Comprehensive car insurance may have a head-scratching name, but it helps in paying for a very specific set of problems. A comprehensive car insurance plan is an additional coverage option and is not a separate insurance policy of its own.
Comprehensive coverage will not just cover a typical auto accident, but any other type of damages that your vehicle could face. It even covers the things that can happen to your vehicle while it’s sitting in the driveway. Beem, America’s first Al-powered Smart Wallet App, is here to resolve all your doubts about comprehensive car insurance.
What is Comprehensive Car Insurance
A comprehensive car insurance plan ensures your vehicle is covered for circumstances of the aforementioned types, which are outside of your control. No state administration wants one to have comprehensive insurance coverage compulsorily.
However, it may be helpful to acquire a comprehensive plan to please your lender if you plan to lease or buy your car on a loan. Regardless, comprehensive insurance coverage for your car is really helpful in keeping you financially protected.
Comprehensive auto insurance is often looked at as an all-encompassing insurance as it fills all the gaps left by liability and collision insurance. The coverage helps you repair or replace your car depending on the damage sustained by your car.
Types Of Damages Covered by comprehensive car insurance
The types of damage covered by comprehensive car insurance include:
- All types of natural disasters like tornadoes, storms, hurricanes, earthquakes, and hailstorms.
- Fire accidents, including vehicle malfunctions, civil commotions, and explosions
- Vandalism, theft, and road rage.
- Damage from animals, which makes the coverage especially necessary if you reside close to nature.
- Broken or shattered windows or windshields.
- Falling objects.
- Acts of terrorism and riots.
Types Of Damages Not Covered by comprehensive car insurance
It is important to note that a comprehensive coverage plan does not pay for damage from accidents where the owner may be at complete fault. Moreover, damages from crashing into avoidable stationary objects will not be covered.
Some aspects that comprehensive insurance does not cover include:
- Legal fees
- Damages to the other person’s property or vehicle if you caused the accident
- Repairs from wear and tear to your vehicle
- The cost of injuries to you or the other person
- Loss of income or job to you or your passengers from any type of accident
- Theft of personal property from your car
Claiming Comprehensive Car Insurance
While claiming the insurance, most accidents covered by comprehensive insurance are straightforward, but others may require more detailed proof. These include damages from vandalism, civil disturbance and negligence.
Coverage for negligence is one of the most compelling aspects of comprehensive insurance. While most states have varied definitions for negligent accidents, comprehensive insurance does sometimes pay for damage or loss from negligence. This may include instances like you backing out of the parking lot without checking for other vehicles or objects. However, in the event of theft, negligence indicating to the point of you leaving your keys in the car cannot be claimed.
How Does Comprehensive Car Insurance Work?
Comprehensive insurances come with a deductible. A deductible is an amount paid by the insurance holder each time you file a claim before the insurance provider. You can choose the amount of deductible the insurance policy you buy has and this will affect the premium you pay every year.
For example, if your car is worth $10,000 and you have a deductible of $1,000. If your vehicle is damaged extensively and is beyond repair, your reimbursement from the policy will pay for the rest of the car’s worth.
Comprehensive insurance is usually cheaper than a collision plan. Insurance companies consider many different rating factors when calculating the cost of coverage. This includes information like the driver’s age, gender, marital status, driving experience, claims history and type of car among others.
Comprehensive And Collision: The Difference
Comprehensive and collision insurance are two types of auto insurance coverage that are both legally optional. However, they pay for your car damages with varied terms for claims. Here’s the difference between the comprehensive and collision car insurance
While comprehensive coverage pays for almost any damages that could occur to your car, collision coverage pays only for damages that occur from crashes. A collision car insurance plan pays for damage to your car arising from a crash and this could mean you crashing into another car plying on the freeway, or another car ramming into yours while you are parked.
Collision coverage includes reimbursement for damages that may arise from driving into stationary objects, ditches or potholes. A comprehensive car insurance plan, on the other hand, covers damages caused by all other factors.
The plan covers damages that could be caused by actions that are sometimes referred to as ‘acts of God’, like damages due to a tree falling on your car or a hailstorm. Comprehensive coverage also provides almost complete reimbursement for the theft of your car.
Companies known for offering competitive comprehensive car insurance rates:
- Amica Mutual
- Auto-Owners Insurance
- The Hartford
- Erie Insurance
- State Farm
- Liberty Mutual
- Farmers Insurance
- Safeco Insurance
It is important to not be confused between comprehensive car insurance and full coverage. Comprehensive coverage is only a part of full insurance coverage, which is made up of both comprehensive and collision.
Whether in full or part, having car insurance will help you be prepared for financial losses and burdens.