Definition of Comprehensive Car Insurance?
Comprehensive Car Insurance is a kind of cover of your car that will protect your car from damage against some certain events. These events include fire, theft, vandalism and falling objects. Well it is also said as fully comp cover as it is one of the highest level of car cover or protection your vehicle can get.
However the comprehensive auto insurance comes along with deductible that you volunteer to pay and other is the amount which you are obliged to pay before the insurance company will pay the remainder.
Furthermore it is always advisable to buy the comprehensive insurance policy. Since if you will buy it then it will cover the insured, vehicle and the third party too all this in a single policy. In addition to this, if you take comprehensive insurance for your car then you can claim for insurer that was deemed to be at your fault.
Another way of saying is that with comprehensive motor insurance you can sit back with free mind. As now you won’t have to pay for the expensive repairs caused due to some accident etc. Hence you will just have to pay for the voluntary and compulsory excess. Such an insurance policy will cover all the risks which are covered under the Motor Vehicles Act.
Some of the reasons for losses or damages caused to the vehicle under the Act are:
- Flood, cyclones, typhoon, hurricane, storm.
- Accident, fire.
- Theft, strikes, riots and burglary.
- Terrorism and Malicious acts
- Lightning, Explosion, self-ignition
- Floods and earthquake
- Transit by road, rail, watercraft, air, elevator, etc.
- Towing charges incurred after an accident
Comprehensive Car Insurance Excludes Certain Loss or Damage they are:
- Damage caused to the tyres unless even the vehicle is also damaged.
- Driver driving with the intake of alcohol at the time of accident.
- A person driving car with invalid driving license and met with accident.
- Wear and tear or mechanical breakdown.
Is Comprehensive Insurance Expensive Then Other Insurance Policy?
It is believed or a myth that comprehensive insurance policy is always expensive then any other insurance policy. This might be a case where comprehensive insurance will be expensive but not in all the cases.
If you will compare comprehensive motor insurance with other insurance policy like third party insurance. In that case you will find that comprehensive insurance policy will be cheaper than third party insurance.
The cost of comprehensive motor insurance is cheaper because high-risk driving people in order to reduce the cost go for third party insurance. Now automatically the number of claims in third party insurance will he higher. Hence leading to increase the overall cost of the insurance cover.