Is Own Damage Insurance Mandatory
Wednesday, September 20, 2023
Edit
Is Own Damage Insurance Mandatory?
What is own damage insurance?
Own damage insurance covers the damage of your vehicle due to an accident, theft, flood, fire, or any other natural or man-made calamity. The coverage is provided by an insurance company to the policyholder against loss or damage to the insured vehicle. The insurance company compensates the policyholder for the repair or replacement of the insured vehicle. It is important to understand that the coverage provided by this type of insurance is only for the damage of the vehicle and not for any liability arising out of the accident.
Is Own Damage Insurance Mandatory?
In most parts of the world, own damage insurance is not mandatory. However, it is recommended by industry experts as it provides financial protection in case of accidents or damage to your vehicle. There are certain states in the US, where this type of insurance is compulsory. In some states, it is compulsory to have both comprehensive and collision coverage, while in some states only comprehensive coverage is required to be taken.
What is Covered Under Own Damage Insurance?
Own damage insurance covers the cost of repairs or replacement of the vehicle due to an accident, theft, flood, fire, or any other natural or man-made calamity. The coverage is provided by an insurance company to the policyholder against loss or damage to the insured vehicle. The policyholder is also eligible for compensation in case of total loss of the vehicle. However, the coverage does not extend to any liability arising out of the accident.
What is Not Covered Under Own Damage Insurance?
Own damage insurance does not cover any damage caused by the policyholder’s own negligence. This includes damage caused by driving under the influence of alcohol or drugs, or any other illegal activity. It also does not cover any damage caused by an uninsured driver. Own damage insurance does not cover any damage arising out of wear and tear of the vehicle or any consequential loss arising out of the accident.
What are the Benefits of Own Damage Insurance?
Own damage insurance provides financial protection in case of accidents or damage to your vehicle. It also provides peace of mind as the policyholder is assured of compensation in case of any damage to the vehicle. Own damage insurance also helps in reducing the burden of huge repair costs in case of an accident. It is also beneficial in case of total loss of the vehicle as the policyholder is eligible for compensation up to the insured amount.
Conclusion
Own damage insurance is not mandatory in most parts of the world, however, it is highly recommended by industry experts for its benefits. The coverage provided by this type of insurance is only for the damage of the vehicle and not for any liability arising out of the accident. The policyholder is eligible for compensation in case of total loss of the vehicle. Own damage insurance provides financial protection and peace of mind in case of any damage to the vehicle.
Own damage motor insurance can now be bought separately | Mint
Own Damage Cover in Car Insurance Policy
Why Should I Have To Use My Own Insurance If I Wasn’t At Fault For A Crash?
Water Damage Archives - Gold Coast Public Adjusters
6 Steps to File a Storm Damage Insurance Claim [Infographic]
![6 Steps to File a Storm Damage Insurance Claim [Infographic]](https://www.insuranceclaimconsultants.com/wp-content/uploads/2018/03/ICC-6-Steps-to-File-a-Storm-Damage-Insurance-Claim.jpg "Is Own Damage Insurance Mandatory")
