Everything You Need to Know About Full-Coverage Car Insurance

Car insurance is more than just a legal requirement; it provides financial protection for you while on the road. Full-coverage car insurance is a type of policy encompassing various kinds of coverage, essentially a combination of protection. Whether you're purchasing a new vehicle or enhancing your current policy, it's essential to understand what full-coverage insurance entails.

You can now obtain motor insurance via online platforms like Upstox and have options from the largest insurance providers, such as Bajaj Allianz, Tata AIG, ICICI Lombard, and HDFC ERGO.

What is Full-Coverage Car Insurance?

Generally speaking, full-coverage car insurance involves comprehensive, collision, and third-party liability coverage. By purchasing this type of insurance, you will have coverage against many risks, whether you're at fault or not. Full coverage isn't a specific product; the term can have different meanings across companies and states. Still, it refers to a combination of coverages that will cover your car and other people involved in an accident.

What Does Full Coverage Include?

Here’s a breakdown of what full-coverage car insurance usually covers:

Types of Car Insurance Coverage

Why Should You Consider Full Coverage?

Full-coverage insurance gives peace of mind and protection. Here are just a few reasons to choose full-coverage insurance over no insurance or lesser coverage:

• Protects your investment, especially for new or high-end vehicles.
• Covers own damage as well as other damages to Third parties.
• Essential if you have a loan-financed car, as lenders require full coverage until the loan is paid off.

Covers many unexpected events, but accidents, theft, natural disasters, and vandalism can be expensive.

Full Coverage vs. Third-Party Insurance

Many individuals often confuse third-party insurance with full-coverage insurance. Here is a brief comparison:

• Third-party insurance is required by law; it only covers damages you cause to another party.
• Full-coverage insurance provides comprehensive protection for your car, covering a broader range of risks.

Third-party insurance is undoubtedly less expensive, but it protects your vehicle (only). Full-coverage insurance is more costly, but it provides thorough protection.

Get Motor Insurance Easily with Upstox

Upstox, a well-known investing platform, also arranges motor insurance with leading general insurers. Upstox is a one-stop digital platform for users to compare and buy insurance policies from well-known companies in the industry:

• Tata AIG General Insurance
• SBI General Insurance
• ICICI Lombard General Insurance

Customers can avail custom policies, quick quotes, convenient renewals, and instant policy issuance in minutes.

When is Full-Coverage Insurance Worth It?

Think about getting full-coverage insurance if:

• You have a new or expensive car.
• You drive in an area with a lot of accidents and theft.
• You can't afford repairs on your vehicle out of pocket.
• Your vehicle is financed through a loan or lease.

However, if your vehicle is older or has a low market value, you can switch to a more basic policy for a better price.

Tips to Lower Full-Coverage Premiums

Comprehensive coverage could be expensive. Here are several ways to help save on the premiums:

• Compare policies on Upstox to find the best deal.
• Choose a higher voluntary excess.
• Have anti-theft devices fitted and follow the discount.
• Don't add on anything you don't need.
• Drive safely to maintain your no-claim bonus (NCB).

FAQs

Is full-coverage car insurance compulsory in India?

No, full-coverage car insurance is not legally required. You only need to have third-party liability coverage. Full coverage is optional but highly recommended for complete protection.

How do I buy full-coverage insurance online?

You can compare plans and buy full-coverage car insurance from digital tools or brokers like Upstox. These tools have search capabilities that make it easy to compare options from major insurers, such as ICICI Lombard or Tata AIG.

If I buy full-coverage insurance, does that cover engine protection?

No. If you want engine protection coverage included, you need an engine protection add-on for your full coverage plan.