The first thing that anybody must realize is that auto insurance is very much necessary no matter what sort of car you own. It’s not only a necessity; it’s the law in most states around the country if not all.
What is comprehensive auto insurance?
First party or fully comprehensive insurance is the sort of insurance that would provide you coverage no matter who is at fault in an accident. It does not require you to show fault in case of an accident. You need not have to take a case to court in order to get your money. It would also provide you coverage against losses due to fire and/or theft. You would also be covered against instances like banging your car into a lamp post or a tree.
It is different from third party insurance in that you do not have to show who was at fault when you claim your money. Third party or limited insurance is when you are covered for just those accidents where it’s proven that you are at fault. Even if your damage is extensive and the other party involved is not able to pay for it, you cannot claim money from your insurance company as long as you were not at fault in the accident.
Is it justified to get first party or comprehensive insurance for your car which you use sparingly?
It all depends on what sort of value you associate with your car. If your car is pretty expensive and has a lot of emotional value attached to it, it is a better idea to go for comprehensive insurance.
It also depends on where you are going to park your car, because first party insurance also protects you against theft and fire losses. If you are going to be parking your car inside the garage for the whole night, it really does not make sense to have theft protection. You have already spent a lot on the garage and there is no point in getting insured for theft when there is not much probability of it happening. And also keep in mind where you are going to park your car when you go out. Do you travel to unsafe locations in the city very often?
And lastly, it also depends on just how much you can afford to pay. If you can make do without the little that you spend as premium that it is worth the money for getting a good sleep at night.