Partial and Full Coverage Car Insurance: Comparison and Considerations

The most popular insurance plans that are offered by insurance providers in India are partial and full auto insurance coverage. Regardless, car accidents are becoming increasingly common as a result of an increase in the number of vehicles and poor road conditions. Hence, protecting your car from potential threats with partial or full coverage car insurance might be wise.

Primarily, insurance firms offer two categories of insurance policies. Those are full and partial coverage for auto insurance. In this regard, the Indian government made partial automobile insurance coverage mandatory for vehicle owners under the Motor Vehicle Act of 1988. 

Consequently, here is a brief discussion of insurance policies provided below:

Partial Car Insurance Coverage is a third-party insurance which is a mandatory insurance policy. It is also known as liability insurance as it protects from any damage brought on by an accident to both you and a third party.

This insurance financially guards you against the following damages owing to the third party:

• Any third-party harm
• Death
• Loss of property
• Bodily injury

Moreover, this insurance plan only covers the other party's damage costs in the event of an accident, not your own. Therefore, this insurance policy can be advantageous to people who drive older vehicles.

If you are willing to buy car insurance in India, here are the top factors to consider:

1. Premium Amount: It's critical to have a thorough understanding of the needs of the car and the likelihood of risks early on. This way, you will benefit when determining the appropriate premium amount.
2. Coverage: Different insurance policy providers provide varying levels of coverage. The coverage must therefore be carefully examined before choosing a plan. When purchasing add-on covers, you should judge carefully. You can consider them as supplemental coverage that could be added to a Comprehensive Plan. You must note that each add-on has a cost, which varies from insurer to insurer.
3. Insured Declared Value (IDV): Insured Declared Value or IDV is the car's current market value as determined by subtracting the amount of depreciation. This component must be taken into account because it is crucial in determining the compensation amount.
4. Claim Settlement Ratio: You should investigate the business’s track record and claim settlement percentage before purchasing an insurance policy. This is the proportion of insurance claims resolved by an insurer relative to the total number of claims received.
5. Market Reputation: The market reputation of the insurer from which the customers intend to purchase the insurance plan is another crucial consideration. Customers will benefit from this research since it will help them comprehend the company's dependability and familiarise them with the history of the insurer's claim settlement.
6. No-Claim Bonus: No claim bonus (NCB), which is a percentage provided for each year without a claim, is available at the time the new policy is renewed. In most cases, only new cars are eligible for this type of bonus; used cars do not have access to them because of ownership changes. So, before purchasing a plan, you should take this into account as it might assist to lowering the overall renewed premium.
7. Exclusions: Exclusions are particular elements or circumstances that an insurance policy does not cover. Before purchasing insurance, it is crucial to read the policy documentation thoroughly to prevent any unpleasant surprises during the claim procedure. In this regard, breakdowns, subsequent loss, wear and tear, losses caused when operating a vehicle while intoxicated, etc. are a few of the frequent exclusions.
8. Cashless Facility: The term "cashless" in the context of insurance refers to the absence of an upfront payment required for the resolution of claims. Consider the ₹ 10,000 repair bill for your wrecked car as an example. After making all the necessary calculations, the insurance proposes a settlement of ₹ 8,000. In this case, the insurer will pay the garage ₹ 8000, and you will be responsible for the remaining ₹ 2000. Due to a tie-up and the garage's reputation for facilitating Cashless Claim Settlement, the insurer can pay the garage directly. As a result, an insurer with a large network of garages can effectively provide a cashless facility.
9. Service Quotient: Above all these considerations, the insurer's services must be user-friendly. The needs of the client must come first for the brand in all respects. The insurer's service quotient should be strong, whether it is for customer support during plan purchasing, resolving questions after purchase, or assuring clear claim settlement. Because it is an intangible element, it is challenging to quantify. But you can assess this by looking at the brand's social media pages and asking around among your peers.
10. Online Facility: Even if you are a traditionalist, purchasing insurance online has numerous advantages. In terms of cost, practicality, and services, it outperforms the conventional offline approach. When compared to established businesses, online insurance companies lack the infrastructure, physical offices, and workforce that they do. This significantly lowers their operating expenses. That is one of the main explanations for how they can offer policies at a lesser cost without compromising coverage.

One of the main reasons you should upgrade to full auto insurance (comprehensive) coverage is that partial insurance does not cover your losses. However, there are several additional factors, including the following:

1. Personal Damage is Included: Unlike partial car insurance coverage, which requires you to buy personal accident protection separately, complete vehicle insurance coverage includes personal accident cover as standard.
2. Benefit of Customisation: You can choose to personalise it when you upgrade to full auto insurance coverage. For instance, you can add several types of riders for better coverage if you are dissatisfied with your current comprehensive plan. Additionally, you can alter your insurance plan's Insured stated value.
3. Includes Third Party Liability: Third-party liability coverage, which offers protection if your car damages another person's car or property, is a portion of full car insurance coverage. Car insurance is particularly important since it keeps you protected from all potential disasters.  This includes natural calamities, damage to and loss of property from accidents, and potential legal proceedings. Also, no matter which insurance you choose, be it partial or full coverage car insurance, make sure to read all the documentation carefully.