Owning a car comes with its share of maintenance expenses. Maintaining a vehicle can be very expensive owing to the ever-increasing maintenance costs. So, investing in good auto insurance coverage makes sense to protect you from those additional expenses arising out of any eventuality!
So What Is Own Damage Insurance Policy
As the name implies, an Own Damage policy (OD) is a personalized auto insurance coverage that protects you and your insured vehicle against damages due to accidents such as fire, theft, etc. In the event of an accident, an own damage policy pays for the expenses to repair or replace parts of your vehicle damaged in the accident. For example, let us say you parked your car at its usual place and all of a sudden your neighbor’s cricket ball git one of its windows or probably a coconut falls on the windscreen and leaves not only shackles but dents too! You might be looking at hefty losses in retrospection, but in such circumstances, your damage insurance can get you out of such an unfortunate incident.
Who Should Get Own Damage Insurance?
When looking to purchase auto insurance coverage, you have the option to buy a limited cover or one with an extensive range. As for many, they go for the limited scope, which is the third-party liability policy. The main disadvantage of purchasing this type of auto insurance policy is that it does not offer you or your car protection. So if you are carrying third-party auto insurance coverage, you might also want to purchase a standalone Own Damage policy to protect your vehicle from damages and losses.
What Is Covered In Own Damage Insurance Policy?
Own damage insurance policy covers the cost of damages or loss to your car due to the following:
- Natural disasters such as floods, earthquakes, typhoons, hurricanes, storms, hailstorms, frost, inundation, self -Ignition, lightning, cyclone, etc.
- Artificial disasters such as strikes, vandalism, protest, riots, and terror attacks
- Theft or malicious acts or fire.
What’s Not Covered In The Own Damage Insurance Policy?
Though an Own Damage insurance policy is excellent for your car’s protection, few things are not covered in the policy. These include:
Third-Party Liabilities
Own Damage Insurance policy is a standalone policy and, as such, will not cover your third-party liabilities. Your third-party auto insurance policy will instead take care of the same.
Drunk Driving
DUI or also known as Driving Under Influence (of alcohol), is against the law. Therefore, the Own Damage insurance policy does not cover claims for driving under the influence of alcohol.
Driving Without A Driver Licence
No insurance company will accept claims if you’re driving without a driver’s license. So, you can only file claims if you are driving with a valid driver’s license; as such, Own Damage insurance policy will not cover claims if you’re going without a valid driver’s license. Others include:
- Consequential Damages
- Contributory Negligence
- Driving without a Licence Holder
- Wear and tear and depreciation
- Not having a valid driving license
- Mechanical or electrical breakdowns, failures, or breakages
- Contractual liability
How Protected Are You In Your Damage Policy?
The amount that your insurer pays you for an own damage claim depends on your car’s Insured Declared Value, the deductibles you opted for, and the make/model of your vehicle.
