If you are planning to buy a car, then getting a comprehensive car insurance is one of the main factors that you must consider before deciding on buying. A comprehensive car insurance plan is basically a bundle policy which provides coverage for both the physical damage and loss sustained by both parties in the accident. It also contains additional third-party liability insurance and comprehensive coverage for both the insured car/car and third-party damages. This plan covers for both the drivers and the owners of the vehicles. The insured car owner should be the one who has the title to his vehicle.
In order for your car to be covered in a comprehensive car insurance policy, it must meet certain conditions. The coverage provided in a comprehensive car insurance policy varies from one company to another. For example, the coverage provided may not be same as the coverage provided under the collision insurance plan. Therefore, the two coverage plans must be compared before purchasing.
Most comprehensive car insurance policies offer a no-fault zero-depreciation cover
The cover under this cover is provided when your car is damaged or stolen. The policy will pay the cost of repairs for both the car and the damages caused due to the accident. In case your car is damaged beyond repair, then the damaged car is covered with a recoverable damage cover. It is important to note that the recovered car must have the capacity to be driven and must meet certain minimum safety tests before being declared a total loss.
Another feature of a comprehensive car insurance plan is the no-fault pay-outs. This type of cover protects you from paying excess or if there are damages caused due to natural disasters. Natural disasters include fire and theft. This policy covers the costs for damages caused due to natural disasters.
Comprehensive car insurance covers different types of liabilities. Third-Party Liability covers the losses caused due to injuries or damage to properties by another person or his property. Injury also means any bodily injury, sickness, disease or death sustained by a third party. Car accidents are considered to be third-party liability. Fire, theft and storm damage are considered to be first-party liabilities in most countries.
In case your vehicle is stolen, your coverage will include compensation for its repair
The same applies to damage caused by a fire. If you own a boat or car, you can add-ons such as insurance for liability for damage to an insured’s boats, cars and homes. In addition, you can take out add-ons like cover against vandalism, if your vehicle is used for business purposes. Similarly, you can add-ons for medical expenses and rehabilitation expenses.
Comprehensive car insurance is usually very expensive because it is designed to provide complete cover against natural disasters. It can provide emergency services for people who have been seriously injured in natural disasters such as hurricanes, tornados and earthquakes. The policy must have the provision of replacing your vehicle if it meets with an accident that is not your fault. For instance, if you meet an accident on your way to work, and the company’s building is damaged, comprehensive coverage will pay for replacement of the building.
Collision insurance, on the other hand, provides coverage for damages caused during collisions. It usually comes as part of comprehensive coverage. There are many kinds of collision policies. You can choose between collision insurance for drivers who own light vehicles and those who own big trucks. There is also insurance for damages caused due to vandalism, theft and fire.