What Is Comprehensive Insurance & When Do You Need It?
If you’re shopping for car insurance or reviewing your current policy and considering comprehensive car insurance in Singapore, you might want to learn a few things about this policy. Considering the additional cost you’re required to pay, it’s reasonable to ask, “What is comprehensive insurance going to do for me?” “What does it protect, and how is it different from other coverage?”
Read on to find out the answer to these questions and more.
Do you Need Comprehensive Coverage?
When it comes to car insurance, it’s important to note that you have a couple of choices. These are:
Third-Party Liability Coverage: Being the most basic plan, this car insurance covers bodily injury or death to a third party, as well as damage to someone else’s property. It doesn’t cover you or damage your vehicle.
Third-Party plus Fire and Theft: As the name suggests, this covers fire and theft on top of what’s covered by third-party liability coverage. However, it doesn’t also cover damages to your vehicle.
Comprehensive insurance: It’s the highest level of protection you can get for your car in Singapore. It covers everything, including what Third Party, Fire, and Theft covers, as well as personal injury and medical expenses after an accident. It can also cover accidental damage to your car, even if you were at fault. So, it’s like protection against bad luck should the unthinkable happen to your car. You might need comprehensive car insurance in Singapore if:
- You drive a new, modern car (less than six years old or 100,000 miles)
- You have a fancy car such as a BMW/Mercedes. These cars are a huge investment and are often at a higher risk of being stolen and cost more to repair and maintain
- You live in a metropolitan area/city with a high risk of accidents, traffic, pollution, etc.
- You cannot afford to replace or repair the car if it’s damaged.
- You regularly visit dangerous places and cities in your car. Comprehensive car insurance can safeguard your vehicle in an emergency, and you can also consider a roadside assistance add-on.
- You have a high-risk driver on your policy, like a young adult under the age of 25 years.
Comprehensive Insurance Exclusions
Comprehensive car insurance in Singapore covers any unanticipated incidents except collisions. It does NOT cover damages to your car or another person’s vehicle from a collision and your (or your passengers’) medical expenses following an accident. So if you want to insure yourself against collision, you need to purchase collision coverage. It’s a separate coverage from Comprehensive car insurance that helps pay to repair your vehicle if it’s damaged in a collision. This can be in the form of collusion with another vehicle or an object, such as a fence and single-car rollover accidents.
Comprehensive car insurance covers losses incurred during an accident, theft, fire, or natural calamity. It can also help pay for damages in case of vandalism, damage caused by objects such as trees or animals, or when you’re caught in civil disturbance such as riots as well as the other driver’s vehicles or property. However, certain things aren’t compensated under comprehensive car insurance. Here are some common exclusions:
- Depreciation of a car
- Wear and tear from aging
- Electrical or mechanical breakdown
- Damages to a car while driving without a valid driving license
- Damages to a car for driving under the influence of alcohol and other intoxicants
- Damage or loss of car in a war or nuclear risk
- Damage or loss of a car in an area outside the geographical scope highlighted under the policy
Is it Worth Getting Fully Comprehensive Car insurance?
Many people make the mistake of purchasing third-party insurance because it’s cheaper, but they are left with huge expenses when involved in an auto accident. Purchasing comprehensive car insurance in Singapore can be a blessing for car owners because it provides financial help on your vehicle’s replacement and repair expenses in case of an accident or unforeseen damage. It saves you money by providing full coverage to your car and covering you legally by offering to compensate third-party damages. It’s safe to say that it’s worth having a comprehensive car insurance policy, especially if there is a high risk or monetary value involved.