Northern Beaches Mums Group
Northern Beaches Mums Group

What A Comprehensive Car Insurance Plan Must Cover

Accidents are unfortunately common these days. While it can be avoided, especially with being cautious while driving, unfortunately, it still happens. It generally occurs due to a mistake or negligence of the driver or other drivers on the road, or perhaps, the car you’re driving suddenly malfunctioned. 

As a car owner, it’s typical to feel stressed when an accident has occurred. Aside from the medical bills, you’d also be worried about your car since it may need a lot of attention and resources just to get back in shape. And that’s where a car insurance plan comes in. 

When buying a car, an insurance policy is essential. However, picking the right insurance with maximum coverage is critical. For instance, are you getting liability, comprehensive, or collision insurance?  Getting a good insurance plan for your vehicle will assure your safety on the road. And in this article, comprehensive insurance is what we are going to discuss.

What Is Comprehensive Car Insurance

Comprehensive car insurance is also referred to as “other than collision” coverage besides getting you insured after a car accident but also caters for other non-collision damages like hitting an animal, fire, theft, etc. It is categorized into two types: compulsory only, which covers a third-party loss, and full comprehensive that will provide more protection from all kinds of risks, including the third party. 

Essentially, comprehensive car insurance offers a vast number of benefits to the car owner if you compare it with other insurance policies. Still, it’d be good to know the inclusions that are a must in comprehensive car insurance. 

As such, here are what a comprehensive car insurance plan must cover.

Accidents 

Accidents do occur either caused by human or natural occurrences. There are three instances here that comprehensive insurance must cover: 

Vehicle rollover or running off the road

Sometimes, these are unavoidable circumstances and may result in significant damage to your vehicle. After informing the insurance company, they’ll assess and reimburse you with a settlement fee for the damage. 

Animal Accident

Sometimes some incidents involve the hitting of an animal on the road. Upon informing the insurance, they’ll come to determine what caused the accident and analyse how much damage it cost.

Natural disaster

Hurricanes, landslides, and hailstorms are natural occurrences that are out of our control. Your car might not be guaranteed safety from these natural disasters. The comprehensive insurance will check the vehicle and help with the repair costs.

Total Loss Of Your Car

What does it mean by total loss of your car? Here are three instances that contribute to the complete loss of your vehicle:

  • After an accident, your car might be written off. The reason is that the estimated value of the damage cost has exceeded the sum assured for repair, which is generally about 50%. Some insurance would prefer to write off the vehicle and give you another one instead of the same value.
  • You may lose a car through theft. You have reported the matter to the police, but your vehicle hasn’t been recovered within the policy’s time limit. So, the insurance company will write off, and if found after the theft, it will be considered a lower value or even salvage vehicle. A car is considered salvage if the cost of repair exceeds the initial value of the vehicle. Thus, it will still be written off. 
  • A total loss could also result from fire. Fire might have wholly destroyed your car. The insurance can help enable you to get a new car.

Theft Of Car Parts

The business of spare parts is lucrative in some countries. Many theft cases involve some critical components of the vehicle being removed and sold, such as headlamps, wheels, tail lamps, car stereos, etc. 

In such a scenario where your car isn’t entirely stripped, and you are still in possession of the vehicle, a comprehensive policy can help cover the lost parts. 

Car Vandalism 

These are uncommon risks that may happen from cases of insecurity in a place through violence or political wars. You may be unlucky your car has been damaged, but you can be assured that all the damages incurred will be catered for when you have a comprehensive cover. 

Third-Party Insurance

Fully-fledged comprehensive insurance also ensures complete coverage of the damage and losses of the third party and you as a result of an accident.

However, whenever such accidents happen, there might be disputes between the car owner and the other party, thus the need to always have a car lawyer to help settle or stand whenever a car accident happens.

Final Words

Accidents are unfortunate occurrences you can’t completely avoid, but following the proper legal procedure could help guarantee you a smooth compensation process whenever it happens.

A comprehensive insurance cover might be hectic to pay, but the additional benefits it comes along with it are incomparable. 

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