Insurance is a written contract between a firm or an individual and an insurance company. The insurance company undertakes to protect the insured against any losses arising from the insured risk. Insurances policies include car insurance, health insurance, life insurance, and home insurance. The insured has to make regular payments (premiums) for the contract to be effective.
Why Do You Need an Insurance Policy?
• It helps take the insured back to the initial financial position before the insured risk occurs.
• Investment options – you can invest a large sum of money in the form of premiums. Especially in other forms of insurance such as life insurance
• It creates employment opportunities for those who work in the insurance companies, such as agents and actuaries.
• The government earns income (revenue) in the form of the tax paid by the insurance company.
Cars also need insurance cover as this is a requirement by law in many countries, if not all. Under car insurance, there are several types of policies; including third-party liability covers, personal accident cover, zero depreciation insurance, and comprehensive car insurance, among others. Read on to find out more information about the comprehensive car insurance policy.
What you Should Know About Comprehensive Car Insurance
Comprehensive insurance is a type of insurance policy that allows you to replace or repair a motor vehicle if it has been damaged or stolen. It is also known as collision policy. And it covers damage caused to a car from falling items like trees, fire, and theft. Generally, it covers the car, the driver, and the passengers.
In Singapore, there are several types of car insurance policies. But you will find that a majority of the car owners go for the comprehensive insurance policy. And these are the reasons why;
- Covers your car as you drive overseas – as you plan to travel to Malaysia and Thailand. You are assured of safety back to Singapore with the additional benefits that the comprehensive car insurance offers; including emergency expense and assistance, and towing benefits.
- Choosing your workshop – this type of car insurance gives you the opportunity of choosing a garage of your choice. You choose where you would want your car repaired.
- Tailor-made – the insurance policy is made to fit what you want. You get the chance to make inquiries and mention your concerns so that the policy is adjusted to pay for the services you are enjoying. If you need additional insurance-based services, the company can add them depending on what is on offer.
- Claims promise – as long as the damage caused to your car was not through your fault, then it’s an assurance that you will be compensated fully, and your No Claims Discount will likely not be touched.
- Accessory benefits– this cover allows you to replace car accessories when need be, for example, worn out or out of date.
- Home service – In case an accident happens while you are driving in Singapore and your car cannot be driven, it should not worry you how you will get home as you and your family will be taken home safely.
- Roadside assistance gives you peace of mind while driving around, especially for the new drivers who usually don’t know the procedure to follow when an accident occurs. You can ask for assistance any time of the day from the insurer should an accident occur.
A comprehensive car insurance policy is the way to go if you own a car in Singapore. The policy covers the basics and even natural phenomena such as floods rampant in Singapore. The fact that the policy is tailor-made to suit most of your needs makes the deal even sweeter.