8 Critical Benefits of Having a Comprehensive Insurance

About the Author:

Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.

Purchasing a motor insurance policy will provide cover for your vehicle. Nonetheless, a comprehensive plan is what will give extra protection to your car. This option will assure you of financial security should your car experience any risks.

As the name implies, comprehensive insurance covers nearly all aspects of a car accident. The insurance plan protects your car from theft, fire, vandalism, human made and natural catastrophes, falling objects, etc.

Property damage, injury, or death of a third party is also insured under a comprehensive policy.

Some exclusions from a comprehensive insurance plan include mechanical or electrical breakdown, wear and tear of vehicle parts, depreciation, and damages caused by driving while intoxicated.

The following are eight advantages of having a comprehensive insurance cover.

1.    Offers third-party liability cover

Third-party liability coverage is part of a comprehensive policy that compensates the third party following physical injury or property damage caused by your car.

2.    It covers theft of car parts

The theft of car parts is increasingly becoming common, particularly in urban areas. In this respect, the thief may not wholly strip the vehicle but removes parts like side mirrors, head and tail lamps, bumpers, etc.

If you weren’t aware, selling spare parts is a lucrative trade in the black market. Having a comprehensive policy will ensure you're compensated if parts of your vehicle get stolen.

3.    It covers accidental damage

A comprehensive policy offers compensation in case of an accident involving another vehicle. The damages done to your car during an accident will fully be repaired under the policy. This benefit comes in handy if your vehicle experiences substantial damage.

A comprehensive plan doesn’t cover auto collisions alone. If you hit a deer on the road, the policy will help protect you and any damage done to your car due to the crash.

Damage from falling objects, e.g., tree branches, is also included under accidental damage. The policy covers all damages resulting from non-vehicle collisions.

4.    The cover offers add-on cover options

The comprehensive motor insurance policy typically offers the option of enhancing the cover to include additional risks, better known as add-ons.

A comprehensive insurance policy may not always include all crucial liabilities. Add-ons are an option when you need extended hotel insurance. These options cannot be purchased alongside a third-party plan or on a standalone basis.

The alternatives cover exceptions of the comprehensive policy and lend a bit of customization to your motor insurance cover.

Examples of insurance add-ons include:

•    Passenger cover

•    Garage crash cover

•    Return to invoice

•    Roadside assistance

•    Engine protection

•    Outstation emergency, e.g., car breakdown

5.    It covers car theft

What would you do if you exited a restaurant only to find your car missing from the parking lot? You will undoubtedly be stranded and devastated. You may not be able to purchase one right away either.

On the rare occurrence that your car is stolen, comprehensive insurance covers the vehicle's specified value at the moment of theft.

6.    Covers fire damage

Comprehensive car insurance protects your car if it catches fire. This plan covers your vehicle from an explosion, lightning, self-ignition damages, etc.

7.    Provides calamity cover

Natural calamities are usually rare and unpredictable. Even so, cities have experienced more hurricanes and flooding in the recent past than ever before. A comprehensive policy covers such natural disasters, including damages from earth tremors, hail, and tornadoes.

Human-made catastrophes such as riots, structure failures, explosions, and terror attacks are also insured under comprehensive coverage.

8.    It provides a courtesy car

Many insurance companies provide courtesy cars as a standard under your policy. A courtesy car is offered to you during the period when your vehicle is undergoing repairs following an accident.

The courtesy vehicle enables you to go about your business as usual while your car is repaired. The period over which you’ll possess the courtesy car will vary depending on your cover details.

However, a courtesy car may not always come packaged within a comprehensive plan. In some cases, you may have to purchase it as an add-on.

Conclusion

A comprehensive insurance cover offers a host of benefits from third-party liability cover to car theft compensation. The policy assures you of financial security on the occurrence of the risks insured.