Comprehensive vs Mandatory Car Insurance in Jordan
Apr 5, 2022 by Amwalcom
If you are about to renew your car's license or buy a new car and want to get introduced to the difference between comprehensive and obligatory car insurance and which to choose, you need to read this article.
As mentioned above the two main types of car insurance in Jordan are mandatory and comprehensive car insurance. So what's the difference?
Mandatory car insurance (Third Party Insurance)
As its name suggests, this type of car insurance is obligatory for everyone who buys a new car in Jordan or is in the process of renewing the licensing and registration of the car. No one is allowed to drive in Jordan without a valid insurance policy.
To understand what rights and liabilities are involved in mandatory insurance let's imagine that you purchased mandatory car insurance and you were a party in an accident that had personal injuries and physical damages to other vehicles. Here there are two possibilities:
1- you were not the party responsible for the accident; here you are not liable for any repairs or compensation to other parties. your car will be repaired through the other vehicle insurance company
2- the second possibility is that you are the party responsible for the accident. here you are obliged by law to pay for any material or bodily injuries to the other party and these compensations will be paid through your insurance policy.
this type of insurance is purposely tailored to protect the rights of other drivers for accidents you were the culprit; hence its name insurance "against others"
The obligatory insurance is forced by law and is purchased when a car is being registered and is enforced by the Civil Liability Compulsory Motor Insurance Regulation
The body responsible for overseeing this obligatory insurance is the Jordan Insurance Federation and the issuance of these policies is done through its offices located in the licensing departments and offices across Jordan.
It is important to keep in mind that this type of insurance does not entitle you to obtain any extra coverages as you might do with comprehensive insurance and its price is preset by the third-party insurance compulsory regulations. Also, you do not have a say in which insurance company you will get as it will be assigned to you at the time of purchase
Comprehensive car insurance
Comprehensive insurance is an optional insurance plan offered by insurance companies and combines mandatory insurance in addition to extra features and coverages for extra fees
below are the major characteristics of comprehensive insurance:
1- Comprehensive insurance will pay for damages to the body of your car in case you were the party responsible for the accident
2- unlike mandatory insurance, you have the freedom to choose which insurance company you want to insure with
3- Prices are higher than mandatory insurance and are not preset between insurance companies. each company can determine the features and amount to pay and basically, prices are set by the market value
Comprehensive car insurance prices and packages are determined by the insurance company. The price of the insurance policy relies on various factors such as car age, car market value, car type, fuel type, and extra coverages you wish to add to the policy.
4- extra coverages are available through comprehensive insurance. some of which are free while others are for extra fees. some examples of these coverages include roadside assistance, agency repair, natural disasters coverage, and airbags replacement
In conclusion, if you own a car in Jordan you must have mandatory car insurance as a minimum requirement. this insurance is not expensive but does not cover your car repair costs in case you were the responsible party in an accident. Comprehensive insurance is a more expensive alternative and is basically a choice you will need to make based on need and affordability