New Car Insurance: How is it Different From Comprehensive Auto Insurance

Insurance policies for cars are very important and mandatory but there are a lot of insurance policies satisfying different needs thus making the consumers more and more confused about these policies. The comprehensive auto insurance and the new car insurance policy is perhaps one of the most confused policy and the most debated one while opting for one, particularly while buying a new car.

The new car insurance policy as we might understand by the wordings is a bit customized version of the comprehensive auto insurance thus helping the new car buyers. It includes almost all the benefits of the comprehensive auto insurance policy and along with it, it also provides additional benefit for new car buyers and of course at the cost of a few reasonable dollars.

Buying the new car insurance policy would mean that any cost incursion due to accidents and other damages which are supported by the policy and the losses exceeding a certain limit would mean that the policy provider would have to pay the entire sum of the new car of buy him a new car. The two variables here are the damage cost % above which the provider provides the new car and the age of the car until which this policy can be bought and covered upon. Generally the damage cost % is 50% i.e if the dame incurred is more than 50% of the total cost of the new car, then the provider gives you a brand new car and the time period until which you can buy the insurance of claim it is 1 year in most of the cases. The need of a gap insurance is not present in case of a new car insurance this perhaps would be a necessity for some buyers of new cars through installments.

Other than these two differences all others are the same and probably minor variations among themselves to attract more customers.