What Is Comprehensive Car Insurance Policy and What Does It Cover?
Comprehensive insurance covers damages to your car from non-collision events out of your control. This includes damages caused by vandalism, theft, fire, run-ins with animals, and adverse weather events such as tornadoes.
This type of insurance is also known as ‘own damage’ insurance or ‘other than collision’ coverage. It is helpful to motorists as it covers unforeseen incidents that may adversely affect your vehicle.
What Does Comprehensive Insurance Cover?
Comprehensive insurance coverage protects your vehicle against numerous unexpected damages. Such damages may be caused by:
- Windshield or glass damage
- Rocks and other objects kicked up by cars.
- Falling objects
- Weather events such as floods, lightning, wind, hail, and earthquakes
- Hitting animals
- Riots and vandalism
Comprehensive insurance does not cover the following:
- Medical expenses
- Legal fees
- Damages caused by a collision.
- Lost wages
- Property was stolen from the vehicle.
- Mechanical or electrical breakdown
- Damage caused by DUI.
- Damage to a third party’s car in a crash
Understanding Comprehensive Insurance
Comprehensive Insurance offers your vehicle superior protection. Although this type of cover is optional in most states, you might require comprehensive insurance if your car is financed.
It may also make sense to purchase comprehensive insurance if you have a brand-new car or a one-of-a-kind collector’s vehicle.
Why Do You Need Comprehensive Insurance?
Many motorists across the country can benefit from comprehensive insurance. For instance, if you live in an area with high rates of theft or vandalism, comprehensive insurance can help put your mind at ease.
Comprehensive coverage also protects you financially from unforeseen events and disasters. If a branch falls from a tree onto your windshield, you do not have to pay out of pocket for repairs.
As discussed earlier, you also need comprehensive coverage if your car is leased or financed. Most financiers want to protect their investment from unexpected events and require you to have comprehensive coverage.
Comprehensive vs. Collision Insurance
While both policies cover your car, collision insurance covers your vehicle in case of a crash, while comprehensive coverage protects your car from damages caused by unforeseen events other than car accidents.
Collision insurance may protect you in case of a single-car rollover, crashing against an object, or a collision with another vehicle. However, this type of insurance will not cover you in case of break-ins.
If your car is financed, you must have collision insurance to cover repairs in case of an accident. Collision insurance can also cover damages caused by potholes.
However, neither insurance covers medical bills nor damages to a third-party vehicle.
Cost of Comprehensive Insurance
The Insurance Information Institute estimates that the average cost of comprehensive insurance is $134 annually.
Depending on your state, the cost can go as high as $200. When you purchase a comprehensive insurance policy, you also choose a deductible based on perceived risk.
If you think you are likely to file a claim but prefer not to forego coverage altogether, you can choose a higher deductible to lower your premiums. However, in case of an incident, you will have to pay more out of pocket.
It is also worth noting that the cost of your policy is based on your car’s actual cash value. The higher it is, the more expensive your policy.
Insurance companies determine how much you pay for insurance based on risk class based on factors such as:
- Where you live
- Driving Record
- Coverage amounts.
Higher risk factors translate to higher premiums.
Is Comprehensive Insurance Worth It?
You might be wondering whether getting comprehensive insurance is worth it, especially if it is not required by your leasing or financing company.
Ultimately, it comes down to the value of your car, financial circumstances, and personal preferences.
If your car has a low cash value, it may not be necessary to carry comprehensive insurance.
However, if your car has a significantly higher cash value, you may need comprehensive coverage to reduce the cost of repair and replacement on your part.
Some drivers prefer the peace of mind against unforeseen events and purchase comprehensive insurance.
How Does Comprehensive Insurance Work?
Like other policies, comprehensive insurance only pays for part of the damages your car may suffer in case of unexpected events. You still have to cover part of the expenses by paying a deductible.
In case of an unexpected event, the insurance settlement can be used to cover repair or replacement costs. You may have to pay more in premiums if you have a lower deductible.
Will Comprehensive Insurance Cover Damages from Potholes?
Comprehensive insurance does not cover damages caused to your vehicle by potholes. However, collision insurance offers coverage against potholes since it covers damages caused by hitting an object.
Is Comprehensive Coverage Similar to Full Coverage?
Comprehensive insurance covers damages from non-collision accidents and is sometimes called ‘other than collision’ coverage.
On the other hand, full coverage is ambiguous, and insurance companies often use it to refer to collision and comprehensive insurance as well as any other state-mandated coverage.
For instance, in most states, liability coverage is a requirement, while comprehensive insurance is optional. In this case, insurance companies can refer to liability and comprehensive insurance as full coverage.
Your auto insurance protects your car, loved ones, and finances. If you have paid for your car in full or have an older vehicle, the cost of comprehensive insurance can feel like an unnecessary burden.
However, comprehensive insurance gives you peace of mind by protecting you against unexpected events. Even if you are a watchful driver, some events are unavoidable. For instance, damage caused by natural disasters, weather conditions, or even animals on the road.
Comprehensive insurance protects your car and prevents you from handling expensive repair bills if your car is damaged.
In case of an incident, foregoing comprehensive insurance could make the difference between having your insurance company cover the cost of a new vehicle or suffering the loss of buying it out of pocket.
We recommend weighing the costs of repairs and replacement against the cost of premiums to maintain your comprehensive coverage.
Get in touch with your insurance provider to find out the cost of monthly premiums for comprehensive insurance. Read more:- https://worldundrone.com/.