Although US law dictates that a vehicle owner is required to have liability car insurance, there are a number of advantages to taking out comprehensive car insurance coverage. A comprehensive vehicle insurance policy should provide the following:

1. Third Party Insurance

This portion of the policy will cover damages or injuries to any person with whom you have been in an accident if you were at fault. Insurance policies do however place limits on the amount that they will pay which could leave you out of pocket should a claim be filed against you.

A comprehensive policy should provide you with an amount of cover that will not leave you personally responsible for any payments to a third party.

2. First Party Insurance

First party insurance, also referred to as primary insurance, is aimed at covering the costs of your personal injuries or damages in the event of an accident. The amount that you can claim is also restricted in most policies and it is important to select cover that will pay for all your expenses as well as the total replacement value of your car in the event that it is written off.

3. Theft Cover

Comprehensive car insurance coverage should provide you with a payout should your car be stolen. The cover should provide for the replacement value of the vehicle as opposed to the actual value of the car. It is important to note that your insurance payout may be delayed in the case of theft in an effort to recover the vehicle. You can take additional cover to provide you with a car or cover transport costs during this period.

4. Additional Driver Insurance

Only the person listed on the insurance policy as the specified driver will receive compensation from the insurance provider in the event of an accident. Comprehensive insurance will provide you with the option to state one or more additional drivers on the policy who will receive cover.

5. Optional Vehicle Insurance

Your comprehensive insurance policy should provide you with a number of optional portions. These may include:

• A maintenance plan that will cover the cost of regular servicing of the vehicle as well as consumable parts such as tires, brakes, suspension, window wipers etc.
• Major breakdown insurance will cover the cost of repairs and replacement parts to your vehicle in the event of a major breakdown.
• Incidental insurance will pay for minor repairs of scratches or bumps to the car that are not due to an accident.