The very first impression that you receive when you hear the word Insurance would be coverage for damages and loss. Now, depending upon the type of cover, insurance policies can vary a lot. For example, there are motor or auto insurance that cover damages to your vehicle in the event of an accident. Another such type of insurance policy is a medical cover, which pays your medical bills.
What if you can combine both of these? Well, the initial thought would be …how?
Simply put, your car insurance company gives you an option for medical cover at the time of purchase.
Let us get into some details that entail your medical coverage through an auto insurance policy.
Comprehensive Motor Insurance
As the name is self suggestive, this insurance policy covers other expenses, usually medical bills, along with the damage caused to your vehicle. Comprehensive motor insurance is typically costlier as compared to ordinary motor insurance. A higher premium payment ensures the coverage for increased damages and losses such as a personal injury during car accidents or worse.
Let us understand how do these two differ, in detail.
- Liability Cover:
A liability cover is typical auto insurance that is liable only to pay the expenses for damage repairs and replacements. For example, if you ever face a road-crash, your liability insurance policy would cover the repairs to your car, regardless of who is at fault.
Apart from your own vehicle, a liability cover may also cover the expenses of the other driver’s loss and damages. This is applicable to the other driver, inversely as well. According to Jeff Preszler from Preszlerlaw-ns.com, by law, Halifax requires all car insurance companies to offer uninsured motorist coverage; this will allow you to sue for damages even if the other driver doesn’t have insurance. This means liability covers can allow paying compensation for personal injuries as well. But, these compensations need to be claimed. Other than that, a liability cover does not necessarily cover your medical bills.
- Medical Cover:
Motor insurance in combination with medical coverage can benefit you specifically, with the injuries caused due to a road accident. When you buy your motor insurance, the insurer offers you various plans and different types of covers that you can benefit from. One of those plans is the medical cover, or as commonly referred to as, a comprehensive insurance policy.
In the event of a road accident, whether you sustain minor injuries, or something worse than that, the insurer is liable to pay your medical covers. In addition, these insurance policies also offer comprehensive life insurance. It can particularly be beneficial in the event of life loss during a motor vehicle accident.
Certainly, a comprehensive insurance policy is far better than a liability cover. But, as already mentioned it also asks you to pay a higher premium. Coming to the premium, it is important to understand how does an insurance company decides the premium you pay and is it really beneficial for you to purchase a comprehensive insurance policy.
Is Paying A Higher Premium Really Beneficial?
Before you decide if it’s really a good idea to buy a comprehensive insurance policy, it is important that you know how much you would be paying.
- Your Age
The very first thing that your insurer considers before deciding your premium is your age. This is crucial when you’re buying motor insurance with medical benefits. The older you are the higher you may have to pay. The simplest explanation is the older you get, the more chances are that your health declines. There are certain health conditions that can influence your ability to drive a car. For example, if you have weaker eyesight, your premium would be higher. And it is needless to say that with growing age, eyesight is more probable to get weaker.
- Condition Of Your Vehicle
Since you are buying motor insurance, deliberately, the premium you pay also depends upon the condition of your vehicle. Simply put, if your vehicle is too old, you may have to pay a higher premium as compared to a new car. The insurance companies take into account the depreciation factor of your vehicle when they calculate your premium. The older your car gets, the more its value depreciates. And, the more likely it is to show signs of breakdown. Which is, another expense that your motor insurance policy is liable to cover.
- Health History
Your personal health history is yet another factor that insurers consider while calculating the premium. If you already are suffering from a disorder that can influence your ability to drive, such as some psychological disorder, or weak eyesight, or seizures, it is very likely that your premium would increase.
The insurer considers a mixture of these factors when calculating your premium. A slight change in any of these factors, strongly affects what you pay to gain the insurance benefits.
The Final Verdict
A liability motor insurance policy only covers the expenses for vehicle repairs. If you ever suffer any injury due to a car accident, you may have to cover the expenses of the treatment, out of your own pocket. Unless you have a medical insurance policy in place. But still, there can be instances where your medical insurance policy may stand void. Having comprehensive coverage can prove to be beneficial in the face of such events. Apart from that, when buying your insurance policy, do not miss out on your budget. After all, you do have the option to buy both of these policies separately.
Whether you buy motor insurance with medical benefits, or a third party insurance policy, you need to be wary of unethical insurance providers. A good way should be to begin your search online and narrow down the prospects on the basis of their authority, the premium you pay, and any other features they can offer you. After all, thorough research before buying insurance can bring no harm to you. Remember, the best policy is the one that meets your needs and also fits in your budget at the same time.