Imagine this scenario. You are going out of your home for office in the morning. You open the door of your car and notice a cricket ball has crashed through your windshield. You mentally calculate the costs of repairs since you have no insurance policy. And leaving your windshield unprotected also seems to be risky. You are now in a fix as to how to go about your expenditure.
A comprehensive car insurance policy is the best kind of protection you can provide your car with. It is much better than a basic third-party car insurance policy. A comprehensive car insurance policy provides extensive coverage and additional services.
This policy is called a comprehensive plan because it provides coverage for the damages to your car, third-party legal liability, theft, along as well as personal accident coverage. The coverage can also be boosted by selecting additional covers such as engine protector, accessories cover, medical expenses, zero depreciation cover, etc. This cover is quite famous as it offers full-fledged coverage and it makes your mind stress-free.
Comprehensive Car Insurance Coverage
Every accident is different, and a car insurance comprehensive coverage protects your car from any incident except collision. It also provides coverage for losses experienced during an accident. Let’s look into the benefits of car insurance comprehensive coverage.
- It is the topmost level of protection you can give to your car.
- With a car insurance comprehensive coverage, you can claim for losses incurred in situations where you are found to be at fault in event of an accident.
- It also provides coverage for lawsuits including legal fees brought against you as a result of an accident.
- It will give you peace of mind by protecting you financially. In case your car is written off, you will be given financial aid.
- Unlike third-party insurance, it will provide coverage for damages caused to your car during an accident.
What does car insurance comprehensive coverage provide?
It is always better to have a full grasp on the inclusions and exclusions in your car insurance policy. You should read the policy details very carefully. The situations covered in a car insurance comprehensive coverage are:
- Damage caused by natural calamities or extreme weather like flood, earthquake etc.
- Fire, theft or vandalism.
- Any third party liability and damage like broken windshield of your car caused by falling objects such as trees, rocks etc.
- Any damage caused by an animal.
- Damage or destruction to your car caused by any act of civil unrest such as mobs or riots.
What does car insurance comprehensive coverage not provide?
If your car encounters damage due to a collision, then a car insurance claim cannot be made unless you have a comprehensive car insurance. There are a couple of things that are excluded from a car insurance comprehensive coverage.
- Depreciation cover
- Wear and tear of car
- Electrical or mechanical breakdown of car
- Damage to car due to drunk driving or drug intake
- Impairment of tyres and tubes. It may differ from company to company
- Any losses to the car caused by war, mutiny or nuclear risk
Although comprehensive car insurance offers more coverage than a Third-party cover, it is not always that it is more expensive. It is advisable to compare comprehensive car insurance policies online to check what suits your needs.
The difference between comprehensive coverage and full coverage
There is an important difference between comprehensive coverage and full coverage. Most insurance companies do not offer anything called “full coverage,” as in, there is no single car insurance policy that covers every type of damage.
In other words, comprehensive insurance is an optional coverage that can be added to your state liability insurance which provides additional protection for accidents not caused by a vehicular collision. What is advisable is instead of getting a single, or one super policy, it is best to blend different types of coverage. You can even read and learn more about car insurance comprehensive coverage and get a quote, so you can build a custom policy that’s right for you.
Is Comprehensive Coverage Mandatory or Optional?
Comprehensive coverage is additional and not part of the state minimum requirement for automobile insurance.
However, if you have a lease on your vehicle, the lender or finance company may require you to purchase full coverage for your vehicle. It will also require that you include comprehensive coverage.
When to Purchase Comprehensive Insurance Coverage
If you have a car on lease, you will be required to purchase comprehensive insurance coverage, even though it may not be a requirement by minimum car insurance state laws. The leasing company will make sure your vehicle is fully insured while you still owe money on your vehicle.
A car insurance comprehensive coverage is an absolute necessity if you want to protect yourself from extra expenditure and keep your car in top condition.