Comprehensive Auto Insurance Meaning, Benefits, What it covers, Advantages, Disadvantages
Comprehensive Auto Insurance
Comprehensive Auto Insurance is a type of automobile insurance that covers any accidental damage, theft, fire and other damages on your vehicle. It is designed to help pay for losses and repair any damage caused by accidental or other external physical impact on your vehicle.
Comprehensive Insurance also covers third-party damages caused by your vehicle. It is important to ensure your vehicle is adequately insured to protect yourself from any unexpected expenses, cost, financial loss and severe consequence of accidents. Comprehensive insurance is essential because it provides a complete financial protection from any unforeseen situation and occurrence.
What Comprehensive Auto Insurance Covers
The comprehensive insurance covers a range of damages including the following
1. Physical contact with any moving animal or hitting a tree, building, electric pole etc.
2. Fire and Flood Accident
3. Natural occurrence like earthquake, volcanic eruption etc.
4. Theft
5. Falling Object on vehicle resulting to damage, broken windshields etc.
Benefits of Comprehensive Auto Insurance
There are several benefits of comprehensive auto insurance, some of which are listed below.
1. Accident Cover : One major benefits of Comprehensive car insurance involve adequate compensation in a situation where an accident occurred resulting to body injury, car damage and other physical damages incurred during the accident.
2. Third Party Insurance : Third party insurance involves the process where the car owner is covered from any third-party legal liability in a situation where an accident occurs. In a situation the insured vehicle gets involved in an accident in which a third party is injured or killed, the Insurance company provides an adequate compensation to the affected third party and beneficiary.
3. Adequate Protection and Coverage : Comprehensive Insurance provides an adequate protection for the insured vehicle against theft, riots, unforeseen circumstances, natural disasters such as lightning, severe climate changes, earthquakes, floods etc. Most importantly the assurance gotten from Comprehensive insurance is overwhelming.
Advantages and Disadvantages of Comprehensive Insurance
Advantages
1. It protects you financially from theft, riots, severe climate changes and natural disasters.
2. It covers your insured vehicle from unforeseen events
3. It covers third-party insurance
Disadvantages
1. It might not be necessary to have a comprehensive insurance for an unfit, faulty and older car with high mileage.
2. It does not cover any personal belongings stolen from your car
3. It does not cover damage incurred on your car due potholes
August 26, 2023 at 9:34 am |
It was helpful when you explained to us that a comprehensive insurance policy can cover third-party damages caused by our vehicles as well since it is designed to help us pay for losses caused by unforeseen situations and occurrences. I will be investing in a car of my own soon now that I finally have my license, so I also have to get the insurance policy I need for the vehicle ready as well. I’ll take note of this while I look for an auto insurance company in Temecula to hire for help soon.