subject: All Risks Covered in Comprehensive Car Insurance Policy [print this page] All Risks Covered in Comprehensive Car Insurance Policy
We acquire car insurance, partly because it is mandatory by law and even to some extent as we will be repaid if in case there is any damage to our vehicle.
To recognize things much better, we should know the different types of risks that are included in a car insurance policy, more specifically for private car insurance policies.
The insurance company will pay out for damage caused by the following:
1. Loss or damage caused by fire, explosion, lightning
2. Loss or damage incured by robbery either your car itself is stolen or else say some part of the car gets stolen
3. Damage caused by riots or strikes
4. Loss or damage caused by earthquakes, floods, typhoons etc
5. Loss or damage caused by accidental external means
6. Whatever loss or damage caused by a terrorist activity
7. Any loss or damage caused due to a malicious act
8. Loss or damage caused by landslip
9. Damage caused while the car is in transit by road, rail, air or waterway
Great number of the incidents happen in point 5 Loss or Damage caused because of Accidental External Means. This would include road accidents as well as damage caused at the time when your vehicle was parked and you found it damaged on returning.
In some circumstances, similar to what took place in the Mumbai rains of 2005, a large number of cars got damaged as a result of heavy rain. The insurance companies would have had to bear large expenses because of such natural disasters. Most of the above-mentioned natural calamities are rare but the financial loss arising out of such incidents can be huge. Thats where acquiring the best car insurance policy counts the most.
In effect, if you go through the list above, almost each problems related with your car will be included, leaving nothing to chance. So make sure that you purchase a comprehensive car insurance policy to eliminate all risks. Moreover, by spending a small premium, you can gettake advantage of some interesting add-ons to your normal car insurance policy. It might be worthwhile to check out the features of these add-ons which differ from company to company.
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