When purchasing a new vehicle, getting the right car or bike insurance coverage is crucial to protecting you financially. While third-party liability insurance is compulsory, a standalone OD policy can offer unique benefits worth considering.
Own damage vehicle insurance focuses on protecting the insured vehicle from different types of damages and differs significantly from third-party coverage. In this blog, we will discuss what standalone own-damage vehicle insurance is and why you should consider it for your new vehicle.
What is Standalone Own Damage Vehicle Insurance?
Standalone own-damage vehicle insurance is an insurance type that offers financial coverage to your vehicle caused by events such as accidents, theft, natural disasters or fire. The Insurance Regulatory Development Authority of India (IRDAI) introduced the own damage vehicle insurance in September 2018 to offer more flexible insurance coverage options.
Why Should You Buy a Standalone Own Damage Insurance Policy for a New Vehicle?
An own damage vehicle insurance plan is crucial as it offers the required financial coverage to repair or replace your vehicle, which can be expensive. Here are a few reasons why you must buy a standalone own-damage vehicle insurance plan for your new vehicle:
1. Comprehensive Coverage for Your Vehicle
The standalone own-damage vehicle insurance policy protects your vehicle by covering the replacement and repair costs. It provides financial assistance for accidents, alleviating the burden of unpredictable repair costs.
In addition, the plan compensates for theft and total loss, often offering an amount close to the vehicle's purchase price or insured declared value. By focusing on damages to your vehicle, a standalone own-damage policy provides targeted protection, helping you maintain your vehicle's value without incurring out-of-pocket expenses.
2. Flexibility to Select Different Insurers
A standalone own-damage policy offers you the flexibility to select different insurers for third-party and OD coverage. By selecting separate insurers, you can compare and pick the best terms, premiums, and add-on benefits available in the market for each coverage type. It can result in a policy that better suits your needs and budget.
Furthermore, many insurance companies offer discounts or promotional rates on standalone OD policies. You can secure the best OD car insurance online at a lower premium. In addition, you can switch insurers annually for improved benefits and receive the required coverage.
3. Cost Savings with Targeted Coverage
When you plan to buy a standalone damage car insurance plan, it is a cost-effective option than comprehensive plans. It focuses on required coverage without unnecessary services. When you buy this plan for your new vehicle, the plan may charge a lower premium if you drive fewer kilometres and offer the same financial advantage.
In addition, the policy allows you to save on depreciation costs, as vehicles lose value over time. It will offer coverage for specific risks, leading to lower premium rates. You also have the flexibility to add optional protections, like zero depreciation or roadside assistance, without the bundled fees of a comprehensive policy.
4. Easier Claim Process
A standalone own-damage car insurance plan has a simplified claim process, where it focuses on the insured vehicle, ensuring quicker settlements and reduced documentation process. It enables faster claims processing, which is especially beneficial if you use your vehicle daily. When insurers deal exclusively with own damage, they can expedite the resolution of claims.
Moreover, having separate third-party liability insurance keeps the claims process for standalone own-damage policies straightforward and manageable, saving time during filing. These policies also include cashless repair options, allowing the insurer to pay the repair shop directly.
5. Protection Against Repair Cost Inflation
As vehicle technology advances, the repair costs for modern vehicles are steadily rising. From advanced electronics to specialised parts, even minor damages can be expensive to repair. A standalone own-damage insurance plan can protect against these costly repairs by offering financial support for high-tech components, helping you maintain your vehicle's condition.
In addition, a standalone OD policy mitigates inflation-driven increases in repair costs, ensuring you do not have to pay higher rates out-of-pocket. Many insurers also offer valuable add-ons, such as engine protection, zero depreciation, and consumables coverage, enhancing protection for newer or high-end vehicles where repairs can be particularly costly.
Final Words
Henceforth, a standalone own-damage vehicle insurance plan offers a practical, cost-effective solution for new vehicle owners, providing targeted protection for their investment. By allowing flexibility in choosing insurers, offering valuable add-ons, and potentially lowering premium costs, an OD policy is often an ideal choice if you are focused on covering repair and replacement costs for your own vehicles.
