Difference Between Comprehensive and Own Damage (OD) Car Insurance

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

What is OD Insurance meaning? 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.

Buying a new car insurance comprehensive policy 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. You can also enhance the coverage of Comprehensive policy through different add-ons like No Claim Bonus Protector, Zero Depreciation Cover, etc. 

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. 

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. 

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. 

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. This policy is also recommended for those who wish to save on premiums and get protection for their precious vehicle at the same time.

To get the right car insurance policy, here are the factors you need to consider:

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