One of the biggest pitfalls when buying a new car is getting comprehensive car insurance. Although it seems like a daunting task—especially if you’re a first-time car buyer and not a car enthusiast—insuring your car with comprehensive insurance will help you save a lot of time, money, and headaches in the event of accidents or unexpected problems.
To better understand what comprehensive insurance is, it would be wise to know the different types of insurance coverage.
Basically, there are two main categories of physical damage losses covered, including collision damage losses and non-collision losses. These two categories are referred to as “collision coverage” and “comprehensive coverage,” respectively.
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When your vehicle is damaged in an accident, collision insurance is an optional coverage that you pay the cost of having it repaired or replaced, minus your deductible. This type of coverage provides basic coverage for car owners.
There is also insurance coverage known as Compulsory Third Party Life (CPTL). When a vehicle owner has a CPTL, you no longer have to worry about compensation payments, medical bills, and expenses other than repairs required by victims in the event of a collision where you are at fault.
However, the CPTL does not cover any damages you may sustain from the same accident, or from any accidents where a collision did not occur. This is where comprehensive coverage comes into play.
Comprehensive auto insurance provides coverage for many threats, depending on what the insurance company has indicated. The most common combinations are third party, fire, theft, and accidental damage, but benefits vary between insurance companies, making it necessary to do extensive research first to find one that offers the best deal.
Aside from minor accidents, this type of insurance allows you to claim your insurance company in case you suffer damage from natural disasters such as floods or earthquakes. It also protects you from heavy financial burdens in case your car is stolen.
List of auto and auto insurance companies
Essentially, comprehensive car insurance provides complete coverage in every situation you are on the losing end. What’s more, there are car insurance providers that can give you additional coverage depending on the limits of available plans, the amount of coverage, and your needs.
To learn more about it, check out the infographic below from iChoose.ph that discusses the benefits Comprehensive car insurance.
What is the benefit of comprehensive car insurance? Comprehensive car insurance gives you the highest level of accident protection, no matter what went wrong. It can cover repairs, personal injury claims, and property damage – usually for you, your car and any other vehicles involved.