Comprehensive Car Insurance Meaning
A Comprehensive Car Insurance Policy is a comprehensive motor insurance plan that protects a car owner against both his own damage to his insured car and liabilities of any third party. This is also known as ‘own-damage’ or ‘other than collision’ car insurance. The reason for this is that this policy protects you financially from any kind of loss other than collision. A comprehensive car insurance policy serves to provide a protective cover to the car owner’s car against any kind of unexpected event like accident, fire, theft or natural disaster.
A comprehensive car insurance offers more coverage benefits as compared to a third party car insurance coverage. You can compare the prices of comprehensive car insurance online so that you can choose the best comprehensive car insurance as per your convenience and financial capability.
A comprehensive car insurance is considered to be one of the best types of car insurance policies, which provides complete protection to your car. This policy protects you against third party liabilities as well as your own loss. A third party insurance will only protect you from third party liabilities if your car is damaged in an accident whereas a comprehensive car insurance policy covers you for damages caused to the third party as well as your own.
Benefits Of A Comprehensive Car Insurance Policy
Following are the benefits of a comprehensive car insurance policy-
- A Comprehensive Car Insurance Policy provides a car owner with the highest protection cover for his car.
- Even if you are at fault in an accident, you can also claim for the damage caused in it with a comprehensive car insurance policy.
- A comprehensive car insurance policy covers all expenses including legal fees if you are prosecuted in a court of law due to an accident.
- A Comprehensive Car Insurance Policy provides you comprehensive financial protection. If your car gets damaged in an accident, the cost of repairing it is covered by the insurance company, so the financial burden does not fall on you.
- If your car is impounded as a result of an accident, the loss is also covered by the insurance company.
- Compared to third party insurance, this is a comprehensive insurance policy that provides complete protection coverage to your car.
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Comprehensive Car Insurance Policy Coverage
Before purchasing a Comprehensive Car Insurance Policy from any insurance company, you should carefully read the inclusions and exclusions in the policy document of the company. Most people ignore these things while buying a car insurance policy. But you don’t have to ignore it. Now further we will learn about the coverage of a comprehensive car insurance policy.
The following things will be covered under a comprehensive car insurance policy and it is only under these circumstances that the car insurance amount will be paid to you when you make an insurance claim. These are the following-
- damage caused by natural disasters,
- Fire,
- Theft,
- damage to third parties,
- Vehicle damage due to falling objects,
- Vehicle damage due to acts of civil disturbance,
Comprehensive Car Insurance Policy Exclusions
Now we will discuss about some of the circumstances in which you are not provided any kind of insurance cover by a car insurance company if your car gets damaged. Following are some of these situations-
- depreciation,
- vehicle breakdown itself,
- electrical or mechanical breakdown,
- Damage caused to the vehicle by driving without a valid license,
- Damage caused by driving under the influence of alcohol/drugs,
- tire and tube damage,
- Car damage due to war, rebellion or nuclear threat.