Keeping your four-wheeler in good condition can be costly due to ever-rising maintenance expenses. Own-damage car insurance is an affordable way to ensure protection for your four-wheeler against accidental damage and other losses, including fire, theft, natural disasters, etc.
Let’s explore how Own-Damage car insurance works and why you should consider purchasing it.
What is Own-Damage Car Insurance?
Own-Damage car insurance is a type of car insurance policy offering coverage for damages to your car. Unlike third-party insurance, which covers damages to third-party property or vehicles, car insurance for own-damage focuses on protecting your car from various perils and risks.
An OD (Own-Damage) policy helps you remain covered against damages caused to your car due to accidents, theft, fire, etc. In case of an accident, an Own-Damage car insurance cover offers compensation for the expenses incurred to replace or repair parts of your four-wheeler damaged in the accident.
How Does an Own-Damage Car Policy Work?
Own-damage car insurance is optional but essential coverage that protects your vehicle. While others may already cover your four-wheeler (by way of third-party insurance), you will eventually be required to protect your own vehicle. Hence, buying an own-damage car policy is important.
An Own-Damage car policy can protect your four-wheeler from various damages, something third-party insurance cannot offer. Additionally, you can buy add-on covers with this policy with this policy to extend its coverage.
Own-Damage car insurance covers the following:
- Theft or malicious acts
- Explosion, Self-Ignition and more.
- Man-made calamities such as riots, vandalism and terror attacks.
- Damage to your four-wheeler or the belongings in the four-wheeler in case of an accident.
- Natural calamities include earthquakes, floods, lightning, fires, and more.
You will be compensated for the loss if your four-wheeler is stolen or suffers damages or total loss due to theft or irreversible damage. Own-Damage Insurance cost depends on three factors: Insured Declared Value (IDV), the car’s age and the area in which you drive the car.
Own-Damage Car Insurance Benefits
Save Money
With Own-Damage insurance, you will not need to purchase a comprehensive car insurance policy (if you already have the mandatory third-party policy) to get own-damage and third-party insurance coverage.
Financial Security
Own-damage car insurance offers financial security if your four-wheeler suffers damage due to theft, calamities, accidents, etc.
Wider Insurance Coverage
Own-Damage car insurance allows you to purchase add-on covers to extend the policy’s coverage. Some add-on covers available with an Own-Damage car policy include consumables cover, engine protector cover, key protect cover, nil depreciation cover, etc.
Car Insurance Own-Damage: Exclusions
Some common exclusions under an Own-Damage car policy:
- Damages to a third-party vehicle
- Damage caused to a third-party property
- General wear-and-tear of the four-wheeler
- Electrical or mechanical breakdown
- Damage or loss caused while driving under the influence of alcohol or drugs.
To Wrap It Up
If you love your four-wheeler, you must ensure that it is well-protected. Some four-wheeler owners are still unaware of the importance of own-damage car insurance and skip it as it is optional.
Investing a little extra in an Own-Damage car policy might help protect them against financial burdens.
Lastly, purchasing the policy online may be much more convenient and easier as you can get all the details on product options, pricing, etc., at the click of a button.
