What is the difference between fully comprehensive and third party insurance?
April 1, 2022 | 30,00 EUR | answered by Ingo Gallenberg
Dear insurance lawyer,
My name is Max Netz and I have a question regarding my car insurance. Currently, I am insured with my insurance company with partial coverage insurance. Lately, I have been considering whether it would make sense to switch to full coverage insurance. Unfortunately, I am unsure about the exact difference between the two types of insurance and whether a switch would be beneficial for me.
Currently, with my partial coverage insurance, I am only covered against specific risks such as theft, glass damage, or accidents involving wild animals. However, I am not fully covered for damages that I cause myself. This is where full coverage insurance comes in, as it also covers damages to my own vehicle, regardless of who caused the accident.
My concerns revolve around not being able to accurately assess whether the higher costs of full coverage insurance compared to partial coverage would be worth it. Additionally, I am wondering if there are certain factors I should consider in my decision.
Could you please explain to me the specific difference between full coverage and partial coverage insurance, and the advantages and disadvantages of full coverage insurance? Are there specific situations where switching from partial coverage to full coverage would be particularly recommended? I would greatly appreciate your professional assessment.
Thank you in advance for your help.
Sincerely,
Max Netz
Dear Mr. Netz,
Thank you for your question regarding the differences between partial and comprehensive car insurance, as well as the advantages and disadvantages of comprehensive car insurance. I will try to answer your questions as comprehensively as possible.
The main difference between partial and comprehensive car insurance lies in the scope of covered risks. Partial car insurance usually covers damages caused by external events such as theft, glass damage, collisions with animals, storm or hail. However, damages caused by yourself to your own vehicle are not covered. This is where comprehensive car insurance comes in, as it not only covers the benefits of partial insurance but also covers damages to your own vehicle, regardless of who caused the accident.
One significant advantage of comprehensive car insurance is that it provides more extensive coverage and also covers damages to your own vehicle. This can be particularly useful for new or high-value vehicles, as repairs or total losses can quickly incur high costs. However, the premiums for comprehensive car insurance are usually significantly higher than for partial insurance, as the risk for the insurance company is correspondingly greater.
Whether switching from partial to comprehensive car insurance is worthwhile for you depends on various factors. Firstly, you should consider the value of your vehicle. For an older vehicle with low residual value, comprehensive car insurance may not be cost-effective. Your personal risk tolerance also plays a role. If you find yourself in accident situations frequently or are unsure if you could cause damages yourself, comprehensive car insurance may be a good option for you.
Overall, comprehensive car insurance offers more comprehensive coverage but comes with higher costs. When deciding for or against comprehensive car insurance, you should consider individual factors such as the value of your vehicle, your driving behavior, and your personal risk tolerance.
I hope that this information has been helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Ingo Gallenberg
