What Is Comprehensive Motor Insurance?
We have heard a lot of rants and murmuring about comprehensive motor insurance whenever something bad happens to vehicles on the roads of Ghana. But what exactly does the term mean?
According to Investopedia, comprehensive motor insurance is an extensive vehicle insurance plan that covers the insured person against both, own damages and any third party liabilities.
In short, this type of insurance policy will cover your vehicle but not be limited to, if it is destroyed by a natural disaster, dented by an animal, spray-painted by a vandal, damaged by a break-in, or crushed by a collapsing garage.
If you are the owner of a car, meaning if you have financed a car yourself, you are highly advised to settle in for a comprehensive insurance policy through its premium is quite expensive.
What Does This Insurance Cover?
So we keep preaching the goodness of this insurance policy when it comes to providing car owners the best protection in unforeseen situations. But what at all does the policy cover?
- Damage caused by natural disasters
- Fire and Theft
- Vandalism or damage caused by contact with an animal
- Damage to a third party
- Damage to your vehicle caused by falling objects such as trees
- Damage or destruction of your vehicle caused by an act of civil disturbance
Benefits of This Motor Insurance
- Unlike third-party insurance, it covers damages caused to your own car during an accident
- Peace of mind, financial protection, and also financial aid in case your car is written off
- It is the highest level of protection you can give your car
- In cases where you are found to be at fault in event of an accident, with comprehensive insurance, you can claim for losses incurred in such situations.
- It covers lawsuits, including legal fees brought against you as a result of an accident.
What Is The Price of Comprehensive Motor Insurance?
As already made clear, because of the wide coverage of this policy, it has the highest premium payment in the car insurance business.
It is to be made clear that insurance premiums under this policy are based on the type of car being insured and the cost of purchasing the car.
However, on average, a car owner in Ghana is expected to pay GHC1000.00 a month in order to be offered a spot under the policy in any insurance company.
Around the world, the price of this offer is not much different. The insured will have to pay nothing less than $200 elsewhere in the world for comprehensive motor insurance.