Comprehensive Car Insurance: What Is It, How Much, and Benefits?

If you are looking for car insurance or are just reviewing your current car insurance options, you should consider Comprehensive Car Insurance. Find out which comprehensive insurance policies protect you, what the costs are and how they differ from other car insurance policies.

Table of Contents

What is Comprehensive Car Insurance?

Collision Damage Waiver is car insurance that covers certain types of damage to your vehicle that is not caused by a collision with another car. It is mandatory for leased cars and cars currently paid for on a loan. The Comprehensive Car Insurance is additional; it is optional insurance coverage that can be added to an insurance policy. For maximum protection, you can combine comprehensive insurance with third-party liability and comprehensive insurance, or opt for classic car insurance, which offers flexible use and insurance cover especially tailored to classic cars.

If you’re asking yourself: “What’s in it for me with Comprehensive Car Insurance?” Here’s an example: You’re rushing from home to work in the morning and when you open the driver’s door of your car, you realize that a hail-sized chunk of hail has fallen through your windshield. You’re thinking all window damage is the same on my state minimum insurance, right?

Not correct.

In order not to have to pay for such damage out of your pocket, you need comprehensive car insurance. A windshield shattered by hail is covered by comprehensive insurance, while a windshield shattered by a traffic accident is covered by either your comprehensive insurance or the other driver’s liability insurance.

What does comprehensive car insurance cover?

Every accident is unique – whether comprehensive insurance will cover your accident depends on many circumstances. The following types of damage can be covered by comprehensive insurance:

  • Theft
  • Fireworks
  • Vandalism
  • Contact with animals
  • Falling or flying objects
  • Hail
  • Damage to the windshield
  • Storm
  • Earthquake

Pros of comprehensive car insurance

  • Comprehensive coverage protects you against theft, weather-related events, and other important matters beyond your control.
  • Extended coverage often covers “unforeseen events” such as burglaries or broken wipers caused by hail.
  • If you own a new car and live in a high-crime area, comprehensive insurance will cover damage caused by burglary or theft.

Cons of comprehensive car insurance

  • Comprehensive insurance does not cover damage caused by a collision.
  • It may not be necessary to have an older car with high mileage.
  • Comprehensive insurance does not cover anything personally stolen from your car.
  • Pothole damage is not covered.

Comprehensive Car Insurance vs. collision insurance

What is comprehensive car insurance compared to a collision? You could say that they are two halves of a whole. Collision insurance covers you if your car is damaged by another vehicle, a stationary object, or if it tips over. If you are involved in an accident, you are covered by accident insurance. Easy enough right? Conversely, comprehensive car insurance covers almost everything else. As mentioned above, if your car is damaged by theft or natural disasters, you are fully covered. You could say collision is when you hit something else, and extended when something else hits you (assuming something else isn’t another car).

Comprehensive Insurance vs. full coverage insurance

Yes. Some people mistakenly use these terms interchangeably, but there is one key difference, which is that most insurers don’t offer what they call “full coverage.” In other words, no auto insurance covers everything.

As previously mentioned, Collision Damage Waiver is an optional add-on to your state-mandated liability insurance that provides additional protection for accidents not caused by a collision with a vehicle. Instead of having one super policy, you can combine different covers.

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Is comprehensive car insurance required by law?

You are not legally obliged to take out comprehensive insurance. However, lenders often require that you have it if your car is leased or not paid off in full. Comprehensive insurance also covers damage that is often beyond your control. So unless you’ve learned to control the weather, every branch in your area, and every potential thief in the area, comprehensive coverage is a good idea.

Comprehensive Car Insurance Price in USA

Comprehensive coverage covers damage to your car caused by accidents and disasters beyond car accidents. The average cost of comprehensive insurance is about $134 per year, according to the Insurance Information Institute. However, reports that the amount is $192, depending on the state you live in. Either way, you’re looking at less than $200 a month for just comprehensive insurance for your car.

