Comprehensive Insurance Considerations
What we all know about comprehensive insurance is that it offers fairly comprehensive coverage in all cases. Very different from the basic plans, this type of policy covers large claims and even some damages caused by the driver himself.
To tell the truth, the quality jump of this policy in terms of benefits is proportional to its high cost. Of course, this type of service is not for all clients, nor for every moment. In addition, although it is one of the most complete coverage on the market, it has its limitations.
Therefore, we must think carefully about our investment and review the type of contract. Next, we will analyze a little more what full risk insurance is like.
What is comprehensive insurance like?
Comprehensive insurance is one of the most complete coverage offered by insurers in Spain. Its main advantage is that it covers almost all types of damage, going far beyond repairing a claim caused by a third party.
Small bumps, incidents while the car is parked and damage caused by the driver make this contract an attractive offer. To that we must add the coverage of the vehicle due to total loss. Most companies cover the value of the car as if it were new for the first 2 years.
Of course, there are aspects that influence the quality and feasibility of the contract. Sometimes we do not take them into account, but they are essential when making our choice.
With or without franchise?
This type of insurance is presented by companies under two types: with and without excess. When they tell us that it is without excess, the policy may have certain important limitations at the level of coverage.
On the other hand, when the insurance is franchised, it means that we must pay a money franchised by us for the repair of the vehicle. In short, a part of the repair is always our responsibility.
For example, we have a claim and the repair is assessed at € 1,500. If in advance we have franchised € 500 for the policy, then the insurer will pay € 1000 and we will take care of the amount of the excess.
The good thing about this type of arrangement is that the cost of the premium and fees can be substantially reduced. Perhaps the least prominent point about franchise policies is that the least expensive repairs are always the responsibility of the vehicle owner.
The limitations of this comprehensive coverage policy
The fact that comprehensive insurance can respond to large claims and costs does not mean that it covers everything. Some contingencies such as atmospheric damage and natural disasters are exempt.
Another very recurring limitation has to do with the reimbursement for total loss of the car. Almost always, insurers pay for the damaged vehicle as if it were brand new for the first 2 years only. This clause generally changes in the third year, taking as a reference the price of the model in the market.
Another thing to remember is that this type of insurance does not cover damage to non-standard parts. Customers must be very attentive to the spare parts purchased and modifications made to the vehicle.
As we are seeing, comprehensive insurance has its limitations and you have to read the fine print of the contract very well.
When is it convenient to take out this type of insurance?
Most analysts in the field recommend opting for this type of coverage when buying a new car. The problem is that not everyone can buy a policy of this magnitude. This is what happens, for example, with young drivers due to mistrust of the insurers themselves. The compulsory third party insurance rises in these cases, and the all risk much more.
Those who are over 25 years old, have a new car and have the money to join these products, should do so without much thought. Reimbursement for total loss and the possibility of facing small costly damages represent an excellent protection to our assets.
The important thing is to conscientiously read and compare the different proposals that exist on the market. Failure to do so could mean obtaining a non-disadvantageous deal and monetary losses to consider.
