It is not a hard task to determine whether you require comprehensive coverage for your car. However, before you make the decision to buy comprehensive coverage, you need to have a good understanding of how it works. Comprehensive coverage is intended to cover a variety of physical damage claims, such as windshield and body damage, vandalism, and contact with an animal. Here is some information about why you need comprehensive car insurance.
Do You Have a Loan on the Car?
Lenders usually must have full coverage insurance on the cars they have financed to drivers. Comprehensive is usually a portion of such mandatory coverage.
When you sign the contract for a loan, you agree to protect the car against physical damage by buying both collision and comprehensive coverage. You can end up having to deal with expensive penalties if you fail to notify your lender about your insurance coverage. You should ask your auto insurance agent to add your lender as a loss payee for the car. Doing this will ensure your lender is immediately notified of the coverage in case an accident occurs.
What Is Your Level of Risk for Having a Comprehensive Claim?
If you have a high level of risk for having a comprehensive claim, you should get comprehensive auto insurance. Some factors that will put you at high risk of having a comprehensive claim include living in a tornado alley or packing your car under a half-dead tall tree every night. Indeed, any driver can benefit from this coverage. However, for some people it’s worth more than others.
You should take the time to evaluate your risks before deciding whether to get comprehensive car insurance. In general, one would file a comprehensive auto insurance claim for damage to your car caused by the following:
- Falling objects like a tree limb
- Explosions or fire
- Lightning, floods, or hail from tornadoes, thunderstorms or hurricanes
- Vandalism and certain civil disobedience
- Hitting an animal
The higher the risk is for a comprehensive claim, the more you should consider getting the coverage.
What Is the Value of the Vehicle?
If the value of your vehicle is high, this will help you decide whether it is worthwhile to pay for comprehensive auto insurance. If the vehicle isn’t worth much anymore, then coverage might not be worth the investment.
How Much Does Comprehensive Coverage Cost?
You will be happy to know that comprehensive coverage tends to be reasonably priced. As long as you are not considered a high-risk driver, comprehensive coverage is typically worth the price. Even an older car with minimal value is likely worth the replacement of a windshield from damage.
FAQ’s About Why You Need Comprehensive Auto Insurance
What is comprehensive auto insurance?
Comprehensive auto insurance is a type of coverage that helps pay to replace or repair your vehicle if it’s damaged in an incident that’s not a collision. This includes events such as theft, fire, vandalism, or damage caused by natural disasters.
Why do I need comprehensive auto insurance?
You need comprehensive auto insurance to protect yourself financially from losses that aren’t covered by basic liability or collision insurance. It ensures you’re not out of pocket if your car is damaged due to unforeseen events.
Is comprehensive auto insurance required by law?
No, comprehensive auto insurance is not required by law. However, if you’re financing or leasing your vehicle, your lender may require you to have comprehensive coverage as part of your auto insurance policy.
What does comprehensive auto insurance cover?
Comprehensive auto insurance typically covers damages to your car that are not caused by a collision. This includes theft, vandalism, fire, natural disasters, falling objects, and collisions with animals.
How does comprehensive auto insurance differ from collision insurance?
Collision insurance specifically covers damage to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault. Comprehensive insurance covers non-collision related incidents that cause damage to your vehicle.
Can I purchase comprehensive auto insurance without collision coverage?
Yes, you can purchase comprehensive auto insurance without collision coverage, but it’s important to consider the value of your vehicle and your personal needs when deciding on the right coverage for you.
How do I file a claim for comprehensive auto insurance?
To file a comprehensive insurance claim, you should contact your insurance provider as soon as possible, provide them with the details of the incident, and follow their claims process, which may include submitting photos or obtaining a police report.
Will my premiums increase if I file a comprehensive insurance claim?
Filing a comprehensive insurance claim may result in an increase in your premiums, but it depends on your insurer’s policies and your claims history. Some insurers offer accident forgiveness programs that prevent your first claim from affecting your rates.
What factors affect the cost of comprehensive auto insurance?
The cost of comprehensive auto insurance is influenced by factors such as the value of your vehicle, your driving record, where you live, the deductible you choose, and the amount of coverage you want. Insurers also consider the likelihood of theft, vandalism, and environmental damage in your area.
Is comprehensive auto insurance worth it for an older car?
Whether comprehensive auto insurance is worth it for an older car depends on the car’s value and your financial situation. If your car’s value is low, you might pay more in premiums than you would receive from a claim. It’s important to weigh the cost of the coverage against the potential benefit of having it.