What does limited comprehensive auto insurance cover?

Terms for Limited Comprehensive Coverage

Each insurance company uses a different term for this coverage. Commonly used terms include:

• Third-Party Liability – Additional Coverage
• Third-Party Liability – Mini Comprehensive Coverage
• Third-Party Liability – Limited Comprehensive Coverage

What coverage does limited comprehensive insurance provide?

It is a combination of two types of insurance: liability insurance and limited comprehensive coverage. The third-party liability portion provides coverage for damage for which the driver of the car is liable. The limited comprehensive coverage portion compensates for 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 provides compensation for the following causes:

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

The benefit payment does not count toward the no-claims years

The premium you owe depends largely on the number of claim-free years you’ve accumulated. With some insurers, the discount can be as high as 85%. If you file an insurance claim, your number of claim-free years decreases. Damage covered under limited comprehensive coverage does not count against your claim-free years. A claim under liability insurance or all-risk coverage does count against them, but a claim under limited comprehensive coverage does not. A broken windshield may cost you an deductible, but it will not cause your premium to increase.

When should you choose limited comprehensive coverage?

For new and young cars, choose comprehensive insurance (third-party, collision, and comprehensive coverage). This coverage also reimburses you for damage to your own car in the event of an accident. For older cars with little value, third-party liability insurance is the most logical choice. This type of insurance only pays the other party in the event of damage caused by your fault. Partial coverage is a middle ground. This type of insurance is often chosen for cars between 6 and 10 years old. However, it’s often still recommended for cars older than 10 years—especially if the car still has a high market value.

Why is limited comprehensive coverage recommended?

Limited comprehensive coverage is slightly more expensive than basic liability coverage. When you weigh the higher premium against the additional coverage, limited comprehensive coverage is definitely recommended—especially now that extreme weather conditions are becoming more common. In a violent hailstorm with hailstones the size of ping-pong balls, your car can turn into a pancake pan in just one minute. The cost of dent repair is steep. Often, the repair costs exceed the car’s current market value.

Other Coverage

• Third-Party Liability Coverage
• Limited Comprehensive Coverage
• Comprehensive Auto Insurance (All-Risk)

Benefits of Limited Comprehensive Insurance

The coverage provided by a limited comprehensive insurance policy is much more extensive. A heavy hailstorm can cause damage amounting to thousands of euros. While choosing a policy with limited coverage may save you on premiums, it can actually end up costing you a lot of money in the event of a claim.

Limited comprehensive insurance is often only slightly more expensive than liability insurance, and you get much more extensive coverage. The difference in premiums is particularly small for car owners with many claim-free years. The discount can be as high as 75 percent or even more. The discount makes the difference even smaller.

Weather conditions are becoming increasingly severe due to climate change. As a result, your car can sustain significant damage in just a few seconds. In addition, the risk of theft in the Netherlands is relatively high. Approximately 30,000 cars are stolen each year. You shouldn’t underestimate this risk. With limited comprehensive coverage, these types of damage are insured.

Damage covered under limited comprehensive coverage does not affect your numberof claim-free years. For example, in the case of hail or storm damage, you do not have to pay for it out of pocket to avoid a significant premium increase. However, filing a claim under the liability portion of your auto insurance will cost you claim-free years.

See also:

• Step-by-Step Guide – Switching to a Different Car Insurance Policy
• Car Insurance Coverage: What Types of Coverage Can You Choose?
• Switch my auto insurance to third-party liability coverage?
• Significant Differences in Policy Terms and Conditions
• How do you insure a car on the weekend?
• Insuring Your First Car
• Car Insurance – When Does the Insurer Not Provide Coverage?
• Do you have negative claim-free years on your record? What should you do now?
• Check out the pros and cons of supplemental insurance