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Comprehensive Guide to Understanding Inclusions and Exclusions in Car Insurance

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If you are a car owner, you may have already explored every other option to find the best insurance policy for your car. When you buy a car insurance policy, one of the most important things you need to know is what is included and what is excluded from the policy. However, since most people buy insurance on a budget, the first and sometimes the only thing they check is the premium amount.

The inclusions of a policy depend on the type of car insurance you purchase. If you have a third-party policy, which is a mandatory requirement for all car owners, you will receive coverage for damages caused to third-party cars, property, and any physical injuries. But, if you have a comprehensive car insurance policy, you will get full protection from third-party liabilities as well as damage to your car. Here is a detailed look into what are the inclusions and exclusions of car insurance:

Inclusions

Damage to your car

When you buy car insurance online, it allows you to free yourself from the worry of the financial burden of an accident. If you get into an accident and end up damaging your vehicle, you should notify your insurance company immediately to get cashless repairs or claim reimbursement for money spent on fixing your car. Generally, most insurance companies provide a 48-hour period to report an accident. Failure to report may cause problems with your claim.

If damaged, you can take your car to any network garage or you can repair your vehicle at any local garage. After verifying the estimated cost and inspection of the car, the insurance company will release the claim amount.

*Natural disasters

Natural disasters such as earthquakes, landslides, and floods can cause severe damage to your car. Under comprehensive car insurance coverage, you get full protection from car damage due to natural disasters.

*Personal accident cover

Usually, insurance companies offer personal accident coverage as an add-on with a comprehensive policy. Personal accident coverage provides financial protection for you and your family if you are injured in an accident. In the case of your death, the benefit of the policy is given to your nominee. Since personal accident coverage is often offered as an add-on, it will not be available for third party car insurance buyers.

*Man-made disasters

Often, personal belongings such as cars are damaged in man-made conditions such as riots and strikes. Comprehensive insurance can help you get coverage against such losses. Essentially, if your car is damaged and it is not your fault, the repairs will be covered.

*Car theft

If your car is stolen, you can claim compensation equivalent to the IDV (Insured Declared Value) specified in the policy documents. You can use a car insurance calculator to find the right IDV for your car insurance policy.

*Property damage

If you get into an accident where you end up damaging someone else’s property, you are liable to pay compensation for the damages. Car insurance ensures this liability is fulfilled without you having to spend any money. *

* Standard T&C Apply

Exclusions

Whether you buy comprehensive car insurance online or offline, there are some exclusions in your policy. Car insurance exclusions are incidents that are not covered by your policy. Items not covered under the plan will always be mentioned in the policy document. Here are a few standard exclusions:

  • Damage to the car if the car is used for illegal or malicious purpose
  • Damage caused by the driver being underage or convicted of driving without a valid license
  • Damage to the car if the driver is found to be driving under the influence of alcohol, drugs, or any other intoxicating substance
  • Damage to the car due to nuclear activities, warfare, or terrorist attacks
  • Any damage to the car engine will not be covered under the car insurance policy
  • Damage caused by breakage of mechanical or electrical components
  • Damage to the car due to tire or tube damage
  • If any accessories are damaged due to the accident, the insurance company will not be liable to pay for it

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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