Own-damage cover

Own-damage cover pays for damage to, or theft of, your own vehicle, up to its IDV. It’s optional, unlike third-party insurance, and claim-free years earn a no-claim bonus discount on it.

What it covers

Own-damage, often shortened to OD, is the half of motor insurance that looks after your vehicle. It pays to repair accident damage, and it pays out if the vehicle is lost to fire, a natural event like a flood, or theft. The most it will ever pay is the vehicle’s IDV, the sum insured, so a total loss or theft is settled at the IDV, while a repair claim is settled at the cost of repair after any depreciation.

OD plus third party

Own-damage is rarely sold alone: combined with the compulsory third-party insurance, it makes a comprehensive policy, the cover most people mean by “car insurance”. Third party protects others; own-damage protects you. You can also tune OD with add-ons like zero depreciation.

When to buy it

By law you only need third-party cover, but that leaves your own vehicle unprotected. Own-damage is worth it for most vehicles with real value, and a lender usually insists on it while a vehicle loan runs. For a very old, low-value vehicle, some drivers drop it. See motor insurance explained.