What does comprehensive coverage mean for you?
Protecting your assets always has its benefits. What does comprehensive coverage mean for you and your vehicle? This is the exact question we will be answering throughout this article. To help you understand why it is imperative to get coverage.
We are going to try and make this as simple as possible for you. Explaining exactly why you need comprehensive coverage for your vehicle. To fully understand car insurance, you must take a holistic approach:
- Different Types of Car Insurance
- Benefits of Comprehensive Coverage
- Exclusion List to Comprehensive Cover
Choosing the correct insurance is imperative. Many things could happen to your vehicle. With the right coverage, claim approval can occur multiples times. Although each insurer is different, we will give you the information to make an informed decision.
Different Types of Car Insurance
There are three options for vehicle insurance available. By comparing the different plans, you will gain a better understanding of why comprehensive coverage is the best. Other insurance companies might label their policies differently, but we will look at the general terms used.
Comprehensive Car Insurance
Comprehensive insurance is the most extensive coverage available to you and also stipulated as a requirement in your vehicle HP ( Hire Purchase) agreement. Although it is also the most expensive, the rewards are generally worth the amount you pay. This specific policy protects your vehicle against any damage. Whether it’s weather damage, fire, theft or hijacking or crashes your vehicle is covered.
Third-Party, Fire and Theft Cover
This type of insurance is your second-best option. The difference between this option and comprehensive car insurance is the amount of coverage. This policy is cheaper but doesn’t cover nearly as much as comprehensive cover.
The plan will cover any damages or replacements relating to Third parties, Fire or theft. If you crash into someone else, the costs associated with repairing their vehicle will be covered. The issue is the costs for your car, will not be covered. This is the same for if you damage your vehicle.
Third-Party Only Cover
The last cover we will be looking at covers only the third party. This has limited coverage but is also the cheapest cover you can attain. If your vehicle is stolen or damaged by fire or weather, there is no assistance in replacing or repairing your vehicle.
The biggest concern with this cover is when you are in a crash although the policy covers the third party’s vehicle repairs and medical bills. You are left to fend for yourself on any costs you may incur. Making it difficult for you to get back on your feet. Just remember to weigh up the pro’s and con’s when thinking of this option.
Now that you have all the relevant information about the different insurance policies. What does comprehensive coverage mean for you and your asset? Well, we did mention some of the benefits before, but we will make it more transparent.
Benefits of Comprehensive Coverage
Most people make a pro’s and con’s list to make a final decision. We fully understand as any reasonable person would.
To truly understand the benefits, an inclusion list of everyday items covered are:
- Majority of crashes
- Car theft or Hijacking
- Vandalism
- Overall Fire Damage
- Weather Damage
- Falling objects
- Third-party Liability Claims
Unfortunately, depending on the insurer, these items still require an excess to be paid. Each insurer will have different prices associates to different scenarios. These excess amounts are there to keep your monthly premium to a minimum. Find out from your broker or your policy the amount payable.
Exclusion list to the coverage
We would all love for an exclusion list not to exist. Make sure you are aware of the exclusions on your policy by reading the fine print All the benefits listed above will become null and void if you do not follow the law.
Essentially if you cause a crash while under the influence, your claim will be denied. The same goes for whether or not your vehicle is roadworthy, or you don’t have your license on you. Any illegal activity will most probably lead to a claim denial, leaving you to incur the costs.
Besides that, critical factor, different insurance companies might have other items on their list, which they don’t cover. Therefore, you should read and understand your policy before signing:
- Additional Drivers
- Roadside Assistance
- Vehicle Renting
- Radio cover Stolen/Lost Keys
- Windscreen Cover
Take the time to find an insurance company that offers you what you need. It is also vital for you to get the relevant insurance you can afford. Do not overextend yourself financially.
As you can see, there are different approaches as to what does comprehensive coverage mean. Everyone will take a different stance on this topic. No matter the insurance type, once an accident occurs, you need to follow the correct steps to filing car accident claims. This will help avoid any claim denials in the future.
