I will be buying my first car soon. Please tell me about the risks covered under a comprehensive car insurance policy?
Divyansh Saxena, Bhopal
A comprehensive car insurance policy covers any loss or damage caused to the vehicle due to an accident or any other external damage. The coverage is very wide and includes loss due to fire and explosion, riot and strike, malicious act, theft, flood, earthquake, legal protection for death or injury claims from third parties and damage to third party property.
In addition to this, you can get personal accident cover for owner or driver, paid drivers and passengers by paying some extra premium. A car insurance policy has some standard exclusion clauses. Mechanical and electrical breakdown, normal wear and tear, depreciation and consequential loss are not covered under the policy. Damage caused by a person driving the car without a valid licence, or under the influence of alcohol or drugs is also not covered. There is also a ‘co-payment clause’, under which you bear a portion of the claim as and when it arises, which means a lower premium for you.