Collision and Collision Damage Waiver policies each have their deductible (Third Party insurance has no deductible), so a driver can choose different deductibles depending on the perceived risk in each of these areas. For example, if you think you’re unlikely to file an extended claim but don’t want to forego comprehensive insurance altogether, you can choose a relatively high deductible of $1,000 to lower premiums. The higher the current market value of a vehicle, the more expensive comprehensive insurance becomes.

Understanding how insurance companies determine driver risk classes can help you better estimate what you might pay for comprehensive coverage. Your location, driver’s license, and coverage levels can determine how much you pay for car insurance, including a collision damage waiver. For example, the most expensive state to insure a car in Louisiana, where the average driver spends $1,545 each year on comprehensive insurance. The cheapest state in comparison is that drivers in North Dakota only pay an average of $686 per year for Vehicles.

Comprehensive Car Insurance Price In Nigeria

Comprehensive insurance covers all risks associated with driving or owning a vehicle. For this reason, it is considered one of the most expensive types of insurance. However, the cost of comprehensive insurance for a specific vehicle depends heavily on the cost of the vehicle

In Nigeria, most insurance companies charge between 3% and 7% of the total value of your vehicle for comprehensive insurance. The value that is placed on the car is the initial cost of the car. Some insurance policies offer additional services that are subject to a fee, e.g. B. car tracking devices. This is only possible for comprehensive policyholders.

You will receive an insurance certificate once you have fully taken out your motor vehicle comprehensive insurance. This confirms that you are entitled to report damage to the vehicle in the event of unforeseen circumstances.

Advantages Of Comprehensive Car Insurance

If you want to insure your car against other life risks, you need what is known as fully comprehensive motor vehicle insurance. What are you insured for and why is it worth thinking about? Here are the five advantages of comprehensive car insurance:

1. It covers you if your vehicle is lost or damaged

The main difference between liability insurance and comprehensive insurance is the coverage of your car.

Liability insurance covers you for damage to someone else’s vehicle if you are involved in an accident and fail. Comprehensive insurance not only covers damage to third-party vehicles but also to your car. If your vehicle is stolen or damaged in an accident, even if you’re at fault, comprehensive coverage is there for you.

It’s a good idea to think about what you would do if you suddenly lost your car. could you work without Could you afford to buy a new car right away? If either answer is no, comprehensive coverage may be better for you.

2. You can customize your coverage

If your car is involved in an accident, you may not be able to drive it while it is being repaired or replaced. However, your comprehensive insurance may be able to cover the cost of the car rental to keep you mobile in the meantime.

Some insurers cover the rental costs for up to 14 days if your car is stolen and for an indefinite period in the event of an accident through no fault of your own. The comprehensive car insurance also covers the costs for emergency transport and possibly accommodation.

Here, too, it depends on how you would cope with everyday life without a car. For example, if you live in a place without reliable public transport, a rental car can be a lifesaver.

3. You can get a new-for-old replacement

If you bought a brand new car in the last few years, some insurers will offer a new-for-old replacement when your car is written off.

Some insurers will even take care of the registration and CTP of your new car if you meet certain criteria. This can make comprehensive coverage a smart option for those who recently bought a new car.

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4. You are insured against fire, theft, storm damage, and flooding

Another advantage of comprehensive car insurance is that you are not only insured for traffic accidents.

It also insures your car against many other situations including theft, fire, flood, and storm damage (think hailstones through the windshield). Don’t worry if bad weather hits your car.

5. All the little things

We have listed the most important advantages of comprehensive car insurance. But it can also help with much smaller things. For example, your insurer may guarantee approved repairs and cover you for some or all of those repairs, up to certain limits:

  • If your car has to be towed after an accident.
  • If your keys or remote control are stolen.
  • Theft or damage to personal belongings in your car.

Best Comprehensive Auto Insurance in Nigeria

1. AXA Mansard car insurance

AXA Mansard offers various types of car insurance. Your plans include:

  1. AutoFlex: This is a customizable and flexible auto insurance policy they offer to help customers make big savings on their auto insurance premiums
  2. Auto Plus: This insurance plan covers floods and other extras. It contains
  3. AutoGo: With this plan, you can get your car insurance and get your certificate immediately.

