comprehensive insurance - someone pls explain
hi guys, i just had an accident last rainy Friday morning. my car slid down the next car, as it was muddy, and even on brakes, my car kept sliding towards the car ahead of me.
anyway, my car is on comprehensive insurance, and is 3 years old. my insurer advised me today that i have to pay 40% of the cost of spare parts. i thought full insurance meant FULL.
so what's the use of paying a lot for comprehensive insurance, if i have to pay almost half the cost of spare parts? what is it that they cover? i dont understand ....
correction: guys.
well, thanks for all your posts, guy. this is my first time to have to deal with such things, sure was great help.
This clause was not part of the vehicles insurance policies some years ago. I do not know what is the legal basis of such conditions.
The funny part is when your car is hit by another car and your liability is ZERO%. You as a victim but still have to abide by the conditions of the third party terms of the other car. where as you have nothing to do with the agreement between the owner of the other car and the insurance company. Yet you might need to pay 40 to 50% of the costs of your car's spare parts. Simply. This is 100% B*ll Sh*tt
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In a nutshell, this is how its calculated. Assume your car is for 100K,
1st year, total insured value is 100k,
2nd year, insured value is 80K (100-20 depreciation)
3rd year, insured value is 60K (100-40K depreciation)
4th Year, insured value is 40K .. and there on.
your car being in the 3rd, year, the insurance company has charged a 40% depreciation, that is what they meant by your having to pay 40% of the spare parts.
You would need to look at the actual clauses in the contract.
In addition there is generally a first deductable and this tends to determine the rate you pay therefor the higher the fires deductable the lower the rate. ie the owner takes more risk
Did you read the Fine prints of your insurence policy before buying the insurance? Check the excess clauses in the policy.
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