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Difference between Comprehensive and Own Damage (OD) car insurance

Team AckoFeb 27, 2024

Buying insurance for your new car is the first thing you must do before you hit the road. While Third-party insurance is a standard and mandatory policy by law, you can upgrade with other kinds of policies as well. 

As a car owner, you would want to protect yourself from financial burdens that may arise due to damages to your car or third-party liabilities. Standard Third-party insurance only takes care of the third-party liabilities. Thus, you can extend the vehicle coverage with other kinds of policies like Own Damage (OD) or Comprehensive insurance.




To help you make an informed decision, we explain the difference between Comprehensive and Own Damage insurance in this article. 

But first, let’s look into the Own Damage insurance meaning and its importance in your vehicle insurance. 

What is Own Damage insurance?

What is own damage insurance? Own Damage Insurance covers your vehicle against accidents, thefts, and disasters. It provides extensive protection for your car's damages, distinguishing itself from Third-Party Insurance, which solely addresses liabilities from damages to others caused by your insured vehicle.

Comprehensive insurance for cars

Buying Comprehensive car insurance means that you obtain a combination of third-party and OD coverages for your car. So, you can feel stress-free about all kinds of liabilities, whether related to third parties or your own vehicle. 

Difference between Own Damage (OD) and Comprehensive insurance

The major difference between OD and Comprehensive insurance is the coverage they offer. An OD insurance covers the insured vehicle against damages, loss, theft, etc. However, it does not cover third-party liabilities. 

A Comprehensive plan, on the other hand, is a combination of Own Damage and Third-party Liability insurance. Hence, it covers your vehicle against damages, loss or theft as well as against third-party liabilities. 

Parameter Comprehensive car insurance Own Damage car insurance
Inclusion It is an all-in-one insurance plan for a car. Not only does it cover your car against damages, loss and theft but provides third-party liability coverage as well.  The OD insurance covers your vehicle against damages, loss, theft, etc. But it doesn’t include third-party liability coverage.
Premium The premium is higher than standalone Own Damage insurance. The premium is lower than Comprehensive insurance.
Third-party injury/death It covers you against third-party injuries/death. It doesn’t cover third-party injuries/death.
Third-party property damage It provides coverage in case your car causes damages to third-party property. Third-party property damage coverage isn’t available with OD insurance.

Benefits of Comprehensive car insurance

Below are the benefits why many people buy a Comprehensive Policy for their cars.

1. Financial safety against third-party liabilities

Compliance with The Motor Vehicles Act, 1988 is one of the reasons why car owners purchase insurance. Third-party car insurance is mandatory by law to cover the losses if your car causes a third-party injury/death or property damage. 

The advantage of Comprehensive insurance is that it includes Third-party Liability coverage. Thus, you can legally drive your vehicle in India with financial safety against potential third-party incidents on the road.

2. Coverage against damages/loss of your car

Having third-party coverage alone doesn’t protect your car against any damages. But, there may be many situations out of your control where your car may get damaged or lost. 

A Comprehensive policy offers coverage to the insured car for unforeseen situations. Thus, you get coverage against damages to your vehicle due to natural disasters like earthquakes, cyclones, etc. Plus, this policy provides coverage against car damages caused during a man-made calamity like riots, etc. 

3. Compensation in case of total loss or theft

Apart from all the calamities, this type of policy even covers in case your car gets stolen or damaged beyond repair. Thus, you don’t have to bear the financial burden of theft or total loss of your car in such scenarios.   

4. Customisation of add-on covers

Another advantage of a Comprehensive car insurance plan is the ability to customise it with add-on covers. Based on the availability of add-ons, you can include additional coverages for your car. 

Some of the generally available add-on covers include Engine Protection Cover, Roadside Assistance Cover, Zero Depreciation Cover, Consumables Cover, etc. 

5. Cost-effective insurance 

Comprehensive insurance is a cost-effective way of buying insurance. You get to include all required services, benefits and coverages into one policy. Plus, the ability to customise a plan allows you to avoid over-expenditure on insurance. 

When and who needs Comprehensive car insurance

A Comprehensive car insurance will be an excellent upgrade from Third-party insurance at the time of policy renewal. 

This policy is suitable for everyone who would need financial protection against damages to their car or losses incurred by the vehicle apart from third-party liabilities.  It helps to avoid the hassle of buying different coverages separately, which saves a lot of time and effort. 

When and who needs Own Damage insurance

If you already have an active Third-party Liability insurance plan, then buying Own Damage insurance separately would be a practical choice over a Comprehensive plan. 

In a nutshell, OD insurance covers your car against damages, theft and loss, and Comprehensive insurance combines OD coverage with mandatory third-party coverage.

Also, read: Car Insurance for Damages Beyond Repair

Frequently asked questions

Now, let’s answer a few common questions related to OD and Comprehensive insurance.


Will I get Own Damage coverage with a Comprehensive insurance plan?

Yes, a Comprehensive policy includes OD coverage along with third-party liability coverage. Thus, you stay financially protected if your car gets damaged due to an accident, a man-made calamity or even a natural disaster. The same coverage protects you financially from the theft and total loss of the vehicle. 

Is it mandatory to buy Own Damage insurance?

Though it is not mandatory by law to purchase OD insurance, you must consider it. The OD insurance is essential to have the necessary coverages and benefits for your car. 

Which is the most useful car insurance?

While Third-party insurance is mandatory, an Own Damage insurance plan is essential for cars. A Comprehensive plan offers a combination of both third-party and OD insurances. Hence, Comprehensive insurance is considered the most useful option. 

Can I purchase only OD insurance for my car?

You can’t have only Own Damage insurance for your vehicle. It does not include Third-party Liability insurance which is mandatory by law for motor vehicles in India. 

So, you must purchase a Third-party car insurance plan along with OD insurance. It is the reason why Comprehensive car insurance is considered best-suited, as it includes both kinds of coverages plus extra benefits of car insurance add-on covers.

What will be the cost of buying Comprehensive car insurance?

Your car insurance premium for a Comprehensive plan will depend on various factors. Some of the key premium-defining factors are the make/model of your car, add-ons you select, vehicle’s age, geographical location etc. Hence, you should use our car insurance premium calculator to get your car insurance quote online.

Can I renew car insurance online?

With ACKO’s mobile app and website, you can renew your car insurance online in no time. The car insurance renewal process is completely digital at ACKO and requires no physical paperwork.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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