What is Comprehensive Insurance Simple Overview

September 20, 2017

What is Comprehensive Insurance? Simple Overview

What is Comprehensive Insurance? Simple Overview - Comprehensive insurance is the coverage that helps you to pay replacement or repair your vehicle if it was damaged, stolen or other incident except for collision. Comprehensive coverage is typically including of vandalism, fire, flood, natural disaster, falling object and theft. Of you were leasing or financing your car, the lender might require you to get comprehensive coverage. If you have your own vehicle, this is optional coverage in your auto insurance policy.

What is Comprehensive Insurance Simple Overview
What is Comprehensive Insurance Simple Overview

What was covered in comprehensive insurance?
Comprehensive insurance cover your car which is not as result of collision, these following conditions:
  • Fire
  • Theft
  • Vandalism
  • Falling object (tree or hail?
  • Natural disasters (such as: flood, tornado and hurricane)
  • Damage that had been caused by animals.
  • The civil disturbance (such as: the riot that cause damage in your car)

What was not covered in comprehensive insurance?
  • Causing damage of other vehicle from accident
  • Your damaged car that caused by collision
  • Your medical cost after getting collision

What you should know about deductibles and limits in comprehensive insurance
If you purchase comprehensive insurance, you will decide a set of deductible that is the number that you should pay out of pocket in order to get the covered claim. You should know that comprehensive insurance also has the limit or maximum amount that will pay in your policy toward the covered claim as well. The limit in the comprehensive coverage typically is the actual cash or value in your vehicle. If you car was theft, then you policy will reimburse your depreciated value toward your car. In other word, if you want to replace your stolen car with the newer model, so you should use some your money, besides you use the reimbursement cost from your insurance company.

Why purchase the comprehensive insurance?

If you wondering why you should purchase comprehensive insurance, here several considerations bellow:
  • Comprehensive coverage might be required by your lender, as mentioned before if you were financing or leasing your car, the car’s lender will require to bring collision and comprehensive coverage until you car was paid off.
  • Considering about how old our vehicle and how much is it worth? If you had been paid off your car then comprehensive insurance is optional. You can consider purchasing this coverage based on your need. If you cannot afford much money when you car is stolen or damaged, then comprehensive or collision coverage can be your brilliant investment as well.

Those explanations might helpful and give you simple overview about comprehensive insurance. However, each car insurance company offers you with different rates from one to other companies as well. This is because each insurance company use their own formula to calculate the risk and decide what you should pay for coverage. It means that there is not two companies who have same rates for the same policies as well. Sometime, the difference can reach hundred dollars as well. So, if you do not compare the rates, you might end up in over paying.
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