Own Damage Insurance

Own damage car insurance or OD insurance refers to a motor insurance policy that covers your car against damages. This insurance plan provides coverage against damage to your car caused due to accidents, natural disasters, vehicle theft or any other unforeseen incident that is covered by the policy.

Own damage car insurance or OD insurance refers to a motor insurance policy...

Benefits of Own Damage Car Insurance

Own damage insurance meaning stands for an insurance plan that covers damages to your car. Here are the key benefits of the Own Damage car insurance.

Save Money

With OD insurance, you need not buy long-term Comprehensive car insurance to get third-party coverage and own damage coverage.

Financial Backup

Own damage insurance provides you a financial backup if your car suffers any damage due to accidents, calamities, theft, etc.

Wider Coverage

OD insurance allows you to buy add-ons to enhance the coverage of the policy. This option is not available with the Third-Party insurance plan.

Coverage Under Standalone Own Damage Car Insurance

The following sections provide more details about the coverage benefits of the Own Damage car insurance plan.

Accidental Damages: If your car is damaged due to an accident.
Fire and Explosions: Damages to your car caused due to fire or explosions.
Natural Disasters: Damages incurred by the insured car due to earthquakes, cyclones, flooding, etc.
Man-Made Calamities: Damages sustained by your car due to riots, vandalism, etc.
Vehicle Theft: If your car is stolen, the OD insurance will cover such losses.
Total Loss: Own Damage Insurance Plan also compensates you in case your car is damaged beyond repair.

Third-party Liabilities: OD plan does not cover third-party liabilities such as death/injuries to someone else or damages to their property.
Driving Without a Licence: Driving without a valid Driving Licence is illegal. Own damage insurance will not cover any damages to your car in such cases.
Drunk Driving: Damages incurred while you were driving under the influence of alcohol or drugs won't be covered.
Consequential Damages: The plan excludes subsequent damages or losses caused by events such as accidents, fire, etc.
Electrical/Mechanical Breakdown: Own Damage insurance plan doesn’t cover damages related to the electrical or mechanical breakdown in your car.
Wear and Tear: The OD plan will not cover depreciation unless you purchase a plan that safeguards you against depreciation costs.
Other Use: Damages caused to your car while using your vehicle for other purposes not mentioned in a policy will not be covered.
Beyond Policy’s Terms: Any damages to your car that are outside the purview of your policy’s terms and conditions are not covered.

Who Should Get Standalone Own Damage Insurance Policy?

If you belong to any of the following categories, you should consider buying an Own Damage Car Insurance Policy.

New Car Owners

If you purchased a new car recently, getting car parts repaired or replaced can lead to financial costs. A standalone OD policy will help you save money in case of damages to your car.

If You Have a Liability-Only Policy

If you already have a valid third-party liability policy, then you can opt for a standalone Own Damage insurance policy.

New Drivers

For new car drivers, it’s always a good idea to secure yourself with a standalone OD policy and have a good night's sleep.

Owns an Expensive/Luxury Car

Repairing/replacing car parts of a luxurious car can turn out to be a pretty expensive affair. And the Own Damage car insurance plan will save you exactly from that!

Compare: Third Party Insurance vs. Own Damage Car Insurance vs. Comprehensive Car Insurance

Parameters	Third-party Car Insurance	Own Damage Car Insurance	Comprehensive Car Insurance

Coverage	Third-party insurance provides financial coverage for third-party liabilities only	Own-damage insurance provides coverage if there is any damage to the insured car	Comprehensive insurance provides coverage for both third-party liabilities and damage to the insured car
Legal requirement	Third-party insurance is mandatory as per the Motor Laws of 1988	Own damage is not compulsory coverage; however, you must get it to ensure your car is financially protected against unforeseen events	A Comprehensive policy is also not mandatory as per the Motor Vehicle Act
Premium Amount	As third-party insurance is a compulsory requirement, its premium rate is quite affordable	It’s premium amount is higher initially and later gets lowered as the vehicle gets old	The premium rate of a Comprehensive policy is higher as it provides coverage for both own damages and third-party liabilities
Depreciation Rate	The premium amount in third-party insurance is not affected by depreciation	The depreciation rate affects the premium amount in Own-damage car insurance	The own-damage component in Comprehensive policy gets affected by the depreciation rate
Exclusions	Third-party insurance does not provide coverage if there is any damage to the vehicle	Own-damage insurance excludes coverage for third-party damages or injuries	Unlike the other two, a comprehensive policy provides financial coverage against all the unprecedent events that might take place on road

Additional Covers/Add-Ons Under Own Damage Car Insurance

Here are the add-ons you can buy along with the own damage insurance.

Zero Depreciation Cover

Want to eliminate depreciation costs while settling the claims? With this car insurance add-on cover, we will not deduct the depreciation amount. This means you will get a higher amount during claim settlement.

Engine Protection Cover

The heart of any car is its engine. And it can be painful to pay for the expenses in case of damage to your car’s engine. However, with this add-on cover, you are covered against costs due to damage to the car’s engine.

Consumables Cover

Generally, the cost to replace lubricants, engine oil, gearbox oil, nut and bolt, etc., is not covered. Fortunately, Consumables Cover safeguards you from expenses incurred on these consumables items.

