What is comprehensive insurance

Have you ever worried whether or not you have sufficient auto insurance to cover damage, ranging from scratches that happen when your car is parked to a full vehicle replacement? This feeling is very common, yet most people never take the time to look into this issue. However, getting the correct insurance for your car that covers such damage is not a hard task if you understand what you need to look for.

Comparing auto insurance quotes is always the first step, but you can’t stop there. We have examined the important points of comprehensive insurance, including when and why you may need it, and outlined them below.

Why is comprehensive insurance needed?

When it comes to car accidents there are several different types and most drivers quickly discover that one insurance policy does not cover them all. This is why many prefer to buy comprehensive insurance, in addition to liability insurance which provides protection against claims which arise after accidents caused by you result in people or property being damaged. Importantly comprehensive insurance, and collision insurance which covers cases when vehicles collide, are often optional when a vehicle is old or fully paid off by the owner.

What is comprehensive insurance

In most countries’ liability insurance is a compulsory requirement once an automobile is purchased. However, when a vehicle is new, and the owner has to pay off a significant sum of money on the loan they are required to purchase comprehensive insurance which will be included in the full coverage.

What does comprehensive insurance cover?

Under comprehensive insurance a variety of scenarios are covered including theft of a vehicle and damage resulting from vandalism. Also covered under this insurance is damage resulting from riots, fire, and explosions. Damage to the glass of the windshield and dents caused by falling tree limbs and rocks kicked up from roads are also covered under this insurance. In areas where there is unpredictable weather such as hail, storms, lightning, and high wind comprehensive insurance is useful and it also covers damage caused by natural disasters such as tornados, floods, and earthquakes. Additionally, if you hit an animal and it results in damage, it is covered under the comprehensive insurance terms.

What is not covered under comprehensive insurance?

There are several instances such as mechanical or electrical problems which comprehensive insurance does not cover. When the driver does not have a driver’s license that is valid the insurance will not cover any damages resulting from accidents. Collisions with another car are importantly excluded from this insurance cover.

The deductible component of comprehensive insurance

Included in comprehensive insurance is a deductible which is chosen by the person who has bought the car. The deductible can often range from $100- $300. When the car is costly a higher deductible is chosen by the owner. In cases when your car is damaged the owner has to pay the deductible amount while the insurer will pay the rest of the money. For example, if a car is valued at $12,000 and is swept away ina flood, the insurer will pay the entire value of the car after subtracting the deductible.

Even an old car is often put under a comprehensive insurance plan when the chance of it being stolen is high. A comprehensive insurance plan is also entirely different from collision insurance and should not be confused which often happens. Importantly when you have a comprehensive insurance plan you get the highest amount of cover, and it is especially handy when you have not paid off your car in full.

This is a Contributed Article.