Work from home became a common phenomenon as the COVID pandemic resulted in lockdowns and social distancing. Even though the lockdown norms have eased up in many places, companies are still promoting the work from home model to ensure safety. Moreover, many individuals have cut down on socialising and lifestyle activities due to safety concerns. As such, the usage of cars has become minimal. Thus, when it comes to insuring the car, many of you might be thinking of going only for the third party cover since you are using the car minimally. But would the third party cover insure the car against other contingencies which might occur even when not in use?
The perils of theft and fire
Even when your car is parked, it is prone to theft and fire. According to data furnished by insurance companies, thefts of SUVs increased by 15% to 20% in the financial year 2019 compared to the last year. About 10, 000 SUVs were stolen in FY 2019. Moreover, out of 100 cars that companies insure, 1% to 2% of them are reported stolen. (Source: Economic Times). Guaranteeing the safety of your car against theft is, therefore, not possible.
Even if you live in a gated community with top-notch security, you can avoid the possibility of theft; but what about the possibility of fire? A short circuit or an electrical malfunctioning can lead to a fire that might damage your car considerably even when it is safely parked. Can you bear the financial loss in such cases?
Theft and fire are the major concerns of damage to a parked car when it is not in use. As such, mere third party coverage would not prove sufficient. You need coverage that would cover the resultant financial loss that you might suffer in case of either of the two perils.
The possible solution
To supplement your third party coverage, you can opt for independent theft and fire insurance plans. Both theft and fire insurance policies are offered by general insurance companies. While theft insurance, called burglary insurance would cover the loss suffered if your car is stolen, fire insurance would cover the loss suffered in case of fire-related damages.
You can buy all three policies independently, i.e. a third party policy, a burglary insurance policy and a fire insurance policy. These policies would secure your car against mandatory third party liability as well as possible theft and fire-related losses.
What if you can buy one single policy instead? Wouldn’t it be more convenient?
An alternative solution – comprehensive car insurance
There is another alternative which would eliminate the need of buying three distinct and independent covers – comprehensive car insurance.
A comprehensive car insurance policy not only covers the mandatory third party liability but also the losses suffered when your vehicle suffers any damage, including theft. So, even if the chances of road theft are eliminated when you don’t use your vehicle, you can get covered against theft and fire under a comprehensive plan. Here are the benefits that you can avail of –
- A single policy to service with a comprehensive scope of protection
- A single premium which might work out to be lower than the aggregate premium of three independent plans
- Customization through the option of add-ons
- Premium discounts for making no claims
- Hassle-free purchase and renewals
- Cashless repairs at networked garages
The bottom line
A comprehensive car insurance policy is, therefore, relevant even if you don’t use your car too often. Besides covering theft and fire, the policy would also provide coverage when you do use the car, however seldom it might be. So, don’t take any chances when it comes to insuring your car. Opt for a comprehensive coverage and get the most inclusive scope of coverage against possible damages.