Understanding Full Cover Insurance

Car insurance is a legal requirement in most countries. It covers the financial losses that a driver may encounter in case of an accident or theft. Comprehensive insurance or full cover insurance is an additional type of coverage that provides extensive protection for your vehicle. In this article, we will discuss what full cover insurance is and how it differs from other types of car insurance.

What is Full Cover Insurance?

Full cover insurance or comprehensive insurance is a type of car insurance that offers a wider range of protection than basic insurance policies. It covers damages caused by natural disasters, theft, fire, vandalism, and accidents.

Unlike liability coverage, which only covers damages to other people’s properties, comprehensive insurance also covers damages to your own vehicle. The cost of repairing or replacing your car will be covered by your insurance company, subject to the limits of your policy.

What Does Full Cover Insurance Cover?

Full cover insurance typically covers the following:

Event
Coverage
Accidents
Covers the cost of repairing or replacing your car and the other party’s car, as well as medical expenses and legal fees in case of injury or death.
Theft or Vandalism
Covers the cost of repairing or replacing your car in case of theft or vandalism.
Natural Disasters
Covers the cost of repairing or replacing your car in case of floods, earthquakes, tornadoes, hurricanes, or other natural disasters.
Fire or Explosion
Covers the cost of repairing or replacing your car in case of fire or explosion.

What is Not Covered by Full Cover Insurance?

Full cover insurance does not cover the following:

  • Regular maintenance or wear and tear of your car
  • Customized equipment or accessories that are not part of the original manufacturer’s specifications
  • Intentional damage caused by the policyholder
  • Driving under the influence of drugs or alcohol

How Does Full Cover Insurance Differ from Other Car Insurance Types?

Full cover insurance offers more extensive coverage than other types of car insurance. Here are some of the key differences:

Liability Insurance

Liability insurance only covers damages to other people’s properties or injuries they may sustain in an accident caused by the policyholder. It does not cover damages to the policyholder’s car or injuries they may sustain.

Collision Insurance

Collision insurance covers damages to the policyholder’s car in case of a collision with another car or object, regardless of who is at fault. It does not cover damages caused by theft, natural disasters, or vandalism.

Personal Injury Protection Insurance

Personal Injury Protection (PIP) insurance covers medical expenses and lost wages for the policyholder and their passengers in case of an accident, regardless of who is at fault. It does not cover damages to the policyholder’s car or injuries sustained by other people.

FAQ

Do I Need Full Cover Insurance?

Full cover insurance is not mandatory, but it is highly recommended for drivers who want to have comprehensive protection for their car. It is particularly useful for drivers who live in areas prone to natural disasters or high theft rates.

How Much Does Full Cover Insurance Cost?

The cost of full cover insurance varies depending on several factors, including the make and model of your car, your driving history, your age, and your location. It is generally more expensive than basic insurance policies, but it offers more comprehensive coverage.

Can I Lower the Cost of Full Cover Insurance?

Yes, you can lower the cost of full cover insurance by taking advantage of discounts offered by insurance companies, such as safe driving discounts, multi-car discounts, or bundling discounts. You can also raise your deductible or opt for a lower coverage limit to reduce your premiums.

Is Full Cover Insurance Worth It?

Full cover insurance can be worth it if you want to have peace of mind knowing that your car is protected in case of any unforeseen events. It can save you from paying hefty repair or replacement costs out of pocket. However, if you have an older car that is not worth much, full cover insurance may not be necessary.