Comprehensive Car Coverage is a type of car insurance coverage that gives you protection against losses caused by situations other than collision. The main reason to purchase Comprehensive Car Insurance is to offset the cost of vehicle repair or replacement which involves huge expenditure. When you have comprehensive coverage included in your car insurance policy, then you will incur only the out of pocket expenses equal to the amount of deductible on your insurance if it is damaged by animals, fire, flood, theft or vandalism. This coverage will pay for the repairs after deducting the deductible you have chosen. You can select a high deductible that you may comfortably pay out of pocket to lower you premium.
The states may not require a driver to have comprehensive coverage. The lien holder of vehicles purchased through lease will require you to have this coverage.
Who can benefit from purchasing Comprehensive coverage?
- If you drive a car that is financed or leased, your finance company will probably require you to carry comprehensive coverage.
- If your vehicle is new or in excellent condition, you may want to cover your car using comprehensive coverage to replace or repair it in the event of incurring a loss due to reasons other than collision.
- If you have an older car or one in poor condition, you may not want to pay for this coverage.
Comprehensive coverage covers the following losses:
- Damage caused when hit by animal
- Damage due to falling trees or objects
- Damage caused by vandalism
- Broken or cracked windshields
- Damage caused by weather
- Damage due to flood
- Damage due to fire
What is excluded in the comprehensive coverage?
· Damage due to normal wear and tear
· Damage resulting from a collision
· Defective vehicle
It is necessary to understand your insurance options and comparison shop when you purchase your auto insurance so that you will not face harsh surprises later.