An additional insurance is a type of car insurance that provides financial protection against damage or theft. If you mark the difference between the obligatory and voluntary types of insurance, the first one protects you from liability for damage caused to other people in the event of an accident due to your fault, but does not compensate for your own losses, and the second auto insurance - on the contrary, protects you regardless of who was guilty in causing damage. That is why the 1st one is a compulsory type of insurance, and the 2d is voluntary.
Why Is the Additional Insurance More Expensive?
There are objective reasons for this. First of all, it does not have an upper limit of the insurance amount - it directly depends on the value of the car, which is stipulated in the insurance contract. In the case of the voluntary insurance, you can insure a car of any value with the possibility of full compensation in case of damage or theft - that is, the insurance payment can easily amount to several thousand dollars. But the flip side of such a potential payout is the high cost of insurance. In addition, it is worth remembering that it is designed to cover all your mistakes (except for those explicitly stipulated in the contract) and all possible risks, which means that the volume of these risks is bigger than in the case with the main insurance.
What Does the Cost of Insurance Depend On?
As mentioned above, the comprehensive insurance value is largely dependent on the sum insured - that is, the one in which the car is valued under the contract. However, the final price tag also depends on several factors: in this paragraph we will mention only those that cannot be influenced during the design of the insurance policy. For a start, this is the driving experience of people who will drive a car: it is logical to assume that an inexperienced driver is more likely to damage a car and ask for payment. Another factor is the insurance history.
If you already have several accidents due to your fault, the next policy will most likely cost you more. Well, one more parameter that you cannot influence is the car's cartilability. Cars that are popular with hijackers are in the “high-risk group”, and the insurance value for them, respectively, may be higher. So, you have chosen a car, and you can no longer influence it, as well as your experience and insurance history. But on the final cost of the comprehensive insurance - you can influence very much, and moreover, significantly. To do this, you must correctly determine the kind of insurance and car protection you need for your car. If you still have doubts not knowing which insurance to choose, then check all insurance types here.