Common Myths About Standalone Own Damage Car Insurance Debunked

When it comes to vehicle insurance, many vehicle owners believe that purchasing a standalone car insurance policy is unnecessary and complicated. However, with changing regulations and greater flexibility and customisable options from insurers, the standalone Own Damage (OD) policy has become a popular choice among Indian vehicle owners.

Despite this, several myths still surround it, from coverage limitations to eligibility concerns. To help you make an informed decision, let us debunk some of the most common myths about standalone car insurance.

What is Standalone Own Damage Car Insurance?

A standalone (OD) policy provides coverage for damage to your own vehicle during accidents, natural disasters, fire, vandalism or theft. It can be purchased along with the mandatory third-party insurance or from a different insurer, depending on your preferences.

While third-party coverage takes care of the damage or injury caused to others, standalone car insurance safeguards your own car. By combining the two, you can enjoy comprehensive coverage with better control.

Common Myths and the Facts Behind Them

Myth 1: You Don’t Need OD Cover if You Have Third-Party Insurance

Many car owners believe that third-party car insurance is enough since it is mandatory by law. However, third-party cover only compensates for damages caused to others, not to your own car.

If your vehicle is stolen or damaged in an accident, you will have to pay for all the repair costs from your pocket. A standalone OD policy ensures that you don’t face such financial burdens, especially for high-value or new cars.

Myth 2: Standalone OD Policies are Expensive

While standalone OD premiums are higher than third-party rates, they are based on the car’s insured declared value (IDV), age and location. Considering the protection it offers, especially against costly repairs, theft and total loss, it is a worthwhile investment.

Additionally, you can reduce your premium by opting for voluntary deductibles or maintaining a claim-free record to earn a No Claim Bonus (NCB).

Myth 3: Add-Ons are Not Available with OD Policies

Many car owners might think that, similar to third-party insurance, you cannot buy add-ons with OD coverage as well.

However, insurers today offer a range of exciting add-ons such as zero depreciation, return-to-invoice cover, NCB protection, and consumables cover, to name a few. You can enhance your OD cover to make it a comprehensive one.

Myth 4: You Can Buy OD Cover Only with the Same Insurer

This was true a few years ago, but it is no longer the case. Since 2019, the IRDAI has permitted car owners to purchase standalone car insurance policies, even if the third-party liability policy is from a different insurer.

This flexibility allows you to compare plans, switch insurers, and choose the best coverage for your car without being tied to a single provider.

Get Reliable OD Coverage with TATA AIG

TATA AIG offers flexible standalone car insurance plans that allow you to customise your Own Damage cover independently. You can choose from a range of add-ons, including zero depreciation, engine protection and roadside assistance, to customise your plan according to your needs.

Moreover, their intuitive online platform allows for quick digital claim settlements and easy policy management online. Whether your car is new or pre-owned, TATA AIG ensures reliable coverage and strong financial protection, keeping you and your car safe on every road.