Comprehensive Insurance

August 27, 2017

Comprehensive Insurance

Comprehensive Insurance - Do you know what comprehensive insurance is? Well, let’s get to know this particular insurance closer. It basically refers to insurance coverage helping to repair or replace your car in case it is damaged or stolen in incident not collision. It covers damage from various causes including falling objects, vandalism or fire. But remember, it doesn’t cover damage caused by collision. This insurance coverage basically is common if you are currently leasing or financing your car. But if you own the car outright, it becomes optional coverage on insurance policy for your car.

Comprehensive Insurance
Comprehensive Insurance

Coverage of Comprehensive Insurance

You may wonder what comprehensive insurance actually covers. Well, just as explained before, this covers for any damage as long as it is not caused by collision. For instance, it covers damage caused by fire, falling objects, civil disturbance like riot, damage done by animals, natural disasters like tornado or hurricane, vandalism and theft. And it leaves you with damages that are not covered by the comprehensive insurance including damage caused by collision, damaged to someone else’ car from collision and medical expenses for you and your passenger after accident or collision.

Limits and Deductibles

When you buy the this coverage for your car, you will be required to set deductible which refers to amount that you should pay at the beginning toward covered claim. For instance, if you set the deductible at $800 and later your car’s repair costs $2000 then the insurance will pay $1200 and you will pay the $800.

This coverage also has limit. It refers to your policy’s maximum amount that you pay toward covered claim. The amount is usually set according to your car’s actual value. For example, in case your car gets stolen, your car insurance policy will reimburse you for the depreciated value of your car. So, if you want to purchase a new car after your previous car got stolen, you cannot solely depend on the insurance to buy it. Instead, you need to use some of your money as well for purchasing new car.

Reasons to Buy Comprehensive Coverage

When it comes to based on what reasons you should purchase the comprehensive coverage, there are more than enough reasons. The first reason is the fact that the comprehensive coverage can sometimes be required by the lender of your car. It means that lender to whom you are financing or leasing your car requires both collision and comprehensive coverage at least until you have paid off. But once you have paid off the car, it is still a good thing to have the comprehensive coverage. We do not know what we will have ahead. Who knows maybe our car gets damaged due to disaster or gets stolen when we are a bit careless. So, the coverage always offers the protection that cars’ owners need. However, if you feel like being a bit tight in budget, you can choose to not having the comprehensive coverage and only the collision coverage. Paying for both collision and comprehensive coverage can be quite expensive, indeed.
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