When it comes to auto insurance policies there are two main types that most people avail of, fully comprehensive insurance and third party insurance. A comprehensive plan will always provide more coverage for the insured than a lesser policy and for this reason they are usually a more expensive option.
Full Comprehensive Car Insurance
Unlike third party policies which only cover the cost of damages or injuries caused to others by you, or third party fire and theft with gives your vehicle minimal cover against fire and theft, full comprehensive car insurance will fully cover both the injured party and the damages or costs incurred for your vehicle. A full auto insurance policy will cover exactly the same risks as a TPFT policy with added additional coverage for accidental damages such as windscreen damage.
There are many benefits to taking out a full comprehensive auto insurance policy, the major one being that you are insured for and can claim for accidents without the need to prove fault after the accident occurs. Regardless of the third parties involvement, whether they are at blame or even if they are uninsured, with fully comprehensive you can still claim for your damages.
While fully comprehensive will cover your vehicle against almost everything, depending on the insurer your car may not actually be 100 per cent insured. Many insurers will not insure the full value of a vehicle so it is not uncommon to find that your policy will only cover 80 per cent of the value of the insured vehicle.
Comprehensive insurance is not, however needed for all cars, cars that are valued at under $1500 for example may benefit more from less cover. In general if the value of the car does not exceed the cost of the insurance then switching to a cheaper policy would be more beneficial.