When it comes to owning a car, you want to make sure that you are covered in the event of damage to your vehicle or other people's liabilities. Third-party liability is only covered by standard third-party insurance.
Other types of policies, such as Own Damage (OD) or Comprehensive insurance, may be used to supplement the vehicle coverage. This article explains the differences between Comprehensive and Own Damage insurance.
Own Damage Insurance
This coverage is ideal for customers who just have a Third Party Liability policy and do not wish to upgrade to a comprehensive one. Because third-party insurance only covers damage to a third-party, person, or property, not your car, it is not good to get it.
In the event of natural or man-made threats, such as theft, fire, natural disasters, etc., this car insurance coverage provides a little more security for your car. One of the benefits of purchasing Own Damage insurance is that it does not need to be combined with your ordinary Third Party policy.
The following are some of the policy's features and benefits:
In the case of damage, it protects your car.
In addition to your usual Third Party Liability insurance, you may buy this as a stand-alone policy.
The No Claim Bonus is included in this plan.
Covers you in the case of theft, fire, car accidents, natural disasters, and man-made hazards.
Comprehensive coverage has a higher premium.
Who needs Own Damage insurance and when?
If you currently have a Third-Party Liability insurance policy in place, purchasing Own Damage insurance individually rather than a Comprehensive plan may be a better option. In a word, OD insurance protects your automobile against damage, theft, and loss, whereas Comprehensive insurance combines OD protection with third-party liability coverage.
Comprehensive Car Insurance
Comprehensive car insurance is the only option if you want comprehensive coverage. This insurance provides comprehensive coverage for you and your car, including all of the advantages of the Own Damage and Third Party Liability plans, as well as reimbursement for personal accidents, damage during transport, and so on.
In spite of the fact that Comprehensive insurance is more costly than a typical Third Party Liability or Own Damage policy, it provides you with additional advantages and coverage, which might actually be so much more cost-effective in the long term.
Look at the following features and benefits of this policy:
It provides additional protection for your car.
Third-party liability and personal injury are also covered.
No Claim Bonus is included.
Covers you against theft, fire, road accidents, natural disasters, man-made dangers, and damage while in transit.
In the case of a personal injury, disability, or death, compensation is available.
Who needs comprehensive insurance and when?
At the time of policy renewal, comprehensive auto insurance will be a great upgrade from third-party insurance. Every person who needs financial protection for damage to their vehicle or losses sustained by the vehicle, separate from third-party liability, should consider this coverage. It saves time and effort by avoiding the trouble of purchasing multiple coverages individually. Choose a plan that fits your budget and requirements for car insurance renewal online, and thoroughly study the policy details.
What is the difference between Own Damage and Comprehensive Insurance?
The coverage that OD and Comprehensive insurance providers is the most significant distinction. An OD policy protects the insured vehicle against damage, loss, and theft, among other things. It does not, however, cover third-party liability.
On the other hand, a comprehensive policy incorporates both Third-party Liability and Your Own Damage coverages into one package. As a result, it protects your car against damages, loss, or theft, as well as third-party liability.
Final Thoughts
To assist you in deciding which kind of auto insurance coverage is best for you, we've created a complete comparison chart that lists all of the advantages of both policies.
Read More:- What is the Cost of Third Party Car Insurance in India?
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