Reasons to Invest in a Comprehensive Car Insurance Policy

Comprehensive insurance policies are designed to give you peace of mind, no matter what the situation, your needs will be taken care of.

What is comprehensive car insurance?  Why do I need to take out extra insurance? Isn’t my car’s manufacturer’s warranty enough?

Contrary to popular opinion in some sectors of society, comprehensive car insurance is not the same as your car’s manufacturer’s warranty. They might cover the repair and replacement of similar parts; however, under very different circumstances.

What is comprehensive car insurance?

Comprehensive car insurance is one of the highest levels of insurance you can get for your motor vehicle. It covers you for any damage to your car as a result of a motor vehicle accident, theft, or natural disasters. In the case of a car accident, your comprehensive car insurance will even cover the damage to the other cars that were involved in the accident.

What is a manufacturer’s warranty?

A manufacturer’s warranty, on the other hand, covers you for the repair or replacement of most of the mechanical, electrical, and electronic parts of your motor vehicle. These parts are only replaced if they are defective or break due to normal wear and tear. This warranty is a factory warranty and covers the car for a certain time period or a certain mileage, depending on whichever comes first. In other words, your car’s manufacturer’s warranty might specify that it will cover the repair or replacement of the specified parts for three years or 60 000km. If you travel a lot, it is highly likely that this warranty will expire in less than 3 years but with 60 000km on the clock. On the other hand, if you do not travel a lot, it is probably that the manufacturer’s warranty will expire after 3 years and with about 20 000km on the clock.

Reasons to sign up for a comprehensive car insurance policy

Now that the differences between the two types of warranties are clear, let’s look at some of the reasons why it is important for you to sign up for the latest policy for NRMA comprehensive car insurance from Warranty and Insurance:

  • NRMA insurance is a solid reliable company with a reputation for looking after Australians’ motor vehicles for over 85 years.
  • They offer fully comprehensive cover against motor vehicle accidents, theft, and natural disasters such as floods, storms, landslides, earthquakes, tsunamis. They do not offer cover in the event of your car being involve in a war or in a riot, even if it is inadvertently parked on the side of the road where the riots have erupted.
  • You can claim for windscreen repair, trailer or caravan damage, severe weather damage, storage costs, personal items that were in your car at the time of the incident, emergency repairs to get you home or to the dealership, damage to another vehicle, and damage to your car by an uninsured driver.
  • If you do not have comprehensive insurance cover,  and you are involved in a motor vehicle accident, not only will you be responsible to pay the full cost of the repairs to your own vehicle, you will also be held liable for damage to the other vehicles involved in the accident, especially as the accident was deemed to be your fault.

Final words

We have seen that it is a very good idea to take out a comprehensive insurance policy. Should you be interested in discussing your options with a skilled consultant or just understanding more about comprehensive insurance policies, you can click here for more information.