New Delhi, Aug. 16 -- Every vehicle owner must have third-party motor insurance, but this mandatory cover protects only against damage or injury caused to other people. Damage to your own vehicle is covered only when you have an Own Damage (OD) policy. Many motorists avoid OD cover because it increases the upfront premium. However, it can provide crucial financial protection when a vehicle is damaged by floods, heavy rain and other natural calamities.

An OD policy can cover exterior and structural damage, including dents and smashed body panels caused by uprooted trees, falling poles or other objects. It can also cover interior and electrical damage, such as water entering the cabin and damaging electronic components during waterlogging....