What Is Own Damage Car Insurance? – Undoubtedly, maintaining a car or vehicle can be quite pricey, especially when it comes to maintenance costs. Meanwhile, own damage car assurance is a cheap and comprehensive way to safeguard your car from losses or accidental damage like fire or theft.
Unlike comprehensive car insurance, own damage assurance offers coverage for shorter durations and more affordable rates. Apart from this, this form of insurance offers wider coverage beyond safeguarding vehicles against a wide array of risks and third-party liability.
Additionally, financial security and peace of mind are attained for car owners. For more informative details, keep scrolling.
What Is Own Damage Car Insurance?
Own damage car insurance is also known as comprehensive car assurance. It is a form of auto insurance quote that offers coverage for damages or losses to your own vehicle or car.
Unlike third-party liability assurance where only injuries and damages caused to other parties in an accident are covered, own damage insurance offers coverage for the associated costs from different risks or threats that affect your car or vehicle.
How Does It Work?
The concept behind own damage car insurance is straightforward. This form of coverage works by offering protection for damages caused to your own car or vehicle by different threats like fire, theft, vandalism, natural disasters, and accidents.
What’s more, it also helps ensure that the policyholder gets the financial reimbursement to replace and repair the car based on the policy’s terms and conditions. In addition to this, it functions as a part of or alongside comprehensive car insurance giving protection beyond that of third-party liability insurance.
What Does Own Damage Car Insurance Cover?
Damages done to your own car or vehicle by different covered perils will be covered by a standard own damage car insurance policy. These include:
- Vandalism.
- Accidental damages.
- Theft.
- Fire damage.
- Natural disasters.
- Terrorism.
- Riots.
Additional endorsements include:
- Roadside assistance.
- Nil depreciation coverage.
- Key and Lock protect coverage.
- Consumables coverage.
- Engine Protect coverage.
- NCB Protect coverage.
What Are Its Exclusions?
These are events or situations where own damage auto insurance coverage will not be applied:
- Unlicensed driving.
- Wear and tear.
- Tyres and tube damage.
- DUI.
- Intentional acts.
- Illegal activities.
Who Needs a Policy?
OD car insurance or comprehensive coverage will be quite useful for you if you are a car owner. To protect one’s self from financial instability, getting own damage car assurance will help with possible liabilities and damages to one’s car or vehicle.
Secondly, if you are a lender or lessor. Thus, if you have leased or financed your car, you need to have insurance coverage that protects your interest in the vehicle financially. Thirdly, if you are a driver.
If you make use of a vehicle frequently, you should consider purchasing own damage car insurance. Additionally, for businesses thatuse cars or vehicles for commercial or business purposes, you need commercial car insurance quotes to cover both the driver and the vehicle.
Own Damage Car Insurance Price
There is no fixed average cost of an own damage car assurance policy. Instead, there are several factors that are responsible for determining the price or cost. They include the following:
- Level of coverage.
- Vehicle value.
- Location.
- Age of driver.
- Vehicle type.
- IDV (insured declared value).
- Additional coverage.
- Insurance company.
- Driver’s experience.
- Deductible amount.
In the meantime, you can ask for multiple policies from multiple insurance providers to get the best rates for your financial needs.
How to Get Own Damage Car Insurance
If you decide to purchase or buy own damage car insurance, here is a comprehensive guide you can use to successfully get a suitable policy for your needs and budget:
- Determine your coverage needs.
- Compare insurance quotes.
- Check premium costs, coverage details, additional benefits, and exclusions.
- Provide the details of your vehicle.
- Fill out the provided form.
- Submit the necessary documents.
- Undergo vehicle inspection.
- Make premium payments.
- Go through the policy’s documents.
- Renew to maintain coverage.
With help and guidance from these steps above, you can easily get an own damage car insurance policy to safeguard your car or vehicle from fire, accidents, natural disasters, and theft. So, what are you waiting for? Follow these steps carefully and make the necessary consideration to choose the best quote.
FAQs
What is the difference between Own Damage (OD) insurance and Third-Party insurance?
This is one of the commonly asked questions by car owners. Own damage car assurance is a form of protection that covers your own car or vehicle as a result of theft, vandalism, accidents, or fire. On the other hand, third-party insurance offers coverage for damages caused to the property or injuries of third parties by your car.
Is Own Damage insurance mandatory?
Having an own damage car insurance policy is not compulsory or mandatory by the law in most countries. However, it is still highly recommended for protection and comprehensive coverage against different risks.