No matter how experienced and careful you are in driving, several uncertainties may still occur on the road. To avoid getting yourself entangled in costly repairs or part replacements, purchase a comprehensive motor insurance plan.
Comprehensive insurance has your back in the event your car is damaged by an insured event or if you caused damage to someone else’s car and property. However, do not confuse it with third-party insurance because the latter only covers your liability against a third party.
Understanding Comprehensive Automobile Insurance
As the name suggests, a comprehensive plan can cover you for a wide range of accidental damage and other instances, including:
- car theft, damage from theft
- theft of certain parts of the vehicle
- vandalism, fire, riots, and explosions
- falling trees, limbs, rocks, and other objects
- storms, hail, wind, floods, lightning, and earthquakes
- contact with animals (i.e., hitting or being hit by an animal)
When you purchase comprehensive car/motor insurance in Singapore, the insurance company usually sets a deductible or the amount you pay out of pocket toward a covered claim. Supposed you agreed with a S$500 deductible, and your car got into weather-related damage. If the damage repair costs S$1,500, you will pay your S$500 deductible, and your insurance would pay the remaining $1,000.
Benefits and Limitations of Comprehensive Insurance
Comprehensive auto insurance is designed to pay for repair and replacement costs caused by several variables. This benefit alone not only protects you financially but also ensures that your road buddy gets back into its best condition in no time.
You would not cause a fuss or panic when your vehicle is destroyed by a natural disaster, dented by a run-in with a deer, damaged by protesters, spray-painted by tricksters, or crushed by a collapsing tree, among other causes. And, that is all because the insurance has you covered.
On the contrary, this motor insurance also has its limitations. Although this policy has comprehensive on its name, its coverage does not include collision. If you are responsible for an accident, your plan will not pay for the damage, injury or fatality you caused to a third-party person.
Here are more things that most comprehensive policies do not cover:
- damage due to potholes
- personal belongings inside the car
- the car has driven by an authorised or unlicensed driver
Also, comprehensive car insurance may be expensive if you purchase it along with collision insurance. It may not be necessary, especially if you own an old car with high mileage, and if weather-related events are not concerns where you live.
Choosing Your Motor Insurance in Singapore
Now, are you torn between comprehensive and collision coverage? We summed up their key benefits and exclusions in the table below.
|Feature||Comprehensive Insurance||Collision Insurance|
|What It Covers||Damage to your car resulting from the following incidents:||Damage you sustained from the following instances:|
|What Is Not Covered|
|Coverage Limit||Actual cash value||Actual cash value|
|When Is It Safe to Cancel|
Summing It Up
Every accident is unique. You may encounter a wide variety of circumstances, both while driving and while your car is parked.
A windshield shattered by a traffic incident, a deer accidentally hit your side mirror while crossing the road, and auto-related crimes like theft and vandalism—all these things and more are covered under comprehensive car insurance.
Are you still uncertain about getting this motor insurance in Singapore? Then, reassess your needs and your location. If you live in an area with inclement weather, has rampant animal-related auto accidents, and is prone to flood and other natural catastrophes, you might want to consider getting comprehensive coverage.