You’ve invested months of time and hard-earned money into tricking out your car ride just how you like it. Your customised car reflects your personality, from flashy rims to booming speakers to performance upgrades under the hood.
But what happens if some careless driver crashes into your vehicle or a stranger decides to have some fun with spray paint? Without your own damaged car insurance, you could pay the entire repair bill out of pocket. The bills could extend to tens of thousands of rupees.
That’s why your ‘own damage car coverage’ is essential for protecting your investment in your vehicle. This type of insurance shields you from potentially bank-breaking repair and replacement costs if your car meets an untoward incident. Keep reading to learn exactly how the own damage car insurance preserves the value of your vehicle and gives you peace of mind.
What is own damage car insurance?
Own-damage car insurance provides vital financial protection for your automobile investment against unforeseen catastrophes, which could otherwise lead to astronomical repair bills or total loss of your vehicle.
Unlike mandatory third-party liability coverage, own damage insurance is an optional safeguard protecting your car. This add-on policy delivers invaluable peace of mind by furnishing funds for fixes or replacements.
OD protection can be purchased alongside obligatory third-party coverage or within a comprehensive plan to secure your prized car’s value effectively. This provision mitigates the chances of out-of-the-blue repair costs devastating your finances.
How own damage insurance works
Own damage insurance covers the policyholder’s vehicle against damages or losses. It typically includes financial coverage for:
- Accident-related damages
- Natural disasters like floods or hailstorms
- Fire
So, suppose another motorist ploughs into your custom car, or it suffers damages from natural disasters. In that case, the damage coverage can help you pay for repairs or replacements up to the limits of your policy.
Without this protection, you could easily rack up auto body shop bills exceeding tens of thousands of rupees to fix your prized possession after a single incident.
Key benefits of own damage insurance
Here are the key benefits of own-damage car insurance:
- Covers expensive repairs and replacement costs: Bodywork, paint jobs, audio equipment, and performance upgrades are costly. Just one mishap could easily lead to significant repair bills.And if your beloved ride gets damaged, your damage insurance pays the car’s actual cash value or replacement cost so you can buy another set of wheels. With coverage, these expenses could satisfy your finances.
- Allows you to spend confidently on upgrades: You might be looking to boost your engine’s horsepower or outfit the interiors with deluxe leather seats. Own damage protection gives you the confidence to invest in these pricey upgrades without worrying that an untoward incident will damage your investment.
- Covers brand-new vehicles right away: When you first drive a new car off the dealership lot, its value plummets. But your damage insurance can protect the original price you paid. This can be an effective way to protect your investment.
Factors that impact premiums
Premiums for damage car insurance policies depend on several factors. Some of the notable factors include the following:
- Vehicle maker, model, and year: A car’s make, model, year, and mileage can all impact insurance premium costs.
- Modifications and upgrades: Performance modifications, such as turbochargers, lowered suspensions, and engine enhancements, can increase risk and raise premiums.
- Your location: Where you live significantly affects premium costs, with urban areas typically having higher rates. Rural and suburban areas usually have lower premium rates.
- Your age and driving record: Younger drivers pay higher premiums due to inexperience and tendency to speed and text behind the wheel, while older drivers get lower rates. A clean driving history with no accidents, tickets, or claims leads to the best rates.
- Amount of coverage (deductible): Choosing a higher deductible lowers your premiums, which is the portion you pay out-of-pocket before insurance coverage kicks in. A lower deductible cost raises the cost of premiums but reduces how much one pays for repairs.
- Insurer: The insurance company you choose can significantly impact your premiums. Top companies usually offer more competitive rates due to economies of scale, while smaller regional firms provide more personalised services.
Insurance providers charge higher premiums for sports cars and vehicles with major performance enhancements or audiovisual equipment since they cost more to repair and replace. They also view young drivers and those with accident histories as higher risks.
How much coverage do you need?
Ideally, your damage insurance limits should equal the value of your car, including all upgrades and customisations. It is important to select an adequate coverage amount. That way, even if your vehicle gets damaged, your ‘own damage car insurance’ policy will pay enough compensation for you to buy a comparable vehicle.
Before picking coverage limits, calculate your spending on aftermarket parts, audio gear, paint jobs and other enhancements. Also, research the current value of factory upgrade packages like yours. This can help you calculate accurate figures to insure.
Remember to account for sales tax and labour charges, too. Failing to buy adequate protection could result in hefty out-of-pocket costs later on. To secure discounted rates on car insurance, one should ask about raising the deductible and qualifying for multi-policy or multi-car discounts.
Conclusion
If you’ve poured time, effort and money into purchasing your dream ride, your ‘own damage car insurance’ can help protect your vehicle against costly losses. This coverage safeguards the value of all the coveted features so you can continue to enjoy your prized possession without financial fears holding you back.
It is better to protect the fruits of your labour before it’s too late! Research your damage policies, compare quotes and speak to an agent about the proper protection for your cherished possession.
Frequently Asked Questions
How does own damage insurance benefit car owners?
Own-damage insurance covers repair or replacement costs for damages to your customised car caused by accidents or natural disasters.
Are car modifications included in the own damage insurance coverage?
You can extend your ‘Own Damage’ policy to cover modifications by declaring them upfront during policy purchase. Adding non-standard accessory coverage is necessary to ensure complete protection for custom add-ons.
Do customised cars have higher own damage insurance premiums?
Performance enhancements or aesthetic modifications that increase insurance value and perceived risk, such as racing stripes, lowered suspension, or engine tuning, may increase insurance premiums. So customised cars often have higher ‘Own Damage premiums’.
What happens if I don’t declare car modifications in my OD insurance?
Failure to declare modifications can result in claim rejection as undeclared changes essentially void the coverage for specific components. So, it is crucial to disclose any customisations.
How does own damage insurance support the resale value of customised cars?
OD insurance maintains the car’s condition through coverage for repairs and damages, ensuring that valuable customisations like racing seats, body kits, etc., are preserved in good condition.
Is there any add-on coverage for specific customisations in OD insurance?
Add-ons like depreciation cover and engine protect can be included in the OD insurance policy to protect the value of one’s car.
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