The three different car insurance policies cover damage to someone else’s property, personal injury to third parties, theft, fire damage to the insured vehicle, accidental damage, free vehicle tracking, and so on.

2. AIICO Auto Insurance

AIICO insurance covers different types of cars – for personal and commercial use. Your car insurance also covers motorcycles and tricycles.

AIICO comprehensive car insurance covers the following group of people:

  • Owners of private vehicles
  • Several family owners
  • Taxi owner
  • Bus owner
  • Delivery vehicles
  • Commercial fleets

3. LeadWay Auto Insurance

Leadway’s comprehensive motor insurance provides benefits against loss of or damage to your covered vehicle as a result of an accident or mechanical damage/breakdown.

4. Industrial and General Auto Insurance (IGI)

IGI offers car insurance that covers:

  • Third Party Only: This only covers unlimited civil liability to a third party for death or personal injury, legal costs in defending a claim, liability for accidental damage to another person’s property, etc. For more information on professional liability insurance, see this post.
  • Fire and Theft Liability Insurance: This car insurance only provides liability insurance and coverage for the risks of fire and theft.
  • Extended: This policy provides coverage for accidental damage to the insured vehicle.

5. Custodian and Allied Auto Insurance

Escrow car insurance covers your car, truck, trailer, or motorcycle depending on the type of car insurance you choose.

Your car insurance includes:

  • Comprehensive coverage: This covers accidental damage, fire, theft, accidental damage to third party property, death, or personal injury to the third party.
  • Third Party Fire and Theft Insurance: This coverage only covers accidental damage to the third party’s vehicle, death, or personal injury to the third party.

Best Comprehensive Car Insurance in the United Arab Emirates

Here is the list of the best car insurance companies in Dubai and the UAE

1. Oman Insurance

Recognized as one of the most trusted auto insurance companies in the UAE, Oman Insurance is headquartered in Dubai and operates in every emirate with a network of over 15 offices in every emirate including the Sultanate of Oman and Qatar. Known for its broad business portfolio covering a variety of health, life, and property insurance, Oman Insurance is one of the leading names when it comes to auto insurance companies in the UAE. It offers a range of comprehensive auto insurance plans, third-party auto insurance, and specialty coverages.

2. AXA car insurance

AXA Insurance, a France-based multinational, has dominated the golf insurance market for over 68 years. AXA offers very competitive comprehensive motor vehicle insurance with a coverage period of up to 15 years. The things that make this auto insurance company different from other auto insurance companies in the Emirates are its well-thought-out layout, various internal options, and various value-added services in the form of add-ons. With a range of comprehensive car insurance plans and compulsory liability insurance, AXA is by far one of the best car insurance companies in the UAE.

3. Al Sagr Insurance

Founded in 1979, Al Sagr has been a class-leading insurance and reinsurance company ever since. The company was established as a multinational company with headquarters in Dubai. Al Sagr is a public shareholder and one of the leading auto insurance companies in the United Arab Emirates, offering both comprehensive and third-party plans with a variety of benefits.

4. Al Fujairah National Insurance Company (AFNIC)

AFNIC, the only insurance company in the entire UAE headquartered in the Emirate of Fujairah, holds almost 80% of its shares in state ownership. The company was founded in 1976 and operates in Sharjah, Dubai, Abu Dhabi, and Dibba. AFNIC is also one of the few auto insurance companies in the country that offers its customers the opportunity to purchase insurance products from insurance machines across the country.

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5. Noor Takaful Insurance

Noor Takaful is a fairly recent addition to the list of leading auto insurance companies in the UAE and the first company to comply with Law 6 (Federal). throughout the Middle East. Combining the contemporary needs of customers with the traditional, heartwarming values ​​of Sharia, Noor Takaful Insurance Company offers ideal auto insurance plans that proudly combine modernity and tradition.

6. Adamjee Insurance

Adamjee Insurance is one of the top names that come to mind when it comes to the best car insurance companies in the UAE. Adamjee works in cooperation with the Ministry of Economy and was established in 1960 as a public body registered on the Pakistan Stock Exchange. With a diverse business portfolio, Adamjee is well known in the United Arab Emirates for offering comprehensive auto insurance plans.

