Comprehensive Auto Insurance And It’s Components
When getting car insurance, most people often ask different questions about automobile insurance.
“What type of automobile insurance coverage should I purchase?” ” What is comprehensive auto insurance?” “How much car insurance coverage should I purchase?”
There are six common car insurance coverage options: uninsured and underinsured motorist coverage, auto liability coverage, comprehensive coverage, personal injury protection, medical payments coverage and collision coverage.
However, if you purchase a car, it might be necessary to get comprehensive auto Insurance coverage.
The following information will help you understand what Comprehensive Auto Insurance is and its components. This article will also assist you in understanding the Pros and Cons of Comprehensive Auto Insurance.
What Is Comprehensive Auto Insurance?
Ever wondered what car insurance covers car damages not caused from a collision?
When you get Comprehensive car insurance, your car’s insurance covers damages from break-ins, natural disasters, riots, animals and several other causes.
However, getting comprehensive car insurance is not financially advisable if you own an older car that has already lost an important amount of value.
What does Comprehensive Auto Insurance Cover? (Pros of Comprehensive Auto Insurance)
Comprehensive insurance covers several damages caused by:
•Riots and vandalism
•Natural disasters, like floods.
•Animals
•Fire
•Car theft, or theft of certain parts of the car.
•Fallen objects like tree branches, rocks, or car garage.
•Broken windshields
Cons of Comprehensive Auto Insurance
•Comprehensive car insurance will not pay for damages if you are in an accident.
•If you are getting your comprehensive insurance along with collision insurance, the cost of the insurance may increase and become expensive.
Did You Know? There are important sections that should be in a Comprehensive Insurance Policy Wording.
It is important to go through important sections of your car Insurance plan when acquiring a comprehensive insurance plan.
Some important sections included in a car’s comprehensive insurance policy wording:
Third Party Liability
It is mandatory that your comprehensive car insurance policy wording includes the third party insurance cover.
This component protects you from financial liabilities you might get if you have to pay a third party for their damaged properties, Injuries or loss of life.
Make sure you go through the inclusion and exclusion clauses of the third party liability in your insurance policy document.
Damage or Loss Of The Car Insured
The “Own Damage” car insurance coverage section is an important component of comprehensive Car insurance. Every detail about the own damage coverage is well stated in the insurance policy wording under this section.
Before making a claim, be sure to verify if the event that caused the damage to your vehicle is covered by your insurance policy. Your claim request can get rejected by the insurer if the policy does not cover the incident.
Insured Declared Value
In this section of the insurance policy wording, you can get the Insured Declared Value (IDV). This is the maximum Sum amount fixed by your insurer and then provided if your car was stolen or totally damaged.
The IDV is fixed at the start of the insurance policy term and its calculation depends on your car’s Manufacturer, Model, Date of Registration and so on.
For example, if the market value of your vehicle is 2 Million Naira when the insurance was purchased, it means the insurer will provide a maximum amount of 2 Million Naira. The IDV is adjusted as the market value of your vehicle depreciates.
Personal Accident Cover
In this section, you will find a table that explains the nature of the injuries covered by the insurance policy and the compensation scale provided to the owner-driver.
If you do not want to get confused when trying to know the compensation amount offered and the kind of injuries the insurance policy covers, make sure you go through this section.
General Exceptions
The general exceptions of all sections of the policy wording is present in this section.
It is necessary to keep the component of this section in mind before you make a claim request because your insurer will reject the claim if the insurance policy does not cover such incidents.
Grievance Redressal
If you are ever dissatisfied with your insurance claim process or have complaints related to claim amount, you can find contact information about the insurance company such as the email address, phone number and company’s office address in the contact section of the car insurance policy wording.
This section is included so that customers can easily reach them to fix problems that may occur during the claim process.
How do I Find Policy Wordings of Car Insurance Companies? It’s Simple!
Most car insurance companies have made the policy Wordings of their insurance plan accessible online.
You can also get the insurance policy wordings of any insurance provider of your choice by visiting their branch office.
If you need more clarification about what the insurance covers or what it excludes when seeking to purchase comprehensive auto insurance, ask the broker offering the policy to explain the coverage and exclusion types thoroughly.
We hope in your quest for more information, this article helps you in asking the appropriate questions.