Comprehensive coverage is a type of auto insurance that is designed to protect you against losses by paying for repairs to your vehicle or replacement of your vehicle if it has been stolen or damaged by events that aren’t considered accident-related.
Typically, with comprehensive coverage your vehicle will be covered for damage from the following:
- Fire.
- Theft.
- Vandalism.
- Falling (missile) objects.
- Hitting or being hit by an animal, including deer, cows, bears, moose and birds.
- Natural disasters, such as floods, hurricanes, and tornadoes.
Remember that not all policies are the same – and neither are auto insurance companies. So, before purchasing comprehensive coverage, make sure you know exactly what your comprehensive policy will cover.
Unlike liability insurance, comprehensive is an optional coverage. And, to include it on your policy, you must also purchase collision insurance coverage. There’s no way around it if you are financing your vehicle through a bank or other lienholder. They will require it as part of the purchase or lease agreement you signed.
Key points about comprehensive insurance:
- In order to purchase comprehensive coverage, you will also have to purchase collision insurance coverage.
- If you lease or finance your car, your bank or lienholder will require both collision and comprehensive coverage.
- Choose a deductible with an out-of-pocket cost that will not cause a major hardship for you if you are involved in an accident. You don’t want to be left without enough money to repair the damage to your vehicle.
Because comprehensive and collision are optional types of car insurance coverage, you should consider some factors before purchasing these coverages. The value of your car will determine whether you need collision and comprehensive coverage or not. If your car is:
- Older and/or low-value – purchasing these coverages may not be worth the money, since you will only be paid up to the estimated fair market value of your vehicle.
- Newer and/or high-value – these coverages make sense as they can save you from paying out significant costs to repair or replace your vehicle if stolen or totaled. If your vehicle is being financed through a bank or other lienholder, they will require you to purchase both coverages.
Glass Repair and Replacement
Glass repair and replacement is typically covered through your comprehensive coverage.
Depending on the size of the chip or crack, some car insurance companies may waive the deductible. However, if the windshield needs to be replaced, you will likely be required to pay your deductible.
Choosing Your Deductibles
Don’t forget that a deductible is the amount you are responsible for that comes directly out of your pocket before your insurance company pays out on a claim. Collision and comprehensive insurance coverages require you to pay a pre-set deductible whenever you make a damage claim that falls under either coverage. Your insurance company can help you decide on a deductible that best fits your situation.
You may choose a higher deductible to lower your premium when gathering cheap car insurance quotes. But, consider this – you will be paying more out of pocket towards a claim in the event you have an accident. So, while you might be saving money on your premium, the last thing your want is to not have enough money set aside to cover your higher deductible should your vehicle suffer extensive damage.
Because not all auto insurance companies are alike, contact one of our representatives to learn more about the right coverage choices for you.