Do You Need Collision Coverage?

The collision coverage is a car insurance component that secures your vehicle against damage suffered due to a collision with another vehicle or non-vehicular object, such as a tree, pole divider, etc. It pays for the necessary repairs or replacement of parts as a result of the damage sustained by your car.

Note that, in India, it is not available as a standalone collision coverage policy or collision coverage add-on. Instead, collision coverage is bundled with the own damage component of the car insurance plan.

No. In India, collision coverage is not a mandatory requirement by law. The Motor Vehicles Act 1988 only mandates that all vehicles on Indian roads must have a valid car insurance with at least third-party liability cover. However, the own damage cover component of the car insurance, which includes the collision coverage, is completely optional. But, due to its extensive coverage benefits, investing in one is highly recommended.

You can get collision coverage with comprehensive car insurance, which features both third party car insurance and own damage cover. If you have a long-term third-party car insurance, you invest in a standalone OD insurance for exhaustive own damage protection for your car, which also includes collision coverage. So, the decision to get this coverage completely rests upon the shoulders of the car owner.

Under the broader own damage cover component, the collision coverage offers tons of benefits that make it a considerable choice. Here are some of its key perks:

1. Collision-related coverage:

The increasing traffic congestion is one of the main reasons why vehicle-related collisions are quite common in India. Getting car insurance with collision coverage ensures your vehicle stays protected against common collision-related damages.

2. Financial security:

Roads are unpredictable, and accidents can happen to anyone, no matter how experienced the driver is. Car collisions result in expensive repairs, which can drain your savings. However, car insurance collision coverage helps minimise your financial risk by paying for the necessary repairs resulting from collisions.

3. Coverage regardless of fault:

One of the key benefits of collision insurance coverage is that it provides coverage for collision-related damages to your vehicle, regardless of who is at fault. So, whether it's a distracted driver hitting your car or your car colliding with a pole while parking, stay protected in every scenario.

4. Peace of mind:

Knowing your vehicle is financially protected against common collision-related damages, you can enjoy peace of mind and drive with confidence every time you are behind the steering wheel.

Considering the coverage benefits, having collision coverage in car insurance can be a wise investment, especially

1. If you own a new or luxury car:

The last thing that the owners of new or luxury cars want to deal with is costly repairs or replacement of parts after a collision. This is why investing in car insurance collision coverage is highly essential.

2. If your car is leased or financed:

Individuals who got their car on a lease or bought it on a loan should consider getting car insurance with collision coverage. Although not legally mandatory, the lender often requires you to have a car policy with own damage cover to protect their financial interest in the vehicle until the lease term ends or the loan is entirely repaid.

3. If you want comprehensive protection:

Individuals who want comprehensive damage protection for their vehicle should consider getting car insurance with collision coverage. It not only secures their car against damage but also minimises their financial risk during collisions. While on the topic of collisions, do check out our blog on Car Crash Tests: Ensuring Safety Through Simulated Collisions.

4. If you are a frequent driver:

Individuals who drive their car frequently, especially those living in high-traffic areas, have a higher probability of dealing with minor accidents, including fender benders, bumps, and scratches. For them, car insurance with collision coverage can be highly beneficial.

Here’s how you can buy car insurance with collision coverage in India:

1. Visit your preferred insurer’s website or mobile app.

2. Go to the car insurance section and enter the vehicle details, such as registration number, make & model, etc.

3. Enter your basic contact information to get a quote.

4. Select between standalone OD or comprehensive insurance.

5. Customise your policy by adjusting tenure, add-ons and IDV as needed.

6. Get the final quote, verify policy details and pay the premium online to complete it.

In India, you don’t have to separately add collision coverage to your car insurance. It comes included under the base standalone OD and comprehensive car insurance plan’s own damage component.