Comprehensive Insurance And Collision Insurance: Everything You Need To Know

Insurance is the basic essential for any road vehicle. With increasing awareness amongst the vehicle users and smart bundled options from the dealers, insurance companies are coming up with a variety of options and additional insurances to choose from. Herein, we will discuss comprehensive insurance and collision insurance in detail.

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Comprehensive Insurance:

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Comprehensive Insurance is the one that is usually offered with new cars. The insurance secures your car from any damage happening to your car due to incidents that are not under your control. This includes theft, vandalism, natural calamities enlisted in your insurance documents. Comprehensive insurance pays you for any damage done by a third party and covers for any damages done to a third party. Unlike third-party insurance, there is a provision to get comprehensive insurance for more than one year as well. Comprehensive Insurance not only covers the cost of repairs of the damage but also puts the company under obligation to pay you the complete Initially Declared Value or IDV in case of a total loss of the car. In some cases, with the right documents produced, comprehensive insurance also gives the owner coverage for any physical damage that occurred during the accident. Though comprehensive insurance covers you and your car from almost any incident, you don't get full cover for any damages happening to the plastic and rubber parts. It also does not cover your car completely against damages done due to vehicle collision.

Collision Insurance:

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Collision insurance is an insurance policy developed to compensate for a major shortcoming in comprehensive insurance- collision protection. Collision insurance pays you for any damage happening to your car due to collision with another vehicle or stationary object. Although it does protect your car against the most common damage factor, collision insurance can only be bought in addition to either comprehensive insurance or third-party insurance. Collision insurance is being increasingly considered in our country in the recent years ever since renting and leasing cars started getting popular. With seamless insurance procedures and car dealer integrations, it has become easy to get collision insurance as an add-on insurance cover for your new vehicle. Collision insurance, unlike Zero Depreciation comprehensive insurance policy, needs to be subscribed to every year and the cost varies as the age increases.