Understanding Insurance Policies

Posted on: 19 May 2022

The law requires that every car owner obtains at least third-party insurance for their vehicle. Unfortunately, a third-party cover only protects you against legal liabilities after an accident and doesn't protect your car against damage costs, total loss, or theft.

This is where comprehensive insurance comes in. In addition to the benefits of third-party cover benefits, a comprehensive plan also covers against flood or fire damage, natural disaster, collisions, and theft. Below are more benefits of a comprehensive cover. 

Offers Superior Coverage to Your Car

Compared to third-party liability cover, a comprehensive cover compensates you if your car gets stolen or sustains damage after an accident. Here, your insurer pays all the expenses for repairing your insured car. The insurance company also reimburses you if you choose to repair your own vehicle. Additionally, comprehensive coverage pays for damage you cause to other vehicles. 

Think about how you would get around without a car. If the daily commute to work would be a challenge, and you can't buy a new car right away after an accident, you should consider a comprehensive cover. Keep in mind that some insurers offer a new-for-old replacement in case you bought a new car in the past few years and it becomes a write-off. 

Covers Your Vehicle Against Fire, Theft, and Vandalism

A comprehensive compensates you for fire damage if your car self-ignites or ignites due to an internal explosion or lightning. In this situation, your insurer pays you up to your car's Insured Declared Value (IDV).

The same applies if your car gets stolen.  Your insurance company compensates you with an amount equivalent to the IDV. In most cases, your insurer offers an emergency car rental for some time before you replace the stolen vehicle. 

If your car gets vandalized during a riot or civil disturbance, your insurer will reimburse you for the repair cost of your vehicle. For a completely damaged car, you will get an amount equal to your car's market value. Better still, comprehensive insurance covers damage from falling objects, like tree branches, and natural calamities such as floods and earthquakes.

Comes With Optional Benefits You Can Add to Your Cover

A comprehensive plan provides an option to enhance your coverage with additional covers, which the insurance company avails when you pay an additional premium. These add-on covers help you handle certain situations easily. Some add-ons you can buy with your comprehensive insurance are roadside assistance, passenger cover, zero depreciation, and no claim bonus protection. 

Note that some insurers can't allow you to purchase these extra covers with third-party insurance or on a stand-alone basis. You can only purchase them along with your comprehensive plan to offer some bit of customization to your cover.

Comprehensive auto insurance offers your car all-around protection. If you want to purchase this insurance cover for your vehicle, speak to a knowledgeable car insurance agent.