Own Damage Insurance for New Car Owners

While buying a car, additional expenses such as repairs or replacement and maintenance costs leave us worried if our car gets damaged due to accidents, floods etc. In this case, Own Damage Insurance protects you from such additional unforeseen expenses. 

A standalone own damage car insurance policy gives protection from natural disasters as well as damage due to human causes. Additionally, it can be enhanced with add-on benefits, and you can earn a No Claim Bonus discount too. Read on to understand more about it. 

What is a Standalone Own Damage Car Insurance policy? 

Standalone own-damage is a type of car insurance that it will cover the cost of repair of your car and offers you financial security in such cases. It is only required to cover damages to your own car. It is to be noted that only those vehicles which already have third-party insurance can buy an OD policy. A standard own-damage car cover provides coverage against damages that third-party motor insurance doesn't cover. 

Here is what's covered in OD car insurance:

• Accidental Damage- It provides coverage for the damages caused to your car in case of an accident, unexpected event or collision.
• Fire explosions,  Lightning or Implosions- If the damage is caused due to fire explosions or lightning.
• Natural calamities- If your car is damaged due to natural disasters such as earthquakes, floods or landslides.
• Transit of vehicles by rail, road, air or waterways- If your car suffers any damage during the transportation by road, rail, air or waterways, OD policy covers the financial losses. 
• Terrorism, strikes, riots – The OD car insurance also covers the losses caused due to man-made disasters like riots, strikes, terror attacks or vandalism. 
• Total loss- When there's irreversible damage to the car, OD policy covers the total loss of your car and compensation is made for this damage. 

Here is what is not covered in the OD car insurance-

• Third-party liabilities- The OD car insurance does not cover any third-party losses and is only meant to protect your own car from damage
• Depreciation- The own damage insurance doesn't cover any depreciation costs 
• Drunk driving- In case the driver is under the influence of drugs or alcohol and meets with an accident, the damage that occurred to your car is not covered
• Driving without a License- If your car suffers damage when the driver was driving without a license, it is not covered by the OD policy. 
• Electrical & Mechanical breakdown-  The OD car insurance plan doesn't cover any losses that occurred due to electrical or mechanical faults in the vehicle

Add-ons Under Own Damage Insurance Policy

The own damage car insurance renewal comes with some add-ons, which a policyholder can get as per his choices. These add-ons provide extra protection to the car in case of damage. 

• Zero Depreciation Cover- This covers the depreciation costs during claim settlement.  This means that if you have zero depreciation cover, then during claim settlement, depreciation amount will not be taken into account. 
• Engine Protection Cover- This covers costs caused due to damage to the car's engine. 
• Consumables Cover- This safeguards from expenses incurred on consumable items like lubricants, engine oil, gearbox oil, nut and bolt etc. 
• Return to Invoice Cover- If your car gets stolen or damaged beyond repair, this add-on will compensate you for the amount equal to your car's invoice.
• No Claim Bonus protection- During claim settlement, NCB discount is lost. This add-on ensures the NCB discount is intact even if the claim is made.

Benefits of Own Damage Insurance Policy

Some benefits of own damage insurance policy include:

• Enhanced Coverage- Third-party insurance ensures that you comply with the law and protects you against third-party liabilities. However, OD insurance on the other hand is a policy protects your car if it sustains any damages.
• Coverage of car damages- Owning an OD Car Insurance ensures that your car is protected against damages due to incidents like fire, accidents, earthquakes, cyclones, strikes, riots, etc.
• Covers theft- OD plan helps you recover the losses if your car gets stolen or is damaged beyond repair resulting in total loss. 

Conclusion

When it comes to OD car insurance, it is extremely useful as it protects your car against damages, which third-party insurance doesn't. It is equally important to remember that this cover is optional and not mandatory like third-party insurance. One can easily buy the OD covers online in a quick, easy and simple way. While purchasing an OD policy, make sure to look at the inclusions and exclusions in the policy to enable hassle-free premiums and claim settlement.   

Frequently asked questions 

• What are the factors that affect your own damage car insurance premium? 

The factors are- Insured declared value, Age of the car, car model, cubic capacity of the car, NCB, location, car safety, and car fuel type. 

• Is the own damage insurance plan compulsory or optional?

Own damage plan is optional and not mandatory. 

• Can I switch from a third-party cover to an own damage cover while renewing the policy?

You can buy an OD plan even if you have third-party insurance.  

• What is the policy term of OD car insurance? 

It is valid for a year and has to be renewed each year. 

• What is IDV in OD insurance? 

The Insured Declared Value is based on how old the car is. It affects the claim amount, so it should be declared when you are buying a policy.