The requirement of a car insurance plan is compulsory, and you might have already heard about it. With the knowledge of this fact, you might have got the cheapest insurance plan to ensure compliance with the law, i.e., a third-party insurance plan. However, third-party covers only provide insurance protection for legal liabilities and not for the damages to your car.

But during an accident, it isn’t only a third party that suffers a loss in form of damages or injuries. Your vehicle is damaged as well. Hence, you must reconsider the type of car insurance and opt for a comprehensive plan instead.

A comprehensive policy not only covers the damages to your car during an accident but also in the event of a natural calamity, man-made peril, and even situations of theft. If you are someone who already has a third party car insurance and wants to upgrade to a comprehensive plan for its benefits, this article mentions the steps as well things you need to keep in mind before making the switch.

How to switch a third-party car insurance plan to a comprehensive plan?

If you hold a third-party policy and wish to upgrade your coverage, here are some steps to follow:

  1. Application to the insurer

Once you are convinced about the benefits of a comprehensive insurance plan, you can choose to enhance your coverage for the incremental benefits of your car insurance plan. If you need to comply with the law by paying a certain amount for the insurance cover, why not take maximum benefits by adding a nominal amount for comprehensive plans.

At this stage, the insurance company seeks certain documents pertaining to your vehicle like the registration certificate, which helps in defining the insured declared value (IDV) of your car. IDV is the maximum amount that the insurance company compensates for complete damage to your vehicle. In addition, such an IDV also defines the risk for the insurance company basis which the premium is also decided. Further, you opt for any additional policy features by way of add-ons. All these policies feature together will determine the overall insurance premium. *

  1. Car’s inspection

Once you have applied to the insurance company for a comprehensive car insurance policy, an inspection is carried out. It is done to determine the existing damages if any. The insurer also clicks photographs of the car. Any already existing damages when switching are not covered by the insurer and the same shall be communicated. After a satisfactory survey, the car insurance policy is offered. *

  1. Cancellation of third-party plan and issuance of a new policy

After a thorough inspection, the existing third-party policy shall be canceled in place of which a fresh comprehensive insurance cover is offered. Since a comprehensive policy includes a third-party cover, cancellation of existing third-party cover is required.

Switching a third-party plan to a comprehensive policy is beneficial at renewal since there is an end of coverage and the new coverage begins. However, if you want to opt for all-inclusive coverage during the policy tenure, you can choose an own-damage cover. Such own-damage cover in combination with your exiting third-party car insurance combines to offer the benefits of a comprehensive plan. However, make sure to check its aggregate premium using a car insurance calculator. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.