Comprehensive Car Insurance - What it is and what it covers?
Do you know how you would cover the damage other than a collision or accident with another vehicle/property? In that case, comprehensive insurance comes as an aid for you. It is a coverage that helps you to manage the replacement or repairs of your car if it has been stolen or damaged in an accident, not a collision. Sometimes, comprehensive coverage is also called ‘other than collision’ coverage.
Comprehensive car insurance covers damage from fire, theft, vandalism, or even natural disasters. If you are renting your car, keep in mind that the lender of your car needs comprehensive coverage to protect your car against damage other than collision.
In case if you are looking for buying car insurance or want to revise your existing car insurance policy, you can consider comprehensive coverage. If you own your car fully, you have the choice of whether you want this coverage or not. Now, let’s learn about this type of car insurance.
What covers under Comprehensive Car Insurance?
Comprehensive coverage works great in protecting you from the situations where your car is damaged as a result of an accident other than collision. Some of the common non-collision situations that damage your car and comprehensive coverage gives protection to your car include:
● Theft
● Vandalism
● Natural Disaster
● Fire
● Falling Objects
● Damage to your car done by animals
● Public trouble like riots
Now, you must also know what comprehensive coverage does not cover.
● Damage to a car as a result of the collision
● Damage to someone else car as a result of the collision
● The medical expenses of yours or your passengers after an accident
Choose a Comprehensive Coverage Deductible
When you buy comprehensive car insurance, the very first thing that you need to do is to choose your deductible. It will help in determining how much you will be paid for a claim. For example, if you have chosen a deductible of $500 and your car is damaged due to vandalism, you will get the complete amount i.e. $500 for the repairs. Your insurer will cover everything on the comprehensive coverage deductible.
Moreover, if you choose a higher deductible, you will have lower premiums, thus you can save money upfront. In this case, you may end up paying more money out of your pocket towards a claim. On the other side, if you choose a lower deductible, you will have to pay a higher amount for coverage. You can take the help of your agent to define what comprehensive coverage deductible and limits best suit your needs and budget.
Reasons for buying Comprehensive Coverage
Let’s start with an easy example. Suppose your car has been damaged completely as a result of natural disasters, like a flood, hurricane, etc. so, do you think that you are able to pay for a new car? Of Couse, your answer will be no. In such a situation, if you have paid your comprehensive coverage deductible, your car insurance will cover the rest amount of your new vehicle.
Here are a few considerations that will help you to understand the reasons for buying comprehensive coverage.
● As we have already covered this point earlier, if you are financing or leasing your car, comprehensive coverage may be required by the lender of your car until your car is paid off completely.
● You must also consider the value of your car when buying comprehensive car insurance. If you are driving an expensive car, there are probabilities that you are unable to pay all the repair expenses in case there is extensive damage to your car. If you have an old car, it may not be a good idea to get this coverage as it will not cost much to get another car. So, always make a smart investment.
● Simply, multiply the amount of yearly comprehensive and collision coverage by 10 and check if your car is worth less than that amount. If yes, then buying this coverage may be an expensive option for you.
Overall, buying comprehensive auto insurance mainly depends on the value of your car, your location as well as your financial condition.









