Comprehensive insurance coverage assist in paying for replacement or repairs to your vehicle if it gets stolen or damaged in an incident that isn’t a collision. Comprehensive, also known as “other than collision” coverage, usually covers damages from fire, vandalization or falling objects (such as a tree or hail). If you are financing or leasing your vehicle, your lender probably requires comprehensive coverage. If you own the vehicle, it’s an optional coverage on your policy.
If you are shopping for auto insurance or are going over your current auto policy, you might want to think about comprehensive coverage. Learn what this type of insurance helps safeguard, how it differs from collision coverage and how restrictions and deductibles pertain to the coverage.
What Does Comprehensive Insurance Cover?
Comprehensive assists in covering damages to your vehicle that is not the result of a collision, like:
- A civil disturbance (such as riots that results in damage or destruction of your vehicle Theft
- Damage done to your vehicle by pests)
- Falling objects
- Natural disasters (such as a tornado or a hurricane)
What it Doesn’t Cover
- Damages to your vehicle from an accident
- Damages to another individual’s vehicle from an accident
- Your (or your passengers’) medical costs following an accident
Comprehensive Coverage Deductibles And Restrictions
When you buy comprehensive coverage, you will choose a fixed deductible, which is the amount you pay out-of-pocket towards a covered claim. Say you decide on a $500 deductible, and your vehicle is later damaged by a fallen tree in a covered claim. If it will cost $1,500 to repair the vehicle, you would pay the $500 deductible, and the insurance company will pay the left over $1,000.
Comprehensive coverage has restrictions, or the maximum amount the policy pays towards a covered claim. The limits on comprehensive coverage is usually the actual cash value of the vehicle.
If your vehicle is stolen, for instance, your insurance company would compensate you for your vehicle’s depreciated value, minus the deductible. Simply put, if you want to replace your stolen vehicle with a newer vehicle, you will probably have to pay out-of-pocket to do it, as well as using the compensation from your insurer.
Bear in mind that the comprehensive deductible and limits are separate from the policy’s collision deductible and limits.
Picking A Comprehensive Coverage Deductible
Your insurance company will provide comprehensive deductible amounts in fixed increments, like $500, $1,000 or $1,500. Deciding on a higher comprehensive deductible typically means your premiums will be reduced, in which will save you money upfront. Despite that, you may have to pay more out-of-pocket towards a covered claim. Similarly, deciding on a lower comprehensive deductible will mean the amount you will pay for coverage will go up. Your insurance agent can help you establish what deductible and limit fits you.
What Are the Differences Between Collision And Comprehensive Insurance Coverage?
Collision coverage will help pay to repair your vehicle if it gets damaged in a collision with another vehicle or object, like a light pole. Typically, collision coverage is used when a driver gets into a vehicle accident.
Comprehensive is a different coverage from collision. It will help cover various types of losses that are typically not the outcome of driving the vehicle, like theft, vandalism or fallen trees.
Why Purchase Comprehensive Coverage?
If you’re questioning if you should purchase comprehensive coverage, here are a few things to think about:
- Comprehensive coverage might be required by the vehicle’s lender.
If you are leasing or financing the vehicle, the lender might require you to carry comprehensive and collision coverage before the vehicle is paid-off in full.
- How old is the vehicle and what is it’s value?
If you own the vehicle, comprehensive coverage will be optional. It might wise to find out the Kelley Blue Book value of the vehicle. Are you going to be able to pay that amount for repairs or replacement your vehicle if it gets stolen or damaged? If you aren’t able to pay a little on your own, then purchasing optional coverages, such as comprehensive and collision coverage, might be a wise investment.
- What are the costs for annual premiums for comprehensive coverage and collision coverage?
III recommends taking the price you would pay in 1 year for your comprehensive and collision coverage, and multiply that by 10. Is the vehicle valued at less than the number you come up with? If that is the case comprehensive coverage and collision coverage may not be an economical alternative for you. Simply put, you may want to speak with your insurance agent about if it is sensible to include these coverages on your vehicles insurance policy.
Auto Insurance Quotes
From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.