Partial or comprehensive auto insurance: What's the difference?

Limited or comprehensive auto insurance

The choice you make between comprehensive and limited comprehensive auto insurance depends on various factors. For example, comprehensive coverage is the most expensive type of auto insurance. This coverage is the most extensive. As a result, the premium is also higher, because the insurer assumes the greatest risk with this type of coverage. Price will therefore be an important consideration when choosing coverage. The age of the car is also a factor. Generally speaking, you won’t insure a somewhat older car with comprehensive coverage, because it simply isn’t worth it anymore.

When should you choose third-party liability coverage?

Third-party liability coverage is the cheapest, but also the most basic type of coverage. In the Netherlands, as a car owner, you’re required to have at least third-party liability coverage for your car. With third-party liability insurance, you’re only covered for damage to third parties. This means you cannot file a claim with your auto insurance for damage to your own car. Due to its limited coverage, this type of auto insurance is more suitable for older cars with a lower current market value.

When should you choose limited comprehensive coverage?

If you feel that third-party liability coverage is too limited, you can opt for limited comprehensive coverage. This coverage is a middle ground between third-party liability coverage and all-risk auto insurance. The premium is slightly higher than for third-party liability coverage, but you’ll have more extensive coverage. The limited comprehensive portion covers damage caused by a number of events listed in the policy terms and conditions. The exact coverage may vary slightly by insurer, but broadly speaking, it covers the following causes:

• Collisions with Stray Animals
• Theft and Damage Resulting from an Attempted Theft
• Hail Damage and Storm Damage
• Lightning Damage
• Fire and Explosion
• Window Breakage

When should you choose comprehensive coverage (third-party liability and collision)?

Comprehensive coverage is the most extensive type of auto insurance. It also covers damage to your own car if you cause an accident. The premium for comprehensive coverage is therefore higher than for limited coverage. For new cars up to about 6 years old, this coverage is standard. However, it may also be advisable for cars older than 6 years to purchase comprehensive auto insurance instead of limited coverage. These days, cars easily last 15 years. That’s why an 8-year-old car can still have a high current market value. Whether you choose limited or comprehensive coverage will therefore depend on the car’s value. Moreover, it’s naturally up to you to decide how much you want to pay in monthly premiums. By comparing car insurance policies, you can make an informed decision.