What’s ODP in a car insurance


I have just brought my first car and was seeking to buy car insurance. I cannot under what’s ODP in a car insurance.


ODP is the commonly used term for Own damages premium which is the amount of money you pay towards your car insurance cover. With own damages cover in place you secure your vehicle against losses from fire, explosion, earthquakes, floods and other natural calamities. The higher the ODP the less is the risk of the insurance company and hence lower the premium.


ODP is own damage premium. This term comes into picture ,when there is a damage to the policy holder’s own car and not damages to third party. Here the insurance cover’s the claim arising out of insured’s own car, hence the name own damage.


Hi Nisa,

ODP or Own Damage Premium (ODP) is the premium that you pay for insurance cover on your car. ODP insures your car against any loss caused by events outside your control, such as earthquake, fire, tsunami etc. With Own Damage Premium, you’re secured, but remember that the ODP varies according to the model, cubic capacity and geographic zone of your vehicle. You must ask your insurer about this. Note that in case of Car Insurance, third party cover is mandatory while ODP is optional. However, you will need Own Damage cover to claim damages to your car. In that sense, it is advisable to go in for a comprehensive Car Insurance cover. Want to check out Car Insurance plans? Click here.

BB Expert