Comprehensive vs. Collision Coverage: What’s the Difference?

 The truth about car insurance! Protection from collision or support from theft?

Everyone fears the unexpected, especially when it comes to our car! If the car breaks down, gets stolen or meets with an accident, the mind gets nervous in such situations. But there is no need to panic, friends! Car insurance can become a strong support for you. But, many times there is confusion about car insurance. Especially, people are very confused about Comprehensive and Collision Coverage.

What is the difference between Comprehensive and Collision Coverage?

Both of these are important parts of car insurance, but they protect your car from different types of problems. In this first chapter, we will tell you what Comprehensive Coverage is and what kind of problems it protects your car from.

Comprehensive Coverage: All-round protection for your vehicle!

Comprehensive coverage protects your vehicle from incidents in which there is no collision with another vehicle. This is a kind of all-rounder coverage, which protects your vehicle from many types of dangers. Let us know these dangers in a little more detail:

Theft: This is the biggest fear of car owners! If your vehicle gets stolen, then comprehensive coverage protects you from financial loss. The insurance company gives you a claim according to the value of the vehicle (IDV).

Fire: Fire can also cause a lot of damage to your vehicle. Comprehensive coverage also gives you relief from this problem.

Natural disasters: Natural disasters like heavy rain, hailstorm, earthquake can also damage your vehicle. Comprehensive coverage covers these losses.

Toot-Foot and Vandalism: Vehicles often face damage in the city. Comprehensive coverage supports you in such problems as stone hitting the vehicle, glass breaking etc.

Damage caused by animals: Sometimes while crossing the road, we collide with animals, which damages the vehicle. Comprehensive coverage also covers such damages.

Fear of collision? Collision Coverage is with you!

Now let's talk about Collision Coverage. This is also an important part of car insurance. But, it is slightly different from Comprehensive Coverage. Collision Coverage is directly related to covering the damage caused by collision with another vehicle.

Collision prevention: The work of Collision Coverage!

When your car collides with another vehicle, it causes damage to your car. This damage can be small or big. Collision Coverage protects you from these damages.

What kind of damages does Collision Coverage cover?

• Car repair: If your car is damaged due to collision, then Collision Coverage bears the cost of its repair. 
• Total Loss of Vehicle: If the collision is so severe that it is not possible to repair the vehicle, then Collision Coverage gives you a claim according to the value of the vehicle (IDV).

Important thing: Collision Coverage and Deductible

Often, Collision Coverage includes a deductible. This is a fixed amount, which you have to pay yourself. Suppose your vehicle has a deductible of Rs 10,000 and the collision has caused a loss of Rs 20,000. Then the insurance company will give you only Rs 10,000. You will have to pay the remaining Rs 10,000 yourself.

Comprehensive vs. Collision: Which coverage is better?

This question often arises in people's minds. Actually, both coverages are important for you. Comprehensive coverage protects your vehicle from theft, fire, natural disasters and other dangers. On the other hand, Collision Coverage protects your vehicle from damage caused by collision.

Do you need to take both coverages? 

It depends on your budget and needs. If you want complete protection of your vehicle, then it would be better to take both coverages. However, if your budget is low, then you can take a third party liability coverage along with Collision Coverage. This will also save your budget and you will also get coverage for damage caused by collision.

Car insurance premium: How is it decided?

The premium of car insurance is the amount that you have to pay to the insurance company. You get insurance coverage based on this premium. But, do you know how the premium of car insurance is decided? In this chapter, we will tell you which factors affect the premium of car insurance.

Factors Affecting Car Insurance Premium:

Price of the car: The more expensive the car, the higher will be its premium. This is because when the car is expensive, the cost of its repair or replacement will also be higher.

Engine capacity of the car: The bigger the engine of the car, the higher will be its premium. Maintenance of cars with bigger engines is also more expensive.

Model of the car: Some models of cars are more prone to theft. The premium of such models will also be higher.

Age of the vehicle: The older the vehicle, the lower its premium. Over time, the value of the vehicle keeps decreasing.

