We get a lot of queries about the different kinds of insurance and what they mean. Every vehicle owner should know the differences to help them determine which is best for their individual needs. Have you been wondering what comprehensive car insurance is? In this article, we’ll be breaking down what comprehensive car insurance is and how it differs from others.
In a previous article, we discussed the difference between personal and commercial car insurance. We’ve also written an article to help you understand the difference between long-term and short-term insurance.
So what is comprehensive car insurance? Let’s have a look…
What does comprehensive car insurance cover?
Comprehensive car insurance is the most inclusive type of insurance. This means that you get the maximum protection available to ensure your vehicle’s safety.
This type of insurance covers everything from accidents, theft, damage and third-party cover. Third-party cover refers to cover for an incident where you cause damage to another vehicle or an accident that is your fault.
Third-party insurance alone only covers the other driver’s car that you damaged during an accident. This is also known as liability insurance. Comprehensive car insurance covers the damage costs to your car and the other victim’s car.
Cover for a write-off
Most comprehensive car insurance plans include cover for a vehicle write-off. What does it mean for a car to be written off? When a car is stolen or so badly damaged that it is deemed uneconomical to repair, or if the cost of repairs will be more than the insured car value, then the insurance provider will write it off. This is also known as a ‘total loss.’ In these cases, the insurance provider will pay out a claim to the amount that your car was insured for minus excess.
What is not covered in comprehensive car insurance?
Even though comprehensive car insurance is the most inclusive insurance option that doesn’t mean it is unlimited. As with every type of insurance, there are limits for what is covered and what is not.
Comprehensive car insurance does not include cover for
- Driving while under the influence of alcohol or substance
- Maintenance and service plans
- Electrical and mechanical breakdowns
- If an unlicensed driver gets into an accident with your car
What’s the difference between comprehensive car insurance and accident cover?
Accident cover generally only covers your car against accidents and damage caused to your car. If you are responsible for the accident, accident cover insurance won’t cover damage to both your vehicle and the other person’s vehicle.
Comprehensive car insurance covers your car against accidental or intentional damage, theft, damage caused by natural disasters, and hijacking.
Comprehensive car insurance is the most inclusive insurance plan available. If your vehicle was paid for from the bank – if you took out a loan to pay for it – the bank may require you to have comprehensive car insurance.
There are many benefits to having comprehensive insurance and it is definitely worthwhile if you have a more expensive car that could cost thousands to repair or replace.
Get a quick vehicle or home contents insurance quote from us on https://qualityquote.co.za/car-insurance-quote/