December 11, 2018

What is Comprehensive Car Insurance Coverage?

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In summary, comprehensive coverage indemnifies the policyholder (minus the deductible) for vehicle damages caused by specified perils, excluding collisions; sometimes referred to as “Other than Collision”. When filing a comprehensive claim, there is often a deductible that must be paid on a “per incident” basis.

As usually required for financed or leased vehicles, comprehensive may come in a package with “collision coverage” (together abbreviated as “comp and collision”). It is also often referred to as “full coverage” when liability is added.

The following perils may be covered by comprehensive coverage:

  • Fire
  • Theft
  • Vandalism
  • Storms ( sandstorms, windstorms)
  • Earthquakes
  • Falling and flying objects
  • Broken windows and windshields
  • Hail
  • Collision with animal

Consumers should understand that there are exclusions to this type of protection such as items that are not permanently installed in vehicles.

Comprehensive does not always cover:

Aftermarket Electronics speakers, radios, stereos, tape decks, and compact disc players cassettes, CDs, and DVDs * CB radios, telephones, televisions, DVD players, VCRs and computers radar detectors Customizations murals decals graphics tires body kits

The above mentioned are just a few items that may be excluded. If an individual has any questions concerning property kept in their vehicle they should contact their provider to help clarify these issues.

What are deductibles? – A specified amount that policyholders would have to pay in the event of a claim caused by one of the perils described above. The insurance company would then pay the balance, up to the specified limits, of the cost of repairs or replacement.

Recommended comprehensive auto insurance deductibles:

There is no correct or incorrect option; rather, the recommended choice is one that best fits your particular needs. To help determine which choice would be more suitable, keep the following in mind:

  • The lower the deductible:
    • The least you will pay in case of a claim;
    • The higher the premium will usually be.
  • The higher the deductible:
    • The more you will have to pay in case of a claim;
    • The lower your premium will usually be.

Here is more help choosing deductibles to help you make a more informed decision.

How Much Does Comprehensive Coverage Cost?

Since comprehensive coverage depends on the vehicle, driver, location and a few other factors, get auto insurance quotes and request comprehensive coverage to see how much it costs for you specifically. The price of premiums may vary significantly within different carriers; therefore consider comparing multiple insurers to find a better deal.

The cost of comprehensive auto insurance can vary due to several factors. The type of vehicle can affect the price substantially. The more expensive the automobile, the more it would would cost to replace in the event that it is becomes declared a total loss by the insurer, stolen or destroyed by fire. Higher end vehicles are more costly to repair; therefore, the more expensive the vehicle, the more it costs to insure. A driver’s history and residence will also affect premiums. Certain areas have higher crime rates thus raising the likelihood of theft or vandalism. By shopping around, this gives consumers a better chance of finding the best prices.