When you purchase a car, you expect to have a smooth experience while driving it on the road. You might have experience and better judgement of the road when it comes to driving. While it can be reflected in your track record the same cannot be said for those driving around you. Even if you follow all the rules and maintain road safety, you cannot predict when an accident might happen. But you can ensure that you and your car are financially protected from liabilities with the help of car insurance.
While in India, vehicle insurance
is available by way of comprehensive insurance that provides overall protection, other countries offer collision insurance as well. What is this insurance? How does it fare against comprehensive insurance? Keep reading to know more.
What is comprehensive insurance?
Comprehensive insurance provides you with own-damage and third-party coverage under the same policy. You have financial protection for different circumstances with this policy. Additionally, you also get to include add-ons in this policy that enhance the overall policy coverage. *
What is collision insurance?
This type of vehicle insurance is designed to provide financial coverage if the car is damaged due to colliding with another car or property. In India, collision insurance is not sold separately; instead, collision coverage is offered as a part of comprehensive insurance. In many foreign countries, it is sold separately.
How are they different?
In the countries where these policies are offered separately, their coverage is also different from one another. Comprehensive insurance provides financial coverage only for damage or loss caused due to natural and manmade calamities, fire, and theft. Whereas collision insurance offers coverage for damages caused due to collisions only.
The following are the key differences between these two policies. Do remember the differences mentioned below are not for policies offered in India:
Comprehensive insurance offers coverage for damage or loss caused to your car due to natural calamities such as earthquakes, typhoons, and floods, and manmade calamities such as riots and vandalism, theft, and fire. Collision insurance offers coverage for damage caused due to colliding with another car, pole, tree, wall, or any structure.
Comprehensive insurance is expensive due to the coverage offered under this policy. On the other hand, collision insurance is less expensive due to its limited coverage. The vehicle insurance calculator
can help you see the difference between their prices.
Type of package
Comprehensive insurance can be purchased as a standalone policy. However, collision insurance needs to be purchased along with comprehensive insurance as it is not legally allowed.
* Standard T&C Apply
Which should you buy?
Based on the key differences above, it would benefit you to purchase the two policies together. You are legally allowed to purchase a comprehensive policy individually. However, the absence of collision coverage can cost you a lot if your car were to get damaged in a collision. On the other hand, you are required to purchase collision insurance as a bundle package along with comprehensive insurance. The benefit of this bundle can help you save money. *
Policies in India
Unlike foreign countries, you do not have to worry about having to purchase a separate policy for collision. Collision coverage is offered as a part of comprehensive insurance in India. A comprehensive insurance plan also includes third-party coverage that provides financial coverage from third-party legal liabilities. Insurance companies also offer standalone own-damage insurance that can be combined with a third-party policy*. If you wish to switch to another policy, you can do so at the time of vehicle insurance renewal.
As you can see, the policies that are offered in India are simpler and less complicated in terms of the coverage and benefits offered to you. If you reside in a country where comprehensive and collision insurance are offered separately, it will benefit you to buy the bundle instead of opting for either policy. Online payment for vehicle insurance might help lower the cost significantly for you.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
*Standard T&C apply