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Covers your vehicle, and sometimes other vehicles you may be driving for
losses resulting from incidents other than collision. For example, comprehensive
insurance covers damage to the policyholder’s car not involving a collision with
another car (including damage from fire, explosions, earthquakes, floods, and
riots), and theft.
Comprehensive car insurance pays to fix your vehicle less the excess you
choose. To keep your premiums low, select as high a excess as you feel
comfortable paying out of pocket. Cover is limited to the terms and conditions
contained in the policy.
How much protection does this
Comprehensive Car Insurance provide?
The amount you see typically refers to the excess, or the portion of a claim
you’re responsible for paying. A higher excess can substantially lower the cost
of insurance premiums. You should balance this savings against your ability to
absorb a larger out-of-pocket expense. For example, if you set your excess at
$1,000 and your car sustains damages totalling $1,500, you will pay $1,000 and
your insurance company will pay $500.
If your car is financed or leased, the finance company will probably require
that you carry this type of car insurance. Generally speaking, if you have
a newer vehicle or one in excellent condition, this cover would be recommended
to replace or repair the vehicle in case of loss. Though if you under 25
years old, or have an older car or one in poor condition, you may not want to
pay for this insurance and opt for Third Party Insurance instead.
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