Comprehensive vehicle insurance is often an important part of many insurance policies. Let’s discuss this coverage further, show what it does and why it can be a very desirable and important part of an auto policy.
Basically comprehensive vehicle insurance protects you from the responsibility for repair or replacement costs associated with damage caused to your car from any non accident related situation.
So if your vehicle is stolen, the comprehensive coverage will pay for the replacement value of your vehicle. It will also pay for damage which can occur from most acts of God such as fire, flood, hailstorms, or wind damage.
When you obtain comprehensive vehicle insurance, the insurance company you work with will provide extensive details as to what will be covered and what will not be covered.
It is very important to understand these factors so you don’t find yourself in a bad situation when something is not covered you were counting on.
Almost all comprehensive coverage has a deductible attached to it. The deductible can range from $100 up to $1,000 or more. Higher deductibles equate to lower premiums but they also increase the risk of higher out of pocket expense.
So if your deductible is set at $500, this means that the insurance company will cover the total costs of the repair or replacement less $500 which is your responsibility.
It is also important to realize that comprehensive insurance applies to the vehicle itself. So this coverage will take care of repair or replacement costs to the vehicle itself as a result of situation not related to an accident.
But it does not cover expenses items in the car like personal items, etc. The insurance will cover the cost to replace the vehicle if it is stolen but it will not cover the cost of items inside of the vehicle at time it was stolen. That would be covered by other types of insurance like renters or homeowners insurance.
You should discuss your needs with a qualified insurance professional to determine the best type of comprehensive coverage for you. And it is very important to understand what items are covered and what items are not covered in your policy.
Keep in mind that there is a great deal of variability when it comes to comprehensive insurance. Therefore you may want to consider checking with other companies to see how their coverage stacks up against your current company.
This will help to ensure that you are receiving the best possible coverage which meets your needs and helps to protect you against unexpected loss.