When Should You Upgrade to Comprehensive Coverage?

From the day you purchase your vehicle, it begins to depreciate at the rate certified by the IRDAI. Within five years, your car can lose up to 50% of its original value. This reduced value is known as the Insured Declared Value (IDV).

You get your insurance claims for parts at a depreciated value. Hence, it is smart to get a comprehensive plan in the beginning years.

Paying insurance premiums is almost a fixed expense you need to make periodically. A comprehensive plan will have higher premiums. Hence, one should evaluate their budget before upgrading to a comprehensive insurance plan.

Renewing your policy is the perfect opportunity to reassess your insurance needs. Review your current IDV and accumulated No Claim Bonus (NCB) to make an informed, well-timed decision about upgrading or adjusting your car insurance coverage.

A comprehensive plan offers a lot more coverage than a third-party plan. It offers financial protection against damages to your car and takes care of third-party losses as well. It is because the repair costs in India continue to rise by 10% and more annually due to increasing part costs and labour charges.

Add-ons such as zero depreciation, engine protection, and roadside assistance are only available with comprehensive plans. For instance, a Zero Depreciation add-on can save policyholders up to 30–40% out-of-pocket expenses during claims, which is a major incentive for the switch.