The question of whether it is better to take out comprehensive car insurance with a deductible, comprehensive cover without a deductible, or extended third-party cover has always been open to debate. In recent years, as everyone has become more focused on saving on insurance, this reflection has become even more relevant.
To decide whether comprehensive insurance with or without a deductible is worthwhile, we need to consider the following factors.
- First, of course, we need to analyse the price difference between the two types of insurance.
- The second factor is the amount of the deductible. Insurers will require the client to pay that deductible for each claim or file opened. It is therefore useful to know how many vehicle parts can be included in each own-damage claim. Be careful, because this is currently changing among some of the main insurers in the market. Ask your insurance broker about the number of parts allowed per claim.
- If we have been driving for several years, we can also estimate the number of own-damage claims we usually report each year.
The following questions will also help us gather more information before deciding:
- Do we usually park on the street? Do we park in a narrow garage with columns? Do we park in a rural area or on private land?
- Do we drive many kilometres per year? Do we mostly drive in narrow city streets or on main roads and motorways?
The answers to these questions can give us an idea of the likely frequency of own-damage claims. Together with the rest of the information, they give us more criteria to decide whether or not to include a deductible in a comprehensive policy.
To assess whether it is advisable to move from comprehensive insurance to third-party insurance, extended or otherwise, it is useful to know how the insurer will value the car according to its age. This gives us a reference point for when a repair may be treated as a total loss. This information can be found in the general conditions of the policy, or more easily by asking your insurance intermediary.
The option of third-party cover with theft, fire and glass can make car insurance much cheaper, but it will leave out parking damage and damage to the vehicle when there is no liable third party. This type of policy is usually not used until the vehicle is more than four or five years old. Some clients wait much longer before removing comprehensive cover.