What Is The Difference Between Collision And Comprehensive Car Insurance?

When you purchase a vehicle, having car insurance is a must. There are two broad categories of car insurance in the country: third-party liability plans and comprehensive insurance plans. Read on to understand both the types and the key differences between them.

What is comprehensive 4-wheeler insurance?

Comprehensive car insurance is a type of insurance that provides financial protection against any loss or damage caused to the insured vehicle. It is not restricted only to the third-party liability plan and has a variety of benefits to offer. It covers damage or losses caused by theft, accidents, fire, explosions, and man-made or natural disasters. These days, with car prices being so high and repairs being so expensive, comprehensive insurance is a must-have investment. To ensure broader coverage for your car, you can buy comprehensive insurance and collision insurance accompanied by third-party coverage.

With your comprehensive insurance, you can also include add-ons that strengthen your existing cover. Some of these add-ons include zero-depreciation cover, 24X7 roadside assistance cover, no-claim bonus protector, engine damage protection cover, and return to invoice cover. Also, if you often forget to renew your insurance on the due date, you can choose a multi-year policy at a low premium to avoid any policy lapse.

What is collision car insurance?

A collision car insurance policy is a 4 wheeler insurance that provides cover against any accidental collisions. These include any collision with another vehicle or a fixed structure. If your car was parked and another car rammed into it, you are eligible for collision cover in such scenarios, too. In a collision policy, the process of reimbursement is quick, as it rarely matters whose fault it was. It is best to combine collision insurance with comprehensive coverage and a third-party liability plan to ensure overall protection. * Standard T&C Apply

What is the difference between comprehensive insurance and collision insurance?

While the purpose of both policies is to cover damages caused to your car, they are slightly different in some aspects. Here are the differences between them:

Purchase

You cannot purchase collision insurance as a standalone policy. It is compulsory to buy comprehensive insurance if you are planning to buy a collision one. You can buy a comprehensive insurance standalone. *

Protection

Comprehensive insurance protects you from the damage caused by an animal, vehicle theft, fire, and other natural or man-made disasters. A collision policy protects your vehicle from collisions of any kind. *

Cost of the policy

Usually, comprehensive car insurance prices are higher than collision car insurance. You can use a car insurance premium calculator to find an estimate of premiums that you would have to pay on both. * 

* Standard T&C Apply

Both comprehensive and collision policies are bundled plans and are compulsory if you provide your vehicle for lease or finance your car. They do not cover third-party liabilities, and hence, you would have to purchase third-party car insurance separately.

If you are confused about which one to buy, comprehensive or collision car insurance, the answer would be both, as they cover different accidents and damage. Having both types of insurance ensures that you have enough financial protection for your vehicle. Insurance is the subject of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.