Comprehensive Insurance

 

What is the definition of comprehensive insurance?

Comprehensive insurance (also known as “other than collision” in certain areas) protects your vehicle from damage caused by circumstances beyond your control. It covers things like theft, vandalism, glass and windshield damage, fire, animal accidents, weather/natural disasters, and so on. Comprehensive coverage is an optional coverage.

 

What is covered under comprehensive insurance?

  • Theft

  • Vandalism, fires, rioting, and explosions are all possible.

  • Windshield and window damage

  • Trees and limbs that have fallen, as well as other things

  • Rocks and other debris thrown up by or falling from automobiles

  • Storms, hail, wind, floods, lightning, and earthquakes are all examples of natural disasters.

  • Accidents involving animals (hitting a deer). For example, if you swerve to avoid hitting a deer and instead collide with another car or a tree, your accident would be covered by collision rather than comprehensive insurance. 

 

What is an example of a comprehensive insurance claim?

  • A tree limb lands on your vehicle. Assume a tree limb smashes through the top of your automobile, causing $7,000 in damage.

  • You make a claim with your insurance company. A claim is a request to your insurance for compensation for your losses. Depending on your insurance, you may be able to submit online, using a mobile app, or by phone.

  • Your vehicle is fixed. If you have a $1,000 deductible. You would pay $1,000, and your insurer would cover the remaining $6,000.

 

Collision vs. comprehensive insurance

Comprehensive insurance is sometimes confused with collision insurance. Both insure your automobile, but they cover different events. Collision insurance protects automobile accidents, whereas comprehensive insurance covers occurrences beyond your control. Consider the following: Collision is when something collides with something else (other than animals). Comprehensive refers to all other occurrences. Accidents involving animals are covered under comprehensive coverage (rather than collision coverage) since they are considered out of your control.

 

Should I purchase comprehensive coverage? 

If you lease or loan your vehicle, your lender may require you to include comprehensive coverage. About three out of four drivers select comprehensive insurance for the protection at an affordable cost. Comprehensive insurance often costs around $25/month. 

Consider the following questions:

  • Do you want to pay less for insurance or have repair coverage?  Not electing comprehensive coverage may save you around $25/month. But, keep in mind that if an unanticipated incident damages your automobile, you will be required to pay for any repairs out of pocket. 
     

  • Are you able to afford a new car? If it hails heavily, your automobile might be heavily dented and have broken windows. If you don't have comprehensive coverage, this can be an expensive repair. If you have the coverage get it and you'll just have to pay your deductible.

 

Drivers with more costly automobiles typically purchase comprehensive insurance because few can afford to pay that much out of pocket.

 

How likely is it that you will have a claim?

Dropping comprehensive is kind of like playing a game against nature. You're assuming that unforeseeable occurrences outside your control will not cause harm to your vehicle.

According to research, 5-10% of drivers with comprehensive coverage file a comprehensive claim in a given year, with the typical repair costing around $1,500. That is the amount you may have to spend out of pocket if you do not have comprehensive coverage. Keep in mind that repair prices might vary greatly depending on the extent of your damage and the value of your vehicle. Repairing a more costly automobile is always more expensive.