Know About Full Coverage Car Insurance
You must have read or heard about the term 'Full Coverage Car Insurance’ while looking for an insurance policy for your four-wheeler.
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What Does Full Coverage Car Insurance Mean?
Full coverage car insurance is another term for comprehensive car insurance. This car insurance policy offers compensation in case of third party liabilities and own damages caused to the insured car.
Third-Party liabilities include death or disability of the third person and third-party property damage. Own damage coverage includes damages or losses arising from unfortunate events like accidents, natural calamities, theft, fire, manmade acts, etc. Thus, a full coverage auto insurance includes both these types of coverage for your car.
So, while buying car insurance, if you come across this term, keep in mind that it's a comprehensive insurance policy only and nothing else.
Difference Between Partial and Full Coverage Car Insurance
There are two types of car insurance coverage that insurance companies provide. Partial car insurance coverage and full coverage car insurance. Partial car policy is commonly known as third party liability insurance whereas full cover insurance is comprehensive car insurance coverage. A partial cover is less expensive than a full car insurance coverage.
In the table below, you will understand the difference between partial and full car insurance coverage.
|
Partial Car Insurance |
Full Car Insurance |
| About Insurance Policy |
Partial car insurance is a standard and mandatory insurance plan. It provides cover for third-party liabilities. |
A full car insurance policy is a comprehensive plan. It provides all-around coverage to the policyholder whether third-party or own damages. |
| What Does It Cover? |
Any loss or damage caused to the third party by your vehicle in a road accident is covered. |
This insurance plan provides cover for any loss or damage caused to third-party as well as your own damage. It also provides cover in case of theft as well as damage caused to your vehicle in a natural calamity. |
| Benefits |
If you accidentally hurt anyone on the road or damage their vehicle so you won’t have to pay for the damage out of pocket. |
It provides cover against your own damage as well as third-party. Also, you can get the benefit of no claim bonus while renewing your insurance plan every year only if you do not raise a claim. |
| Limits |
Does not provide cover for own car damage. |
Has no limits but is more expensive than partial car coverage. |
| Premium Rates |
IRDAI determines the premium rates of this insurance coverage and it is cost-effective. |
The premium rates of this insurance plan depend on the add-ons you opt for as well as your car’s make and model. |
| Customization |
You cannot customize this insurance policy. |
You can customize this insurance plan. You can add riders for better coverage such as zero-depreciation, breakdown assistance, etc. |
| What To Choose? |
If you own an old car and do not drive it much then this insurance plan is enough. |
If you have purchased a new car then it is recommended to purchase this insurance plan because it comes with many features such as No claim bonus, etc. |
Apart from these insurance plans, personal accident cover is also mandatory to purchase whether you have partial or full car insurance coverage.
What is Covered Under Full Coverage Car Insurance?
Full coverage auto insurance or comprehensive car insurance offers extensive protection to the insured vehicle. Take a look:
- Death or disability of a third person due to the insured four-wheeler
- Accidental damage of the third-party property
- Total or partial loss of the insured vehicle due to fire and theft
- Coverage will be offered under damages due to natural causes like earthquakes, etc. and
- Manmade acts like riots, strikes, etc.
- Damages caused to the insured four-wheeler while it was in transit via rail, road, water or air.
Moreover, full coverage insurance can also be enhanced by purchasing add-on covers at an extra premium.
How Much Does Full Cover Auto Insurance Cost?
The cost of full coverage car insurance depends on the coverage, plus other factors such as model, variant, any additional cover, engine capacity and RTO of your car. Moreover, different insurers charge different premiums based on the factors mentioned above. Therefore, it is best to compare car insurance plans online on an aggregator website like Policybazaar.com and choose the plan that best fits your needs and budget.
In addition, if you want to get an estimated premium before purchasing a motor insurance policy, you can also use the Car Insurance Premium Calculator.
Finding the Right Insurance Coverage for Your Car
Now that you know about full cover car insurance, you must also make sure to choose the right insurance policy for your car. Finding the right car insurance requires you to understand about types of coverage offered and compare those coverage with your requirements.
For instance, if you only need to cover third party damages, you can only buy third party car insurance, which carries a nominal premium. However, if you want an extensive cover, you must invest in a full coverage or comprehensive car insurance plan.
Thus, make sure you evaluate your coverage requirements, compare different plans, and then choose a policy for your four-wheeler.
