Buying car insurance online can be daunting. One Google search presents you with a myriad of plans, types of policies and providers. The excessive supply of policies can make it difficult to pick one, especially the best one.
Own damage car insurance, third-party cover and comprehensive car insurance are three basic types of car policies. You have two options to protect your car: own damage cover vs a comprehensive plan.
Let us understand the difference between these two types of car insurance policies.
Definitions: Comprehensive Insurance vs Own Damage Cover
Comprehensive Car Insurance
A comprehensive policy combines third-party and own damage losses/liabilities under one plan. It provides all-inclusive coverage, offering peace and financial stability in times of need.
Many insurers like TATA AIG recommend getting comprehensive plans if you’re a new car owner or if you own a particularly expensive car model/brand. In fact, bumper-to-bumper car insurance is a popular example of comprehensive car insurance.
Own Damage Car Insurance
Own damage insurance offers financial coverage only for your insured vehicle, against any type of loss or damage The coverage of your policy and the add-ons you choose determine the scope of the policy, but it usually covers most types of damage related to your car.
You should note that own damage premiums for car insurance are lower than comprehensive plans since they only offer own damage protection.
Difference Between Own Damage Cover vs Comprehensive Car Insurance
| Feature | Own Damage Car Insurance | Comprehensive Car Insurance |
| Coverage | Offers financial protection against loss and damage caused to the policyholder’s car. | Offers financial protection against losses and damages incurred due to third-party liability and own-damage under one policy. |
| Third-Party Cover | Does not cover third-party liabilities. | Covers third-party liability/damage. |
| Premium | Lower | Higher |
| Scope | Depends on the type of coverage and add-ons you choose. Some common inclusions are accidental damage, burglary, theft, total loss, fire, natural calamities, riots and terrorist attacks | The base plan will cover most, if not all, third-party and own damage losses so long as they’re accidental in nature and the policyholder hasn’t violated any laws.
Other common inclusions are damage from natural disasters, fires, terrorism, vandalism and theft. |
| Add-ons | Limited amount of add-on covers | You are offered comparatively more add-ons under comprehensive car insurance. |
Benefits of Comprehensive Insurance vs Own Damage Car Insurance
Comprehensive Car Insurance Policy
- The comprehensive policy offers extensive coverage and a wider range of riders. You also get better coverage if you buy your policy from a trusted and dynamic insurance company like TATA AIG.
- With third-party liability coverage, comprehensive plans offer legal compliance along with financial protection.
- It offers financial coverage in times of emergencies.
Own Damage Car Insurance
- Own-damage covers are less expensive.
- It offers specialised coverage that protects your car from unwanted losses and damages.
- You get to enhance coverage through add-ons.
- You can combine the policy with third-party liability car insurance.
Ending Note
Comprehensive car insurance offers an all-inclusive and broader approach to financial protection pertaining to your car. On the other hand, own damage car insurance offers a cost-effective solution to car protection.
Own-damage and comprehensive car insurance are two different policies with some similarities and a lot of benefits. If you have clear parameters to determine which policy you want to invest in, you can make the decision and opt for the one that is the best option for you.
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