2094*By clicking on You, Agreed to our Privacy Policy & Terms of use *Disclaimer
- 5.5 CoreRegistered Consumers
- 50+Insurance Partners
- 3.4 CorePolicies Sold
Many people in India drive with only third-party car insurance , and that leaves their own car completely unprotected. In fact, more than half of all vehicles on Indian roads don’t have any cover for their own damage. So, if the car gets hit, scratched, or damaged, the repair cost has to be paid from their own pocket.
This is exactly why the Stand-Alone Car Insurance Policy has become so popular.
Think of it as giving your car its own safety cover without buying a full comprehensive plan. You can add protection for your car without changing your third-party insurance. It is easy, flexible, and budget-friendly, perfect for anyone who wants better protection without spending too much.
In this blog, we’ll talk about what a Stand-Alone Car Insurance Policy is, how it works, why more car owners are choosing it today, and whether it is the right pick for you.
What is Stand-Alone Car Insurance?
Standalone Own Damage (SAOD) Insurance, also known as Own Damage Insurance, protects your own car from damage. It covers damage caused by natural disasters like storms, earthquakes, and floods. It also protects your car from man-made problems like riots, vandalism, theft, and accidents.
This type of policy pays for repairs that a regular third-party insurance policy does not cover. It is a good choice for people who want to protect their new car or avoid paying high repair costs after an accident.
However, you can only buy Own Damage Insurance if you already have third-party car insurance. If you already have a third-party policy, you can easily add this insurance to protect your own car from unexpected damage.
Why Choose a Standalone Own Damage Insurance Policy?
Here are the simple reasons why this type of insurance is useful:
1 Covers many types of damage
This insurance protects your own car from accidents, theft, fire, vandalism, floods, storms, and other natural disasters.
2 Covers your car even if it is your fault
Third-party insurance only pays for damage caused to others. Standalone Own Damage Insurance pays for damage to your own car, no matter who caused the accident.
3 You can add extra protection.
You can buy add-ons to make your policy stronger, such as:
- Zero Depreciation Cover
- Engine Protection
- Key & Lock Cover
- Roadside Assistance and more.
4 You can get discounts.
You may get discounts if:
- Your car has safety devices
- You drive safely
- You renew your policy on time
You can also use your No Claim Bonus (NCB) to reduce your premium when renewing your policy.
What is Covered in an OD Car Insurance Policy?
The OD car insurance covers:
- Accidents If your car is involved in an accident, the insurance will pay for repairs and maintenance within the area mentioned in the policy.
- Theft If your car is stolen, the insurance will cover the loss, up to the amount your car was insured for. But you can only get this if the whole car is stolen, not just parts of it.
- Man-made Disasters If your car is damaged by events like riots, vandalism, or terrorism, your insurance will cover the cost of repairs.
- Natural Disasters If your car is damaged by natural events like earthquakes, floods, or tsunamis, the insurance will cover the repair costs.
What is Not Covered in Own Damage Car Insurance Policy?
Here are the main things not covered by own damage insurance:
- If you drive when you are drunk or on drugs, the insurance will not pay for any damage or injury.
- If you change or modify your car in ways the insurance company does not allow, they may not pay for any loss or damage.
- If you use your personal car for business, like delivering goods or carrying passengers for money, the insurance may not cover damage or injury.
- If you use your car to do something illegal or against government rules, the insurance will not cover any damage.
- The insurance does not cover normal wear and tear, like mechanical problems or regular maintenance.
- If you use your car for racing or dangerous activities, the insurance will not cover the damage.
- If you damage your car on purpose or damage someone else’s property on purpose, the insurance will not pay.
- If your car is in an accident caused by a minor driver or someone who does not have a valid licence, the insurance will not cover it.
Extra Covers You Can Add to Your Own Damage Car Insurance
You can make your OD car insurance stronger by adding extra coverage. These add-ons cost a little more money but give you better protection.
1 Nil Depreciation Cover
Nil Depreciation Cover (also called Zero Depreciation or Bumper-to-Bumper) is an extra insurance cover that pays the full cost of new parts after an accident. It does not cut any money for the parts getting old or worn out.
2 NCB Protect Cover
The full form of NCB is No Claim Bonus. It is a discount you get for not making claims. With this cover, your NCB stays safe even if you make 1–2 small claims. It helps you keep your premiums low in the future.
3 Consumables Cover
This cover pays for small items used during repairs, like nuts, bolts, oil, and grease. Normally, insurance does not pay for these items. With this add-on, you don’t have to spend money on these small repair materials.
4 Engine Protect Cover
This cover pays for damage to your car’s engine due to water, oil leakage, or similar issues. Regular insurance does not cover engine damage. It is very useful if you live in flood-prone or rainy areas.
5 Roadside Assistance Cover
If your car breaks down on the road, this cover gives you help immediately. You can get services like towing, tyre change, minor repairs, or fuel delivery. It is helpful during emergencies, especially when travelling.
6 Key and Lock Protect Cover
If your car keys or lock get lost, damaged, or stolen, this cover pays for repair or replacement. It saves you from paying high costs for new keys or locks. This add-on is very useful for cars with expensive smart keys.
What is the Own-Damage Car Insurance Premium?
The own-damage car insurance premium is the money you pay to the insurance company to protect your car from damage. The amount you pay depends on things like your car’s value (IDV), brand, age, location, and any extra covers you choose. A higher risk usually means a higher premium.
How is the Own-Damage Car Insurance Premium Calculated?
You can find the premium using this simple formula:
IDV × (Insurance Company’s Premium Rate) – No Claim Bonus + Add-on Costs + GST (18%)
- IDV (Insured Declared Value) is the highest amount you can get if your car is stolen or totally damaged.
- You can calculate IDV by subtracting the depreciation (loss of value due to age) from the car’s original price.
Factors That Affect Your Own Damage Car Insurance Premium
Many things decide how much you pay for OD car insurance:
| Factors | Description |
|---|---|
| Insured Declared Value (IDV) | Higher car value = higher premium. Lower car value = lower premium. |
| Car’s Age | Older cars have lower value, so the premium is also lower. |
| Make and Model | Expensive or luxury cars cost more to fix, so their premium are higher. |
| Location | Areas with more thefts or accidents have higher premiums. |
| Engine Capacity | Cars with bigger engines usually have higher premiums. |
| Add-On Covers | Extra covers (zero dep, engine protect, etc.) increase the premium. |
| No Claim Bonus (NCB) | If you make no claims, you get a discount, which reduces the premium. |
Conclusion
Your safety and peace of mind depend on having good financial protection. This is why an Own Damage (OD) cover is very important. It lets you use your car without worry, because if something happens to you or your vehicle, the insurance will help pay for the repairs and other costs. Car repairs and hospital bills can be very expensive, but with a good OD policy, you get support during emergencies and avoid big money problems.
FAQs
It is insurance that protects your own car from damage. It pays for repairs if your car is damaged in accidents, theft, natural disasters, or man-made problems like riots and vandalism.
Yes. You must already have a third-party car insurance policy before buying OD insurance.
It covers:
- Accidents
- Theft of the car
- Natural disasters like floods or earthquakes
- Man-made damage like riots, vandalism, or terrorism
It protects your car from damage, even if the accident is your fault. It saves you money on repairs and gives peace of mind during emergencies.
2094*By clicking on You, Agreed to our Privacy Policy & Terms of use *Disclaimer
- 5.5 CoreRegistered Consumers
- 50+Insurance Partners
- 3.4 CorePolicies Sold
