Comprehensive insurance protects you against damage to your own car. But which is better: partially comprehensive or fully comprehensive insurance?
While motor vehicle liability insurance covers the costs of damage to someone else’s car after an accident, comprehensive insurance covers damage to your own car.
In order to be profitable, the contribution for partially or fully comprehensive insurance must be in a healthy proportion to the value of the vehicle. It’s not worth paying premiums for old and worthless cars because the insurance company only pays for damage up to the current market value.
Originally, the Spanish word “casco” referred to a balaclava for warriors, which is characterized by a low forehead and neck protection. The word was applied in the 15th century to the bulbous ships of the Hanseatic League and the boats of Christopher Columbus on his crossing to America, which floated in the water like upturned storm helmets due to the construction of their high fore and aft decks. The word “Kasko” is still used today for an empty ship’s hull. Since the ship drivers and shipowners increasingly had to protect themselves against the imponderables of sea voyages such as damage, destruction and piracy, they took out insurance for their ship hulls and their valuable cargo – hull insurance. The word has been adopted into other languages and has also applied to airplanes and cars since modern times.
In contrast to motor vehicle liability insurance, there is no obligation to take out partial or full comprehensive insurance. In contrast to motor vehicle liability insurance, insurers can even reject the application for comprehensive insurance. It is also not one of the indispensable policies. It’s far more important to insure your bones first than your sheet metal.
Car owners who opt for comprehensive insurance can choose between two variants: partially comprehensive and fully comprehensive. The benefits of the two safeguards differ.
Partially comprehensive insurance usually covers the following damage:
All the services of the partially comprehensive insurance are already included in the fully comprehensive insurance. In addition, the fully comprehensive insurance pays
Due to the different benefits, the premiums for partially comprehensive and fully comprehensive insurance differ significantly. Which insurance is the right one depends above all on the value of the car: If the car has been around for a few years, it is often no longer worth repairing scratches and dents.
Partial casco insurance is usually the better and cheaper choice. Even if the car is stolen or is a total loss after an accident, the money from the fully comprehensive insurance is usually of little help because only the current value is reimbursed.
Comprehensive insurance is often useful for new cars because the car is still worth a lot. Here it can be worth paying the higher premium. This is especially true if the car is financed by a loan. On the one hand, the banks want to protect themselves financially, on the other hand, you will otherwise pay for years for a car that has already been scrapped. Regardless of the type of financing, new car owners should consider including a new value compensation in the fully comprehensive insurance.
Insurance premiums depend on a variety of factors. This is how insurers try to calculate the probability that they will have to settle claims. In order to lower the contributions, insured persons can agree on a deductible with most companies. The higher the deductible, the lower the premium to be paid.
When calculating the premium for partial comprehensive insurance, the place of residence (regional class) and the insured vehicle model (type class) are important factors: Anyone who lives in a region where many accidents happen or drives a car that is frequently stolen must have a pay an increased fee. The annual mileage, the age of the driver and the date the driver’s license was obtained also play a role.
No-claims discounts, on the other hand, are not taken into account. However, they influence the premium amount in fully comprehensive insurance. The no-claims class provides information about how long a driver has not had any damage regulated by the insurance company. With every year without a claim, the no-claims class increases. Similarly, the premium rate of the insurance customer decreases. For policyholders with a high no-claims bonus, it can therefore even be cheaper to be insured with fully comprehensive insurance and not with partial comprehensive insurance.
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