Method of use of the vehicle: If you drive your vehicle more, then its premium will also be higher. Driving more also increases the risk of the vehicle getting damaged.

Age of the driver: The premium for young drivers is higher because the risk of accidents is higher among the youth.

Driver's driving record: If you have a record of driving license suspension or accident, then your premium will be higher.

Location of the vehicle: If you live in a city where the risk of vehicle theft is high, then your premium will also be higher.

Type of insurance coverage: The more coverage you take, the higher the premium you will have to pay. No Claim Bonus: If you keep the insurance for many years without any claim, then you get No Claim Bonus. This reduces your premium.

Tips to Reduce Car Insurance Premium:

• Maintain the car properly.
• Park the car in a safe place.
• Drive less.
• Follow safe driving.
• Choose the right insurance company.
• Take advantage of No Claim Bonus.

Car Insurance Claim: How to do it?

Claiming a car insurance is an important process. If your car is damaged due to an accident, theft or other reasons, you will have to claim it from the insurance company. In this chapter, we will tell you how to claim car insurance.

Car Insurance Claim Process:

Report the Incident: If your car is involved in an accident, first report the incident to the police. Get an FIR (First Information Report) from the police.

Inform the Insurance Company: Immediately inform the insurance company about the incident. You can call the customer care number of the insurance company or give information online on their website.

Submit Documents: The insurance company will ask you to submit some documents. These documents may include:

• Registration Certificate (RC) of the vehicle
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• Vehicle Insurance Policy
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• Police FIR
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• Photos of damage to the vehicle
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• Estimate for vehicle repair

Inspection of the Vehicle: The insurance company's inspector will inspect your vehicle. The inspector will check how much damage has been done to the vehicle.

Claim Processing: The insurance company will process your claim. During this, the insurance company will check whether your claim is valid or not.

Claim Approval: If your claim is found to be valid, the insurance company will approve it.

Claim Payment: After the claim is approved, the insurance company will pay you the claim amount.

Claim Processing Time:

Claim processing may take some time. It depends on how complex your claim is. If your claim is complex, it may take more time to process.

Tips for Car Insurance Claim:

• File a claim on time.
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• Submit all the required documents.
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• Cooperate with the vehicle inspection.
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• Stay in touch with the insurance company.
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• Be patient.

Important Terms and Conditions of Car Insurance

Car insurance is a legal document. Therefore, there are some important terms and conditions of car insurance, which are necessary to follow. In this chapter, we will tell you about some important terms and conditions of car insurance.

Important Rules and Conditions of Car Insurance:

Read the Insurance Policy: Before buying car insurance, read and understand the policy carefully. The policy will contain information about insurance coverage, premium, claim process, terms and conditions etc.

Provide Accurate Information: While buying car insurance, provide correct information to the insurance company. Providing wrong information may result in cancellation of your claim.

Pay Premium on Time: Pay the car insurance premium on time. Paying the premium late may result in cancellation of your insurance. Provide Accurate Information While Claiming: While making a claim, provide the correct information to the insurance company. Providing incorrect information may result in the cancellation of your claim.

Maintain the Vehicle: Maintain the vehicle properly. Not maintaining the vehicle may result in the cancellation of the claim.

Follow Driving Rules: While driving, follow the traffic rules. Violating traffic rules may result in the cancellation of the claim.

Do Not Allow Unauthorized Persons to Drive: Do not allow unauthorized persons to drive the vehicle. Doing so may result in the cancellation of the claim.

Keep the Vehicle Safe: Keep the vehicle safe from theft, accidents and other dangers. Not protecting the vehicle may result in the cancellation of the claim.

Renew the Insurance Policy: Renew the vehicle insurance policy on time. Not renewing the policy will result in the cancellation of your insurance.

Conclusion:

Car insurance is an important financial tool. While buying car insurance, read and understand the policy carefully. Follow the terms and conditions. This will ensure that your claim gets approved easily.