The comprehensive insurance is an essential type of coverage that enables you to pay for damages to your vehicle which is not a result of a collision from other cars or objects. People typically purchase comprehensive insurance in addition to liability insurance, which is required by law in most states as well as collision insurance, which involves accidents with another car.
Accidents with another vehicle or crashing into an object are not the only mishaps a car owner may experience. Many causal factors could damage your car, and the comprehensive insurance can provide you with an extra level of coverage to prepare for these unexpected and unfortunate happenings.
BENEFITS OF COMPREHENSIVE INSURANCE
A comprehensive car insurance policy may cover damages that are caused by:
- Weather disturbances / natural disasters that are outside human control such as hail, flood, storm, hurricane, windstorms, and earthquake
- Civil disturbances such as violent demonstrations, riots, and strikes
- Criminal activities such as vandalism, theft (or attempted theft)
- Hazards such as fire, explosions, falling objects such as tree branches and debris and accidental glass breakage such as stones thrown up by another car
- Hitting or being hit by an animal
In all those types of situations listed above, comprehensive coverage may help pay for pricey repairs, up to your coverage limit. You can be compensated for your loss when your damaged car is beyond repair.
Select the Deductible Amount
When buying a comprehensive coverage, you have to discuss with your insurance agent about deductible options which is the amount of money you pay before they cover for the rest of auto repair. To lower your car insurance rate, you can choose to have a high deductible amount such as $1000. If you decide to have a lower deductible amount, it might increase your insurance rate.
The coverage limit, just like in the collision insurance, is typically the actual cash value of the car and not the amount you paid for your car when you bought it. There is always a set amount of depreciation to be deducted from your car’s replacement value.
Is Comprehensive Insurance For You?
It is optional when you own the car outright, but it’s usually required if your vehicle is on a lease, and if you are still financing it. Until the car is fully paid, your lender may require you to carry both collision and comprehensive coverage.
If you have paid off your car, how will you know if getting optional comprehensive insurance is for you? Ask yourself this question: would you be able to pay from your pocket the repair or replacement expenses if your car is stolen or damaged in an accident? If the answer is no, then having collision and comprehensive coverage can be a smart investment for your maximum protection. In some instances, liability, collision and comprehensive insurance are combined to form a ‘full coverage.’
Do you have questions? Call your insurance provider and learn more about comprehensive coverage. Get a free quote today!