Third-party motor cover is compulsory. Comprehensive cover adds protection for your own vehicle against accident, fire, theft and natural calamity. The gap between the two is where almost all of your financial exposure sits.
Add-ons that change the outcome
Zero depreciation removes the deduction applied to replaced parts. Engine protection covers water and oil-leakage damage that the base policy excludes. Return-to-invoice pays the original invoice value on total loss rather than the depreciated IDV. Roadside assistance and consumables cover are cheap and frequently used.
IDV and no-claim bonus
The Insured Declared Value is the maximum payable on total loss. Setting it artificially low to reduce premium reduces your recovery. The no-claim bonus accumulates for each claim-free year and transfers with you when you change insurer — so do not let a policy lapse.
At claim time
Inform the insurer before repairs start. Register an FIR for theft or third-party injury. Use a network garage for cashless repair where possible, and do not attempt to restart a flooded engine — consequential damage is excluded.