7. Tokyo Marine Insurance

Tokyo Marine is the largest non-life insurance company in Japan and has been equally important in the UAE insurance market since 1976, although it was originally incorporated in Japan in 1879. Besides the United Arab Emirates, Tokio Marine serves customers from 44 other countries worldwide and is known as one of the best car insurance companies in the world. Tokyo Marine today offers a wide range of comprehensive auto insurance plans as well as third-party liability insurance for customers in the UAE.

8. Abu Dhabi National Takaful Society

Abu Dhabi National Takaful Company strives to provide ideal customized takaful insurance solutions to the regional insurance market in Dubai and UAE. The Abu Dhabi National Takaful Company was founded in 2003 and is headquartered in Abu Dhabi. It is also registered as the very first of the Takaful insurance companies in the UAE and is recognized as one of the top auto insurance companies in the country.

9. Salama Takaful Insurance

Salama is the oldest Takaful insurance company in the United Arab Emirates offering a wide range of Shariah-compliant insurance products. Established in 1979, Salama has been a shining star in the takaful insurance industry since its inception. It offers wonderful comprehensive auto insurance plans with a variety of benefits and add-ons as additional benefits for the customers, making it one of the best auto insurance companies.

10. RSA Insurance

With over 60 years of experience serving its clients in the United Arab Emirates, RSA Insurance is a big part of the country’s insurance sector. The company’s original roots go back around 300 years. RSA is a highly reliable auto insurance company in the country, operating in the UAE since 1956, offering a variety of different auto insurance plans with an extensive list of benefits.

Comprehensive Car Insurance – Conclusion

If you paid for your vehicle in full and can’t afford comprehensive insurance, or if you own an older car that isn’t worth much, you may feel that you have a very low risk of non-collision damage. In this case, you can do without comprehensive insurance. If you prefer to insure yourself, you can also opt for comprehensive car insurance.

But keep in mind that in this case, not having comprehensive insurance means you could end up with a hefty repair bill if your car is damaged. So weigh the cost of repairs against the premiums or deductibles to maintain full coverage.

Comprehensive Car Insurance – FAQ

When can I add extended coverage to my policy?

In principle, you can add extended coverage to the following policies at any time:

  • Car insurance
  • Motorcycle insurance
  • Rv insurance
  • Boat insurance

You may also be able to purchase comprehensive coverage for ATVs, golf carts, snowmobiles, and other vehicle types.

Is Comprehensive Car Insurance compulsory?

Comprehensive coverage is not required by law in any state but is typically required by lenders when you lease or finance your vehicle. Full ownership of your vehicle can help you decide if comprehensive coverage is worth it.

Is Comprehensive Car Insurance worth it?

If you don’t need comprehensive coverage from your leasing or financing company, whether you need comprehensive insurance depends on the value of your car, your personal preferences, and your financial situation.

If your vehicle’s market value is relatively low and you have a higher deductible, for example, comprehensive insurance may not be worthwhile. On the other hand, it may be worth it if your vehicle has a higher cash value or if you can’t afford the cost of repairing or replacing your vehicle out of pocket. If you prefer to be covered against contingencies, comprehensive insurance can help give you peace of mind behind the wheel.

Is Comprehensive Car Insurance the same as full coverage?

Collision Damage Waiver is defined as coverage for damage to your vehicle that is not related to a collision, which is why it is sometimes referred to as “other than collision coverage”. “Total coverage,” on the other hand, is an ambiguous term that is commonly used to refer to both comprehensive coverage and collision coverage, as well as any other coverage that your state requires. For example, liability insurance is a mandatory coverage in most states, while renewal is optional.

What is the difference between all risks insurance and comprehensive insurance?

Comprehensive Car Insurance and collision coverage both insure your car, but they cover different events. The fully comprehensive insurance protection covers damage caused by events for which you are not responsible, such as theft, vandalism, animal strikes, glass breakage, fire, and weather-related incidents (e.g. hail).

Collision insurance protects against damage to your car caused by a collision with another vehicle or object, regardless of fault.