaluate your driving habits and risk tolerance.
- Factor in additional benefits provided by comprehensive car insurance.
To Wrap It Up
Whether you plan to buy the best comprehensive car insurance or basic car insurance coverage, it must align with your specific requirements, financial situation and driving environment. Carefully weigh the advantages and disadvantages of both and make an informed decision.
