Comprehensive refers to something that is thorough, inclusive, and covers a wide range of aspects or items. A comprehensive motor insurance policy that insurance providers will avail you includes coverage for a wide range of risks and perils, providing extensive protection for your vehicle.
In contrast to the minimum cover of third-party liability, comprehensive insurance typically caters for newer vehicles. The scope of cover comprises of two sections: one provides protection for loss of or damage to the insured vehicle, while the other offers coverage for third-party liability resulting from the vehicle’s usage.
Why is comprehensive motor insurance commonly provided to newer vehicles?
Comprehensive motor insurance is provided to newer vehicles due to several reasons, two of which is its higher market value and as part of loan or lease requirements.
Newer vehicles typically have a higher market value compared to older vehicles due to the fact that they are less affected by depreciation and wear and tear. Consequently, in the unfortunate event of an accident, breakdown, or total loss, comprehensive insurance can provide substantial financial coverage towards repair costs, especially for replacing new components.
Lenders or lessors such banks may require comprehensive insurance coverage as a condition of financing or leasing a newer vehicle. This requirement helps protect their investment in the vehicle by ensuring that it is adequately insured against potential risks.
Financial Protection for your Vehicle:
Worry less because the financial safety-net in a comprehensive motor policy essentially covers for damage to your own vehicle. Your vehicle is assured for:
- accidental collision or overturning
- collision or overturning caused by mechanical breakdown or wear and tear
- impact damage caused by falling objects provided no flood, typhoon, storm, volcanic eruption, earthquake, landslide, subsidence or other convulsion of nature is involved (such as tree branches, debris from construction sites, signposts, traffic signals or objects dropped from overpasses or bridges)
- fire, explosion or lightning
- burglary, housebreaking or theft (Yes! If your car is stolen, comprehensive insurance can help cover the cost of replacing or recovering the vehicle)
- malicious acts
- when in transit (including its loading or unloading) by road, rail or inland waterway.
Third-party Liabilities:
The second part of the coverage insures for liability to third parties, which means non-passengers.
The insurance is claimable in the event of bodily injury, death, loss or damage to property involving third-party. Thus, this coverage is designed to protect you financially in case you damage someone else’s vehicle and or property or cause injury to others while driving your vehicle.
This liability coverage also extends to damage to public infrastructure such as signposts, traffic signals, bus shelters, and other essential roadside structures, limited to RM3 million (including third party vehicle damage) in any one claim.
The comprehensive motor insurance policy is complimented by optional add-ons.
Besides the essential comprehensive coverages as explained above, a comprehensive car insurance allows optional add-on benefits as an extra layer of financial protection such as the Special Perils extension, Riots, Strikes, Civil Commotion coverage, and Windscreen coverage to name a few.
Young drivers on a budget may tailor their add-on benefits to suit their expenses, but purchasing add-ons is a good contingency plan to protect your vehicle against unforeseen circumstances.
Overall, being informed about insurance options is key to ensuring peace of mind on the road.
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