What Is Comprehensive Car Insurance ?
Comprehensive car insurance is a type of automobile insurance that provides highest level of financial security than other types of insurance plans. It covers both third party claims and own damages. Comprehensive insurance provides coverage for theft, fire, natural calamities etc. Therefore, it has wider coverage than third party insurance.
Benefits Or Advantages Of Comprehensive Car Insurance
The main advantages of comprehensive insurance can be pointed out as follows:
1. Maximum Protection
Comprehensive insurance provides more financial protection than other types of car insurance policies. It provides protection for fire, theft, natural disasters, vandalism, man-made damages, third party claims etc. It protects other people's properties and your car also. Therefore, this insurance is beneficial than third party insurance.
2. Peace Of Mind
It reduces the stress and gives peace of mind to the car owner because he/she knows the car is fully protected.
3. Flexibility
Comprehensive insurance is more flexible than other insurance plans because it can be customized as per the wish of the car owner. Owners can add optional coverage and can also take benefit of no claim bonus which is not possible in third party car insurance.
4. Cut Costs
Another notable advantage of comprehensive insurance is that it saves money on repair and replacements because insurance company takes this responsibility.
5. Suitable
This insurance policy is suitable for new and expensive car having high market value. It is also useful for those drivers who drive regularly.
Drawbacks Or Disadvantages Of Comprehensive Car Insurance
The major disadvantages of comprehensive car insurance can be pointed out as follows:
1. Expensive
This insurance plan is more expensive than other types of auto insurance plans. Insurers may include unnecessary coverage options that may not be useful for all car owners.
2. Not Suitable
Comprehensive insurance is not suitable for old cars having lower market value. It may not be useful for the owners who do not drive regularly.
3. No Full Coverage
Although it provides more coverage than third party insurance , it does not provide full coverage like mechanical breakdowns, wear and tear etc.
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4. Complex Process
Another disadvantages of comprehensive insurance is that it is very difficult and complex task to settle claims. It requires several steps and strict documentation.
Pros And Cons Of Comprehensive Insurance In Brief
Pros:
- It provides wider range of protection than other type of insurance policies
- It saves repair and replacement costs
- It is suitable for high-valued cars
- It reduces the stress of the owner
- It can be customized easily
Cons:
- It is not suitable for old vehicle with less value
- Insurance premium is very high
- It does not provide full protection
- It is difficult to settle claims
