Comprehensive car insurance is the most popular insurance option for expensive vehicles. Though it is costly than the third-party insurance, it is best for you if you can’t afford to repair or replace your car by yourself.
Before we move on to the importance of comprehensive car insurance, let’s understand what it is.
What Is Comprehensive Car Insurance?
Comprehensive car insurance is premium insurance that offers a complete package. In simple words, it covers any damage to the vehicle and injury sustained by its occupants, which also includes accidents and other mishaps.
Benefits of Comprehensive Car Insurance
Though costly, it could prove beneficial to you in the long-term. Imagine the maintenance your vehicle will require after three or four years.
1. Damage to your vehicle due to Accidents:
A minor error in judgment could lead to significant accidents, leaving your vehicle completely damaged. No insurance covers 100% of the damage to accidents. Third-party car insurance covers only 70-80% of the total damage. Moreover, they don’t cover all the parts of the vehicle, unlike comprehensive car insurance. No matter how many times your vehicle gets hit, you’re covered.
2. Damage to your vehicle due to Fire:
The hardest thing to do is watch your favorite car blow up in a fire. You can save your car from getting entirely damaged with the help of fire extinguishers, but, by then a lot of damage will already be done. Comprehensive car insurance covers all the damages caused to your car, even the ones resulting from self-ignition, explosion, and lightning.
To be honest, this is the biggest nightmare one can ever have. No one wants their lovely vehicle to be stolen. And, then comes the tricky part. Dealing with financial problems, because not everyone can afford to buy a new vehicle every time their car is stolen. When you purchase comprehensive car insurance, you get back your car’s insured value in case someone steals your vehicle.
4. Protection against Natural and man-made Calamities:
If you must know, “Act of God” is exempted from all types of insurance. However, comprehensive car insurance covers all the damages to your car because of the earthquake, riots, tsunami, etc. This is best for people living in hilly areas or in coastal areas or where the chances of riots are too high. However, it is also beneficial for you if you love going to the mountains on vacation because mountains are the place where most of the natural calamities happen. No, I don’t want it to happen to you, but it can’t be prevented either. So why not be prepared?
5. Third-Party Losses:
Major car accidents could lead to an injury or death of any third-party while also damaging property. Imagine you gave your car to your friend and he was checking how fast your car can run. By mistake, he hits someone else’s car, and the third-party suffers an injury. You now have to bear three losses. Your car’s damaged, third-party’s vehicle is damaged and not to mention, hospital bills. Comprehensive car insurance takes care of all of that.
6. Car-Owner Cover:
As mentioned above, a minor misjudgment could lead to significant accidents. God forbid, if anything happens to you, your family’s finances will be shaken. And, with increasing costs of health-care, your years of saving will go into medical bills. But, when you buy comprehensive car insurance, they’ll cover all these things for you.
7. Zero Depreciation:
The market value of your car decreases every single day since its purchase. That is the reason most people consider buying a car a liability but not anymore. Comprehensive car insurance ensures that your car is as valuable as the insurer will not consider the depreciation during the final settlement.
Though expensive, comprehensive car insurance could be one of your best investments. No matter what may come, your car will be covered. The best part about comprehensive car insurance is they even cover damage to the third-party and prevents your car’s value from depreciation.
Websites like Money Hub helps people compare different car insurance and helps them choose the best one for them according to their budget and needs.