What is Own Damage Car Insurance & How does it work?

Investing in a car is expensive and having regular maintenance will add some more additional expenses. Own damage car insurance will be very helpful in situations of damage when they occur due to natural calamities such as floods, earthquakes, storms and others. Even human-made disasters are also covered such as vandalism, terrorist attacks, riots and etc. are covered for accidents. 

Standalone own damages can be afforded and it offers coverage for damages that are not covered even by third party insurance coverage. It is a good option for new vehicle owners to purchase such a policy for avoiding damages that are unreasonably high for small and big damages which occurred to the vehicle. 

Calculating the premiums for auto insurance can be expensive, especially during the time of renewal. Before purchasing the policy, you have to make sure that you understand the risks and advantages of different plans before selecting a particular one. 

Own damage car insurance means damages to your car. The advantage of this policy is to cover the losses or damages which are natural and man-made. It will provide coverage for repair costs of cars. This policy is also known as a standalone own damage policy. On the other hand, an insurance policy that offers damages done to the third party is known as third-party insurance. 

In third-party insurance, If you got into an accident and damages incurred to both the vehicles involved,  then your insurance company will cover repairs of the other car and you have to bear repair expenses done out of your pocket. A comprehensive insurance policy will cover both the own damages and third-party damages as well. 

Damages covered

Own damages, also known as a standalone own damages insurance policy, is for those to help you. The policyholder will get coverage on the loss suffered to the car. Damages that are covered are listed below. 

Accidental damages

Accidental damages are caused by external factors which means the event of a collision happening is sudden or unintentional damages to the car are considered as accidental damages. 

Burglary

If the car is damaged due to an attempt of theft or theft and due to housebreaking wherein the car has incurred severe damages to the internal and external parts of the vehicle. The damages should be due to the attempted burglary. The standalone own damages insurance cover will provide protection to the car. On the other hand, if the car is stolen then it will be considered a total loss. 

Total loss

When the car is lost due to theft or irreversible damages or due to extensive damage then the insurance company will write it as a total loss. Your own damages car insurance will provide the coverage for total loss and you will be getting the compensation for the damages. 

Fire explosions

The fire explosion or lighting or implosions and self-ignition are due to the fire in the event of an accident. The explosions resulted in damages to the car and these get covered in the own damage insurance policy. 

Natural calamities

The natural calamities are floods, cyclones, storms, and others. If the car gets damaged because of natural calamities then the coverage under own-damage car insurance will protect you. 

Rockslides and earthquakes

If the car is damaged because of the rock slides from the event of an earthquake or a landslide then the own damages insurance policy will protect the policyholder. 

Transportation

If there is the transport of vehicles by road, rail or waterways and there is an event of damage to the vehicles. The damages may have caused dents and scratches to the car during the transport of the vehicles. Your own damaged car will protect your vehicle from damages that occur during the transportation.

Terror attack

The losses which are deliberately caused due to human misbehavior are covered under their own damages. The terror events include riots, strikes, damages and others. This will protect against losses that are due to terrorism, vandalism and others. 

Conclusion

Own damage car insurance cover is very significant as it will take care of the car damage losses. Having this policy will reduce your out of pocket expenses. If you have third party car insurance it will protect you against third party legal and financial liabilities. It is suggested for the car owners to have their own damage car insurance which will protect you against your own damage to the car.