Why Opt for a Standalone Own Damage (OD) Policy

According to the Motor Vehicle Act, having third-party vehicle insurance is a mandatory requirement for every vehicle owner in India. However, what would happen if your vehicle faces any damage due to your own actions?

Here is when a Standalone Own Damage policy comes into play, offering tailored protection for your vehicle. So if you are looking for a cost-effective option to cover the damages of your vehicle, read this blog till the end.

What is a Standalone Own Damage Policy?

Also known as OD insurance, a Standalone Own Damage policy is specifically designed to financially safeguard your vehicle against potential risks. These include damage from natural disasters, accidents, vandalism, theft etc.

During such unfortunate scenarios, your Standalone OD policy shall provide you with financial coverage to cover and compensate for the loss of your vehicle based on the terms and conditions of the policy.

Nevertheless, you must note that Standalone Own Damage insurance focuses only on safeguarding your vehicle and hence you need to purchase this separately from third-party car insurance. Also, such plans feature certain exclusions like damages caused due to drunk driving, third-party liabilities, driving without a licence etc.

Who Should Get a Standalone Own Damage Insurance?

Individuals belonging to the following categories can consider opting for Standalone Own Damage insurance:

• You Have a Third-party Liability Only

While third-party liability insurance only provides coverage for damages your vehicle caused to a third-party property, OD insurance covers the damages of your vehicle. Thus, even though having third-party coverage is compulsory, you can also have the OD one to ensure better protection.

• You have Purchased a Vehicle.

If you have just purchased a new vehicle, you will have to buy an insurance plan for the same. Besides, damages to a newly purchased vehicle and repair expenses can cost you a lot. Thus, it is better to have OD insurance to avoid bearing such expenses.

• You are a New Driver

In case you have just secured your driving licence, you must have a Standalone Own Damage insurance to ensure your vehicle is financially protected. This is highly because the chances of damaging the vehicle tend to be higher for new drivers than the experienced ones.

• You Own a Luxury/Expensive Vehicle

It can cost you a lot to repair luxury or expensive vehicles. Thus, it is always better to stay financially secure with your costly vehicles which enable you to save a substantial amount.

What are the Benefits of the Standalone Own Damage Policy?

Go through the following points that feature some of the major benefits of having Standalone Own Damage insurance:

• Financial Protection Of Vehicle

While you are protected in case you cause any damage to third-party property, you also need to be covered for the damage caused by your actions. It ensures better financial protection during unforeseen circumstances like theft, calamities, accidents etc.

• Cost-effective Option

Purchasing a separate Standalone Own Damage insurance enables you to settle for a lesser price than what you might have spent on comprehensive coverage.

• Enhanced Coverage

By tailoring your needs within the OD insurance plan, you can receive enhanced financial coverage, empowering you to deal with any potential mishap with your vehicle.

• Better Flexibility

You can have the flexibility to purchase Standalone Own Damage insurance separately or along with a third-party liability one. You can also include additional benefits like engine protection cover, zero depreciation cover etc. which you cannot in the case of third-party insurance.

What Does Standalone Own Damage Insurance Cover?

Here are some of the instances that will be covered in your Standalone Own Damage insurance policy:

• Damages in Accidents

Whatever damage your vehicle faces due to accidents, your Standalone Own Damage insurance shall cover all the expenses for the repair.

• Fire and Explosion

In case your vehicle comes across damages due to any explosion or accidents caused by fire, you shall not face financial setbacks in repairing the losses. Your OD insurance shall cover all the expenses you have to bear for the same.

• Man-made Calamities

Your vehicle can also get damaged due to calamities that are man-made. These include vandalism, riots, strikes etc. Your OD insurance shall cover those damages as well.

• Theft of Vehicle

If you come across unfortunate scenarios where your vehicle gets stolen, you can get financial coverage to cover your loss due to theft.

• Total Loss

You will also be financially covered in your OD insurance plan in case you come across losses when your vehicle gets damaged beyond repair.

The Bottom Line

To wrap it up, having Standalone Own Damage insurance is a cost-effective alternative to comprehensive coverage. You are also allowed to explore various options and tailor the OD coverage as per your needs. Besides, multiple insurance providers offer Standalone Own Damage insurance at affordable rates online. However, make sure to research and ensure the reliability of the company before purchasing the plan.