Return to Invoice Cover

This add-on cover secures you if your car gets stolen or damaged beyond repair. In such a case, it will compensate you for the amount mentioned on the car’s invoice value.

Key Replacement Cover

Are you worried about the expenses because your car keys got stolen, lost or damaged? A Key Replacement cover will come to your rescue in such cases and will even cover expenses to replace a lock.

Roadside Assistance Cover

Getting stuck because your car breaks down in the middle of a road can be annoying. But with Roadside Assistance cover, you get access to 24x7 emergency roadside assistance services.

Outstation Emergency Cover

Outstation Emergency Cover protects you in case of car accidents or car breakdowns outside a 100 km radius of your residence.

No Claim Bonus (NCB) Protection

When you make a claim, you lose out on the NCB discount during car insurance renewal. However, this add-on cover will keep your discount intact even if you make any claims during the policy period.

Personal Accident Cover for Passengers

We are always worried about our near and dear ones. Personal Accident Cover for Passengers protects your loved ones against unfortunate accidents leading to permanent disabilities/death.

How to Calculate Own Damage Premium

With ACKO’s car insurance premium calculator, you can calculate your Own Damage premium in just a few minutes. Here are the steps for the same.

Visit our website or download the mobile app.

Enter details such as car’s make and model, purchase year, location, previous policy details, etc.

Select a plan, add relevant add-ons, and you can view the premium for the selected plan and add-ons.

What is the Insured Declared Value (IDV) in OD Car Insurance?

Insured Declared Value (IDV) in OD car insurance refers to the sum insured amount of the policy. It is the approximate value of the vehicle when buying OD insurance. If your car is stolen or suffers a total loss, you will get the IDV amount as a claim settlement after the deduction of the depreciation costs.

How to Reduce Own Damage Insurance Premium Amount

Here are a few tips to reduce the Own Damage insurance premium.

Choose IDV Wisely

IDV directly impacts the premium amount. Therefore, lowering IDV will decrease the premium but increase the payable amount during claim settlement and vice-versa. Hence, it’s essential to select the right IDV to balance coverage and premium amount.

Deductibles

Voluntary Deductibles directly impact the premium amount. If you increase the voluntary deductible amount, it will decrease the premium amount. However, it will also increase out-of-pocket expenses during car insurance claim settlement.

Use NCB Discount

Insurers reward you with the No Claim Bonus discount for not raising any claims during the policy period. This discount can go up to 50% in the case of five consecutive claim-free years. If the NCB discount amount is higher, it is recommended not to raise claims for minor damages.

Select Relevant Add-ons

Add-ons like Zero Depreciation cover, Return to Invoice cover, etc., enhance the coverage but also increase the premium amount. Hence, assess your requirements and only select those add-ons that add value to your OD insurance coverage.

Factors Affecting Own Damage Car Insurance Premium

Here are some of the factors that affect the OD insurance premium.

Car Make/Model

The make and model of the car impact the premium. A high-end car will attract a higher OD premium, and a budget-friendly car can be insured at a lower premium.

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IDV

The Insured Declared Value of the car is a crucial factor that determines the OD premium. Higher IDV translates to higher premiums and vice-versa.

Engine Capacity

The higher the engine capacity (cc) of the car, the higher the premium. This is because a car with a larger engine capacity poses a higher risk to the insurer.

Vehicle’s Age

Older cars attract a lower premium compared to new cars due to the depreciation factor. In simple words, an older car has a lower IDV, and hence the OD premium will be lower.

No Claim Bonus

No Claim Bonus (NCB) is the discount offered to you for not making any claims during the previous OD policy period. This discount can reduce the OD premium.

Add-Ons

The Own Damage insurance premium can increase if you opt for add-on covers. The more add-ons you opt for, the more the premium.

How to Buy/Renew Own Damage Car Insurance Online

Here are the steps to buy/renew OD car insurance online.

Download the ACKO app or go to the top of this page.

Enter your vehicle number and previous policy details, if applicable.

Select the OD car insurance and add-ons and pay the premium online to buy/renew the policy instantly.

Types of Claims You Can Raise with Standalone OD Policy

1. Cashless Claim

A cashless claim allows you to get your vehicle repaired at an authorised network garage without having to pay upfront for the repair costs. The insurance company directly settles the bill with the garage, subject to the policy terms and conditions. This process eliminates the need for you to pay out-of-pocket, making it a convenient option for car owners in India.

2. Reimbursement Claim

A reimbursement claim allows you to pay for the repairs at any garage (network or non-network) and later claim reimbursement from the insurance company. After getting your vehicle repaired, you submit the necessary documents and receipts to the insurer for reimbursement of the costs.

How To File For Standalone Own Damage Insurance Claim

Here are the steps to raise a claim against OD car insuran ce from ACKO.

Select the “Register a Claim” option.

Provide details of the damage and upload the relevant documents to raise a claim online.

Written by Saumya Srivastava

10k Linkedin Followers

Reviewed by Lokesh Shetty

A professional writer who loves delivering content that resonates, educates, and keeps readers engaged, making the often complex world of insurance more approachable and enjoyable. Beyond the pen, she is a passionate foodie at heart who believes in savoring life’s flavors in all aspects, whether it's a new dish or a well-crafted sentence.