This graphic is a good way to illustrate the different types of coverage under a motor insurance policy. You need to know how the covers differ from one another, but more importantly, how the premiums differ among the covers.
The premium is for my 9 year old Datsun Cefiro insured with Direct Asia after a 20% no claim discount.
Comprehensive - $958 covers damage to my own car (but is subject to an "excess"), loss due to fire and theft and damage and injury caused to third parties due to my fault.
Third party fire and theft - $766 covers loss due to fire and theft and damage and injury caused to third parties due to my fault, but does not cover damage to my own car.
Third party only $690 covers damage and injury caused to third parties due to my fault, but does not cover loss due to fire and theft and damage to my own car.
Under the comprehensive cover, there is the choice of the value plan, the value plus plan and the flexible plan, which covers different groups of drivers and vary the premium accordingly.
Which type of cover will I buy? I will choose the third party only - value plus plan. It will cover my family members as well.
Lesson - your decision must be based on the difference in covers and the premium charged. You need to get the full detail to make an informed decision.
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