Here's all that your comprehensive car insurance doesn't include in its policy

by IndianAuto Team | 17/04/2019
Share this post:
A comprehensive insurance is the best way to achieve peace-of-mind when driving around in your new vehicle. However, there are a few exclusions when it comes to reimbursements

Car Comprehensive Insurance


If you drive a car in this day and age, one of the most basic things that you require in running a car is insurance. There is no way around it! Even if you are the most careful driver in the world, the person that you may meet at the very next intersection might not be. That is the the very first things that I was taught when learning how to drive a car. So imagine a scenario - you go out for a casual sunday drive, cruising down the road with the speedo barely ticking over 30kmph and the next thing you know, bam! The driver at the next turn has just come around the turn too hot for his own capability and T-boned straight into your new car. Not having insurance won’t just get him off the hook but have you in trouble with the law as well. But, what are the exceptions to comprehensive insurance? And what don’t insurance companies cover in its policies? Well, stay tuned because we are about to make all queries clear as crystal for you guys.

Comprehensive Insurance – Things to keep in mind

A vehicle’s age

The ageing of a person’s vehicle plays a very important role in the amount of money you wish to claim by redeeming your comprehensive insurance cover. What that means is, the amount of claim that you can get for the damage that you concur is based on what the value of your car is on that day. Now, as you might know or should know is that your vehicle is a depreciating asset. Basically, much lower than the price you paid when purchasing the car. What is also important to remember is that your car starts losing its value the second it is registered and driven out of the showroom and on to public streets. For example, if you buy a car with a price tag of INR 7 lakh, would have a value which has depreciated to INR 6 lakh after 1-2 years of ownership. Therefore, in case of an accident, the amount you can claim through your comprehensive coverage would be based on the reduced value of your vehicle. 

A driver with no license

Another big factor which results in non-participation from your insurance companies in case of an accident would be if your vehicle gets damaged while being driven by an unlicensed driver. While it isn’t necessary for the policyholder to be the one driving the vehicle at the time of the accident to receive an insurance claim, but do not expect insurance companies to pay out any sort of reimbursement in case his vehicle was being driven by a driver with no license or even an expired license at the time of the incident.

A driver under the influence of alcohol or drugs

Not only is driving under the influence of alcohol or drugs a punishable offence, that is the number one policy in which case your insurance companies will not budge an inch when it comes to reimbursements. Moreover, an insurance company won’t be even be liable by any sort of law to require them to pay out for damages to your car which has been involved in an incident or an accident. Be it you or whoever was driving the car at the time of the mishap, there would be no insurance coming through if the car was being driven by someone who was drunk or doped out. No claims would be entertained or compensated in any way, regardless of whether or not the driver possesses a valid driving licence.

A car’s wear and tear

As your car gets used you and family members, they have a tendency to wear down the more you use them. While some parts of a car may break off or stop functioning altogether, this is a given owing to the wear and tear that takes place over a vehicle’s hard knocks life. While, comprehensive insurance does come in to save the day in order to cover damages in case of an  accident but but they are designed not to offer reimbursement for damages which occur due to wear and tear. For example, you can claim reimbursement when your car gets into a fender-bender. But, the same cover will not reimburse the policy holder to get some loose panels tightened or for wiper blades or fused headlamps/tail lamps. What is also important remember when it comes to claiming insurance, even scuffs that are small in nature or have a diameter of less than 0.5-inch are considered normal wear and tear by insurance companies and are not eligible for reimbursement or compensation under the comprehensive coverage. 

A car’s mechanical & electrical components

Apart from the minimal scuffs that your vehicle tends to pick up in day-today wear, your car’s insurance cover also doesn’t include electrical and mechanical parts. Supposing, any mechanical or electrical failure that your vehicle might incur due to your own or someone else’s fault will not be liable for payout under the comprehensive coverage. To put it even more simply, basic upkeep of a car is critical if you want to have any hopes of being covered by insurance in case of a vehicular disaster. To give you an example, you can’t claim insurance for the damage suffered by your car’s engine caused due to low oil or coolant level owing to improper maintenance. However, there are certain ‘add-ons’ that can be purchased along with your standard insurance policy that will cover damage to mechanical parts caused by flooding or a natural calamity. And it goes without saying, you will need to pay more for that extra cover and extra peace of mind.

A car’s tubes & tires

What is aldo not covered by your standard insurance policies, or even add-ons over the standard policy for that matter, are the tubes and tyres that are fitted on to a person’s vehicles. The tyre is your sole contact to the tarmac and is responsible from ferrying passengers in comfort, also has the job to keep a car’s ride and handling in check. Safe to say, tyres play an important role and have the ability to wear out the fastest amongst the list of important car components. Therefore, the tyres are another part of of your vehicle that will not be covered by insurance, in case of damage or normal wear. Being rubber, tubes and tires are also prone to suffering damage through sharp objects and bad roads. Insurance companies have a strict policy when it comes to tyres in the above two cases. However, there is an exception and that is in case the damage occurred to them is due to an accident, the insurance company will be liable to pay only 50 per cent of the compensation that is required to get that back into tip-top shape. 

So, here are some exclusions that are made to a typical comprehensive insurance policy and hope this posts helps the next time you have an insurance claims to make in case of a mishap. Do remember to always clearly read the terms and conditions of any insurance policy that you may need to sign.

Tracking icon
Would you like to receive notifications with latest news and car deals from IndianAuto?