When you look out for car insurance, there are three kinds of policies that you will get:
- Third-party only (TPO)
- Third-party, fire and theft (TPFT)
As per the state law, the minimum car insurance requirement is to atleast possess a Standard or Third-Party plan. However this does not give you protection in case of accidents or other damages. A Comprehensive car insurance policy offers greater coverage than any other type of policy. Unlike The TOP and the TPFT car insurance policies, a comprehensive plan protects you from a wide range of unforeseen disasters like accidental damages, besides covering you for third party liabilities and loss due to fire and thefts.
Incidences Covered by Comprehensive Car Insurance?
A Comprehensive plan protects your car from various situations other than the third party liability coverage, some of which are mentioned below:
Theft incidents: one of the important benefits that this type of coverage offers is for your stolen vehicle. The case may be that the vehicle is never recovered or recovered in a damaged state. Comprehensive policies cover this type of losses, subtracting your deductibles. However, if you have any aftermarket equipment installed in your car, like custom stereo systems, etc., you need to inform about those to the insurance company at the time of purchase of the policy, in order to get them covered under the same policy.
Damage caused by natural calamities: A comprehensive coverage also protects you and your vehicle against damages caused by factors referred to as "Act Of God". This refers to natural calamities like floods, cyclones, etc.
Accidental Damages: This refers to any damage caused by a collision or any other type of accident. If you don't have a comprehensive plan, you might have to bear the costs by yourself and it becomes even more painful if you possess an expensive car or have bought it on credit. This car insurance policy ensures that almost all kinds of damages caused to your vehicle on the road will be covered, which in turn gives you peace of mind.
Costs of transportation: If your car break down midway for reasons mentioned under the terms and conditions of the insurance policy, the comprehensive policy will pay for alternate transportation. Since the rates of rental cars or taxis go up really fast, this can be considered as good money- saving technique.
However, all good things have slight drawbacks and the comprehensive car insurance plan is no exception. Comprehensive plans offered by different insurers do not always give all the coverage. Transportation costs for hired cabs, in case you have to leave your car at the garage for some time, are not provided by all companies. Many carriers do not include breakdown coverage under the standard plan and you might have to pay a little extra to get this coverage.