Comprehensive Car Insurance 101
One aspect of owning and driving a vehicle is purchasing auto insurance. This umbrella term is quite broad as it includes different types of coverage to protect you and your vehicle. Comprehensive coverage is one of the more popular auto insurance coverages. It is also referred to as known as "other than collision" coverage because it pays for non-collision-related damage.
Purchasing comprehensive coverage will safeguard you against financial loss. While comprehensive car insurance is not required by law, you can still benefit from getting one. This blog explores the ins and outs of comprehensive car insurance that you might find helpful.
What Is Comprehensive Insurance?
As mentioned in the introduction, this component typically protects your vehicle against damage caused by non-collision events such as natural disasters, theft, and vandalism. Unlike liability coverage, comprehensive car insurance is optional. However, leased or financed vehicles typically require this coverage to avoid various risks.
Coverage may vary depending on your provider and specific policy, but comprehensive insurance covers damages resulting from:
- Vehicle Theft
- Vandalism
- Earthquakes, Flooding, and Hurricanes
- Flying or Falling Objects
- Hail Damage
- Windstorms
- Fire Damage
- Explosion
- Collision with Animals
- Broken Windshield and Glass Damage
What Comprehensive Insurance Does Not Cover
- Collision-Related Damage
- Normal Wear and Tear
- Medical Expenses
- Personal Injuries
- Legal Fees
- Personal Belongings Stolen From Your Car
- Loss of Income Due to an Accident
Since every accident is unique, always read the fine print or consult your local insurance agency for coverage details. They will guide you on how comprehensive auto insurance can supplement your existing policy. For maximum protection, we recommend pairing comprehensive coverage with liability coverage, collision coverage, or personal injury protection.
Comprehensive vs. Full Coverage Auto Insurance
Some people use these terms interchangeably, but there’s a huge difference between them. Full coverage insurance refers to policies with multiple insurance coverage bundled together. It typically covers both your liability and property damage to your vehicle.
When compared with comprehensive coverage, a full coverage policy is broader and has more scope. It may include liability insurance, collision, MedPay, personal injury protection, and more. Since full coverage provides additional protection, expect that it is more expensive.
Now, the question is: which is better between the two options? When finding the right car insurance policy, consider the minimum required coverage in your state. This will guide you in determining how much you need. An insurance agent can craft a policy with the necessary protection for your vehicle. They can provide you with written quotes from multiple carriers for better comparisons.
Deductibles for Comprehensive Insurance
Comprehensive insurance rates can vary depending on your driving history, car’s model and make, and deductibles. When buying comprehensive coverage, choose a higher deductible to lower your premiums. Your deductible is the out-of-pocket costs that you need to pay before your coverage kicks in.
Let’s say vehicle damage costs $5,500 to repair, and you have comprehensive auto insurance with a $500 deductible. You would be responsible for paying the first $500 out of pocket, then your provider would cover the remaining $5,000.
Deductibles serve as a threshold you need to reach before your insurance provider shoulders the financial risk. This is a common feature not just in auto insurance but also homeowners and health insurance.
In most states, deductibles can range from $100 to $2,000. The right comprehensive deductible amount for you depends on your preferences and financial capabilities.
Policy Limits for Comprehensive Insurance
This refers to the maximum amount your insurance may pay out for losses or damages. Each auto insurance coverage has different policy limits. For comprehensive coverage, your policy limit is the actual cash value of your vehicle. If your car gets stolen, your comprehensive insurance covers your vehicle’s depreciated value, minus your deductible.
Always review your insurance policy and determine the appropriate coverage limits. Inadequate limits could lead to financial ruin and cause a more devastating loss.
Get a Quote for Comprehensive Auto Insurance
From comprehensive coverage to liability insurance, Local Retirement Group
can make insurance easier for you. Our local insurance agents are fully licensed and skilled to help you find the right policy. We offer a wide range of insurance solutions for your auto, homeowners, life, and healthcare needs.
If you would like a personalized quote, feel free to reach out to our staff. Our licensed professionals are always happy to serve you!
