Drivers are required to have car insurance in almost every state and the minimum auto liability coverage limit set by each state’s law can vary. A limit is known as the maximum amount your insurance company will pay with regards to the covered claim. Although the law states that you buy the minimum required coverage, that doesn’t mean you can’t opt to increase your coverage limits beyond what the state requires. One of the coverages that can help you cover costs of expensive claims is the comprehensive insurance coverage. What is auto insurance comprehensive coverage? Basically, this comprehensive insurance covers events that are out of your control. It covers damages to your car caused by natural disasters such as storms or earthquakes, theft, riots, vandalism, or any other causes except collision.
What is Auto Insurance Comprehensive Coverage? – What Does Comprehensive Insurance Cover on a Car?
What is auto insurance comprehensive coverage? You might have asked this question before since the state law does not really require it. But, if you are leasing your car or if it is still being financed by a bank or a credit union, then the lender might require you to get a comprehensive policy until the end of your lease or until your car is fully paid.
So what is auto insurance comprehensive coverage? An auto insurance comprehensive coverage, also known as a comprehensive insurance, is an auto insurance policy that covers certain damages to your car which are not caused by a collision. It is a supplementary coverage which means that it is optional and can be added to an auto insurance policy.
Although you are not really required to purchase this comprehensive insurance, it is better that you add this coverage to your liability car insurance policy, especially if the car you own has a high value. This is because auto insurance comprehensive coverage covers damages to your car caused by natural disasters such as tornado or hailstorms, theft, vandalism, or just plain bad luck which can really happen anytime. The auto insurance comprehensive coverage basically protects your car while it is parked as well as fills in certain gaps in the usual collision insurance policy like when you hit an animal while you are driving.
What is auto insurance comprehensive coverage? It covers damages caused by:
- Vandalism – like when your car has been ruined because a vandal spray-painted on it or if someone tags or keys your car.
- Theft – like damages caused when thieves try to break into the car.
- Fire and explosion
- Riots or civil disobedience
- Falling objects – like tree limbs falling on your car, or when someone is pulling some materials and an object landed on your car while it is parked causing damage.
- Rocks or any objects kicked up by cars or falling off vehicles.
- Natural disasters – such as storms, lightning, wind, hail, floods, tornadoes, hurricanes, and earthquakes.
- Damages caused by animals – such as when you damage your car because you hit a deer that has suddenly leaped into the road.
- Comprehensive insurance also covers windshield and glass damage, but only if the crack or chip is smaller than a dollar bill.
What is Auto Insurance Comprehensive Coverage? – What is Not Covered by Comprehensive Auto Insurance?
What is auto insurance comprehensive coverage? Basically, auto insurance comprehensive coverage is a car insurance policy that covers damages that are caused by something that the car owners don’t have control over. But, this comprehensive insurance coverage does not cover everything. Some of the events it does not cover includes:
- Medical expenses in the event of an accident. It will only cover the damages on your car and not for your injuries or the injuries you have caused to others. Your injuries may be covered by your health insurance if the accident is your fault, or by the other driver’s insurance if they are at fault.
- Damages to your car caused by a collision or hitting another car.
- Damages to your car caused by collision with a tree, road hazard, or guardrail.
- Any legal fees if you are being sued.
- Income that you or your passengers have lost due to missing your work after an accident.
- Car damages due to your car being flipped.
- Damages you may have caused to another person’s car from a collision or accident.
- Property or personal items that may have been stolen from your car.
- General wear and tear. Your comprehensive insurance policy won’t cover claims relating to your car’s general wear and tear such as rust, worn brake pads or discs, or worn tires.
- Negligence such as leaving your car unlocked that has resulted in theft or valuables in your car getting stolen.
Keep in mind that the auto insurance comprehensive coverage will only pay out up to the overall value of your car and minus the deductible. If you own an older car that is deemed less valuable, you may not benefit much from the said coverage.
What is Auto Insurance Comprehensive Coverage? – Is Comprehensive Car Insurance the Best?
What is auto insurance comprehensive coverage and it is the best insurance for me? Like mentioned earlier, comprehensive insurance is not really required by the state law, but if your car is leased or is financed by the bank or lender, they may require you to get a comprehensive policy until the car is paid off or until the lease ends.
Although you are not required to purchase auto insurance comprehensive coverage, adding it to your liability insurance policy might be a good idea. You will know if adding comprehensive car insurance will be good for you by considering some factors which include:
- The total value of your car.
When you own a car that has a high value, it is best that you purchase comprehensive insurance to protect your car. You can start by calculating the total worth of your car and subtract it with your deductible amount since it will be the most value you will most likely get from your policy should the worst happen. You can then compare the number with the cost of all your payments. If you own an older car with less value, it might not be worth it to get this policy.
