Comprehensive car insurance is known as the most diverse and widest insurance coverage when compared to the other coverages.
Have you wondered why comprehensive car insurance is highly recommended? This is because of the maximum financial protection that it provides and due to its economical reason.
Take a look on the outlines below to know what is covered under comprehensive car insurance:
- What is comprehensive car insurance?
- What are the losses comprehensive car insurance covers and its additional coverages?
- Who needs comprehensive car insurance?
- How deductibles and liability limits apply to this coverage?
- How comprehensive car insurance can be purchased through PolicyStreet which gives you the best deal!
Check them out!
What is comprehensive car insurance?
Comprehensive car insurance covers you against unforeseen losses to the third party for death or bodily injuries, damages that have occured to the third party’s properties as well as accidental or fire damages and burglary cases that have occurred to your car.
Policyholders should be aware that this policy does not cover the driver’s death or any bodily injuries. If policyholders would want to seek this benefit, they would have to purchase additional coverage to insure them.
Here is a list of the losses that are covered and the additional extensions that can be added to your comprehensive car insurance coverage.
- Death or Injury to the Third Party
- Damage to the Third Parties’ Properties
- Loss or Damage to your Car caused by Fire or Theft
- Damage to your Vehicle due to Accident
Additional Extensions to Comprehensive Car Insurance
- Windscreen Coverage
- Named Driver
- Special Perils (Flood, Hurricane, Typhoons, Earthquakes, Landslides and other natural disasters)
- Personal Accidents and Medical Benefits for Drivers and Passengers
- Legal liability
- Legal Liability to Passengers (LLTP)
- Legal Liability of Passengers (LLOP)
- Compensation for Assessed Repair Times
- Car Accessories Coverage
- Strike, Riot and Civil Commotion
Who needs comprehensive car insurance?
Before considering purchasing a comprehensive car insurance policy, you have to bear in mind that this policy suits best for those who own vehicles that have not exceeded a certain age limit. For instance, old cars do not require or even qualify for this coverage. If you own a relatively valuable and a pricey car, then comprehensive car insurance would be a great choice for you.
Even though comprehensive car insurance is considered to be expensive compared to the other coverages, it is also known as a money-smart option if you have decided to purchase this coverage.
These are the conditions that should be considered before purchasing a comprehensive car insurance coverage:
- If your car is under five years old then you might want to consider this coverage as it provides a wider coverage.
- If you could not afford to pay for car repairs in case of accidents then you should consider this coverage, as car repairs are significantly expensive and it might be burdensome.
- If there is more than one driver. If you are the only one driving the car, then you would be meticulous in handling it compared to those who you have been loaned to as they might not be as cautious as you are. By considering comprehensive car insurance coverage, you would not have to worry about who is going to bear the expenses in the care of another driver. You would need to remember to list down all the other drivers. It is free for the first two names and RM10 would have to be incurred for the additional drivers.
- If you are able to afford it. Comprehensive car insurance is the most expensive coverage when compared to the other two coverages. You should remember that, even though you are paying more, you will be covered much more than the primary cost of the coverage.
- If you are expecting complimentary coverage. By purchasing comprehensive car insurance, you can benefit from complimentary services and extras that would be beneficial to you. For instance, many comprehensive policies come with roadside assistance such as battery charging and changing tires, free towing and warranty for post repair parts. You have to be aware that additional endorsements will vary with the policy, hence you should do research deeply beforehand.
How deductibles and liability limits apply to comprehensive car insurance?
Confused about how deductibles and liability limits work? Well, after reading this section you would definitely be clear on how they function.
Firstly, you should know what is meant by deductibles. Deductibles which are also known as excess is the amount of money that you would have to incur while the remaining amount would be borne by the insurance company. The higher the deductibles, the lower the premiums as you have taken more risk on yourself and the insurance company would pay less for your losses.
To clarify, if you have RM1000 deductible and have encountered an accident where you are at fault which have caused RM2000 damage to your vehicle, then you would have to pay the first RM1000 out-of-pocket while your insurance company would bear the remaining losses of RM1000.
Therefore, by being a rational and wise policyholder you should be able to choose the right amount of deductible by comparing how much you would save on your policy each year and how much you would have to fork out money in the event of an accident. You would need to find a perfect equilibrium between your personal budgets and needs.
Since, now you have a better understanding on how deductibles work, you are one step closer to master the terms of car insurance.
On the other hand, you would need to consider your liability limit as well. Liability limit is known as the maximum amount that your insurance company will pay for your damages. You would be responsible for the losses that are above the limit. The higher the liability limit, the higher the insurance premium.
Due to this reason, many people would choose to get the minimum required coverage but this is not always the right choice. If you are unsure of the liability limit, you should consult an insurance broker to recommend a liability limit based on your unique circumstances and to give you some suggestions on what is best for you.
To sum up, before purchasing comprehensive car insurance, deductibles and liability limits should be taken into consideration by the policyholders carefully.
How do I apply for comprehensive car insurance coverage?
Since you have considered purchasing comprehensive car insurance, you can purchase this coverage though PolicyStreet. As you know, PolicyStreet offers a car insurance platform where you can compare and buy directly from there!
As Policystreet is a financial advisor approved by Bank Negara Malaysia (BNM), you will be able to find a variety of car insurance with unbiased choices and the pricing that suits your needs!
Here are the steps on how you can purchase car insurance via PolicyStreet:
- Visit policystreet.com/motor/
- Key in the relevant details and generate instant quotes
- Choose the type of insurance that you are purchasing
- Add on extra coverages that you prefer
- Give us your details and Check out!
Excellent, you have now mastered all the coverages under car insurance!
Don’t miss out on the chance since comprehensive car insurance provides you with the widest coverage.
It will definitely give you a peace of mind for wherever the road takes you!