The term comprehensive auto insurance is very misleading. Many times, you will hear that you should have comprehensive coverage – but what does that mean? It can mean two things. It can mean that you should have an ample amount of coverage to reduce your risks of having to pay out-of-pocket for most types of incidents. Or, it can refer to the specific type of auto insurance known as comprehensive car insurance. Confused? Here is what it means.
Comprehensive Auto Insurance Is a Type of Insurance
There are various types of auto insurance that can come within a single. Many drivers want all of them. Other drivers may need to pick and choose coverage based on their specific risk factors. Some types of insurance include collision insurance, liability insurance, medical payments coverage and comprehensive insurance.
In this way, comprehensive coverage is a specific policy you can buy. You may need to buy it to protect the value of your car from unexpected and unavoidable loss.
What Does Comprehensive Auto Insurance Cover?
This form of car insurance provides a wide range of protections for you. Generally, it applies to situations where you do not cause damage to the car, but it occurs.
Here are some examples of what your policy may cover:
- Falling objects
- Glass damage
- Car theft
- Storm damage
Still, this type of car insurance does not cover all risks.
For example, it does not include any instance in which your vehicle collides with another vehicle or object. It does not cover the legal or medical expenses related to an accident. It doesn’t provides coverage for damage you do to another person’s vehicle. Your collision, medical payments and auto liability insurance coverage, respectively, might pay for such losses.
When Do You Need Comprehensive Auto Insurance?
Generally, you need to carry comprehensive auto insurance whenever there is the likelihood that significant damage to your car will cause financial hardship.
For example, if you have a leased car or one that has a loan, you need to carry proper auto insurance like this. It is often a requirement within your contract with your lender. That’s because coverage will help you pay for repairs to the vehicle, therefore protecting its value for both you and your lender.
Speak to your agent about your need for comprehensive car insurance. Know that it is one of the foundations of protecting your car.
FAQ’s About Comprehensive Insurance—Critical Protection for Your Car’s Value
What does comprehensive car insurance cover?
Comprehensive car insurance typically covers damage to your vehicle from theft, vandalism, natural disasters, and other non-collision related incidents.
Is comprehensive insurance required by law?
Comprehensive insurance is not required by law, but it may be a valuable addition to your policy for added protection.
How does comprehensive insurance differ from collision insurance?
Comprehensive insurance covers non-collision related damage, while collision insurance covers damage from collisions with other vehicles or objects.
Does comprehensive insurance cover windshield damage?
Yes, comprehensive insurance often covers windshield damage caused by rocks, debris, or other non-collision incidents.
Can comprehensive insurance cover damage from flooding?
Yes, comprehensive insurance typically covers damage from flooding and other natural disasters.
What is the deductible for comprehensive insurance?
The deductible for comprehensive insurance can vary, but it is the amount you pay out of pocket before your coverage kicks in.
Does comprehensive insurance cover stolen personal belongings from my car?
Yes, comprehensive insurance may cover stolen personal belongings that were inside your car at the time of the theft.
Can I add comprehensive insurance to my existing policy?
Yes, you can usually add comprehensive insurance to your existing car insurance policy for added protection.
Are there any exclusions to comprehensive insurance coverage?
Some common exclusions to comprehensive insurance coverage may include wear and tear, mechanical breakdown, and intentional damage.
How can I lower the cost of comprehensive insurance?
You may be able to lower the cost of comprehensive insurance by choosing a higher deductible or by bundling it with other insurance policies for a multi-policy discount.
Do I need comprehensive insurance on a financed car?
If you have a financed car, you may be required to have comprehensive insurance by your lender. This is because the lender wants to protect their investment in your car. Comprehensive insurance covers damage to your car from theft, vandalism, fire, and other non-collision-related incidents. If you don’t have comprehensive insurance and your car is damaged or stolen, you may still owe money on your car loan even if you no longer have the car.
Is comprehensive insurance worth it for an old car?
Whether comprehensive insurance is worth it for an old car depends on the value of the car and your personal financial situation. If your car is worth a lot of money, comprehensive insurance may be worth the extra cost to protect your investment. However, if your car is not worth much, it may not be worth paying for comprehensive insurance. You should also consider your financial situation and whether you could afford to replace your car if it was stolen or damaged.
What is the difference between full coverage and comprehensive and collision?
Full coverage is a term used to describe a car insurance policy that includes liability, collision, and comprehensive coverage. Liability coverage is required by law and covers damage you cause to other people and their property. Collision coverage covers damage to your car from a collision with another car or object. Comprehensive coverage covers damage to your car from non-collision-related incidents like theft, vandalism, and weather events. So, while comprehensive and collision are types of coverage included in a full coverage policy, full coverage also includes liability coverage.