- Where you live.
Where you are located can also be one of the deciding factors. You need to determine whether your location is prone to weather-related disasters such as storms, tornadoes, or earthquakes. Or whether there is a high rate of civil disobedience or car theft in your area.
If you live in a rural area where you are most likely to encounter crossing animals, then comprehensive insurance will be beneficiary since it covers animal-related damages. Or maybe you live in an area that is prone to storms or hails or a town with higher crime rates and theft usually happens.
- Your budget.
You need to ask if you can afford to pay it or if you are willing to pay for it. Keep in mind that with auto insurance comprehensive coverage, you pick if you have deductible and in what amount. The amount that you will need to pay before receiving the policy’s benefits is called a deductible. A deductible is basically the amount you consent to pay up front when you make an insurance claim. After that, your insurance company will then pay the rest up to the limit of your coverage.
Keep in mind that the higher your deductibles are, the lower your premium will be. However, it increases the amount you should pay out up front that you need to get from your own pocket if a loss should occur. So you need to determine your budget and how much you are willing or comfortable to pay.
You need to make sure that you will shop around, inquire, and compare auto insurance providers so you can choose one that is perfect for you and your budget. This is done since rates can vary and are usually based on your unique driver profile.
What is Auto Insurance Comprehensive Coverage? – What is the Difference Between Comprehensive and Collision Coverage?
What is auto insurance comprehensive coverage and how is it different from collision coverage? Many people might have asked this question before since comprehensive insurance is usually confused with collision. Although both auto insurance comprehensive coverage and collision coverage insure your car, they cover different events.
There are three components of an auto insurance policy – liability insurance, comprehensive insurance, and collision insurance. Most states have a law that only requires drivers to carry liability insurance, with comprehensive and collision insurance as additional coverage. Comprehensive and collision insurance are only optional if one owns a car outright. However, like mentioned earlier, if the car is being financed or leased, the lender might require comprehensive insurance.
So what is auto insurance comprehensive coverage and what is collision coverage? While comprehensive insurance covers minor and major damages caused by events or things that are beyond your control, the collision insurance covers for the damages on your car that are caused by a collision with another vehicle or other object such as a tree, road hazards, fence, or a guardrail when you are at fault.
Collision insurance will cover driving accidents that include:
- Accidents that involve cars and other motor vehicles such as RVs, motorcycles, and many more.
- When you hit other objects such as a tree, phone pole, pothole, fence, garage, house, street sign, and many others.
- An accident involving a single car like when your car has overturned, rolled, or fell over.
- Damages on your car due to a hit and run accident.
- Some insurers cover injuries to pets that are riding on your car for up to $1,000. This comes standard with progressive’s collision coverage on some insurers. Remember that other insurers will not cover pet injuries.
What is Auto Insurance Comprehensive Coverage? – How Much is Comprehensive Coverage?
You now have an idea what auto insurance comprehensive coverage is, but how much is comprehensive coverage? Comprehensive insurance has an average cost of about $134 per year, but it can cost as much as $192 per year depending on which state you live in. The comprehensive and collision insurance each have deductibles unlike the liability insurance that has no deductible.
This means that you can choose different deductibles depending on what you think is the risk level in each of these areas. Like if you think that you won’t likely file a comprehensive claim. You may opt to have a quite high $1,000 deductible so you can lower the premiums. Remember that the higher the value your car has, the more costly the comprehensive insurance policy will be.
If you are not yet sure whether you want to add auto insurance comprehensive coverage to your existing insurance policy, here are some advantages and disadvantages of comprehensive insurance.
The auto insurance comprehensive coverage advantages include:
- It protects your car against any weather-related damages, natural disasters, theft, and anything that can occur beyond your control.
- This coverage will cover events that are unpredictable or unforeseen such as broken windshields because of hail or rocks kicked by passing vehicles and break ins.
- If you just purchased a new car and you reside in an area where the crime rate is high, then comprehensive insurance can give you peace of mind since it will cover damages caused by thefts, civil disobedience, riots, or vandalism.
However, it does have some drawbacks which include:
- It does not cover any damages caused by a collision or accidents that involve other cars.
- It does not cover anything you own that is stolen from your car.
- It might not be worth it if you own an older car with high mileage.
- If your car gets some damage due to potholes, comprehensive insurance does not cover it.
What is auto insurance comprehensive coverage? It is an insurance policy that can protect your car from any unforeseen events that you cannot control. It ensures that you will be able to afford to fix your car should you experience natural disasters, theft, or other damages that are not caused by a collision.