Drivers frequently seek extra auto coverage beyond what is mandatory in their country or state, as they know the value of financial safety and peace of mind while on the road. Luckily, there are enough insurance options to guarantee pleasurable driving for almost anyone.
Comprehensive car insurance is one of those options.
But before we move to it, let’s remind you of the basics of car insurance.
What Is Car Insurance?
Car insurance is an agreement between the buyer and the insurance company about covering listed accidents under listed conditions.
Most popular car insurance plans include
Property coverage – if your car gets stolen or damaged in a road accident.
Accountability coverage – if you cause a hit-and-run, a death, bodily injury, or destroy the other person’s car.
Medical expenses coverage – if you hit someone.
These, of course, are just some of the options available to you on the market. For example, uninsured motorist property damage (UMPD) coverage helps protect you on the road if an uninsured driver hits you.
The other types of coverage include:
Collision. Collision insurance pays for the damage to your auto when you hit a vehicle or object. Mechanical breakdowns and wear and tear are not covered, whereas the damage caused by a bad road is covered.
Comprehensive. Comprehensive coverage is offered in case of theft or damage caused by a non-collision incident, for example, fire, flood, hail, falling rocks or trees, and other environmental threats.
Glass coverage. Glass coverage pays for the windshield damage and the car’s side, rear, and glass sunroofs. Likewise, you can purchase extra glass protection for the uncovered parts.
Gap coverage. Gap insurance may save you if your car is declared a total loss, as this insurance pays the difference if your loan balance exceeds the value of your car. Gap insurance makes sense for leased automobiles.
Most US states require basic personal auto insurance. That said, you can always tailor your coverage to your needs and wants and refuse to renew your insurance at the end of the insurance term.
Comprehensive Car Insurance
Comprehensive car insurance may help if you have to pay for losses caused by theft, vandalism, or natural disaster – or if you finance or lease your car.
What Is Covered by Comprehensive Auto Insurance?
Comprehensive auto insurance covers the damage to your car caused by anything but collision, including:
- Natural disasters: earthquakes, floods, hurricanes, hail, and tornadoes.
- Projective or falling objects: trees, branches, or ice.
- Shattered windshields.
- Animal-related damage: damage by rodents, wild animals crossing the road, etc.
Comprehensive auto insurance excludes:
- Damage to another person’s car.
- Any health expenses.
- Legal costs associated with an accident.
- Stolen personal belongings.
However, like any other coverage, comprehensive coverage varies depending on the insurer, state, and individual factors, such as driving record, history of claims, and more. Always check with your insurer to learn more about your insurance, including the covered cases, limitations, and restrictions.
How Does a Comprehensive Policy Operate?
- You can get in touch with your insurance provider and submit a claim.
- If the claim is approved and you’ve paid the deductible (if any), your insurance company will pay the due amount.
How Much Can I Get If My Claim Is Approved?
The basis for your comprehensive insurance limits is usually the actual cash value of your car and the time of the accident. For example, if you have comprehensive coverage with a $500 deductible, and your automobile was damaged by a windstorm and suffered $5,000 in damage, you would pay $500 before your insurer covers the rest.
Cost of Comprehensive Auto Insurance
The Insurance Information Institute estimates that the average annual cost of comprehensive insurance is around $134. The real cost of your comprehensive auto insurance will depend on your car’s value, make, model, driving record, deductible, and other factors. All other things being equal, the premium of a safe driver will be lower than that of a driver who has caused several road accidents.
Top Car Insurance Companies
Some top-rated insurance companies include:
Is Comprehensive Insurance Mandatory?
Comprehensive auto insurance is not mandatory for vehicle owners. However, your lender or lessor may require comprehensive coverage to safeguard their investment (for example, if the car is stolen or totaled before you pay off the loan).
In the event of a total loss or theft, comprehensive coverage can also assist you in paying off the remaining balance of your loan. Depending on your situation, purchasing insurance may still be a good option, even if you do not require comprehensive coverage.
Is Comprehensive Auto Coverage Worth the Premium?
Whether comprehensive coverage is worth it depends on the situation. For example, it will likely make sense for a new expensive car.
Pros and Cons of Comprehensive Auto Coverage
Safeguards against non-collision damages
|Doesn’t cover expenses related to wrecks or auto accidents|
Less expensive than collision insurance
|Has a deductible|
Can be applied regardless of the fault
Frequently asked questions
Can You Own a Car without Insurance in the US?
You can own a car without insurance but can not drive legally in the US.
Is there any Difference between Classic and Regular Car Insurance?
Classic car insurance: applies to old (25 years or older) and exclusive cars (for example, cars with historical value), given to drivers with at least ten years of driving experience and a spotless driving record, and may be reconfigured to account for the ever-increasing value of the classic car. Usually, classic car insurance is 40% cheaper than regular car insurance.
Is Comprehensive Car Insurance Mandatory?
You are not obliged to have comprehensive car insurance, but you may need it depending on your driving habits, car use, and other factors.
Oleksandr is an expert in deep research. He covers insurance topics across four major insurance verticals – auto, health, life, and home insurance – while taking into account the legal landscape of the state in question. Come rain or shine, you can expect regular quality blogs and timely updates from Oleksandr.