Understanding Comprehensive Auto Insurance: Everything You Need to Know
You may have heard of comprehensive auto insurance if you’re looking for ways to protect your car beyond basic liability insurance. But what is comprehensive auto insurance, and do you need it? In this article, we’ll explain everything you need about comprehensive auto insurance.
What is Comprehensive Auto Insurance?
Comprehensive auto insurance, also known as “other than collision” insurance, is a type of coverage that helps protect your car from damage that isn’t caused by a collision. This can include damage from theft, vandalism, natural disasters, falling objects, etc.
How Does Comprehensive Auto Insurance Work?
When you purchase comprehensive auto insurance, you’ll pay a premium to your insurance company. If your car is damaged by a covered event, such as theft or a hailstorm, your insurance company will pay for the repairs or replacement up to your policy’s limits.
It’s important to note that comprehensive auto insurance is optional, but it may be required if you’re financing or leasing your car. In addition, some lenders or leasing companies may require you to carry specific deductibles or coverage limits.
What Does Comprehensive Auto Insurance Cover?
Comprehensive auto insurance covers a wide range of non-collision damage to your car. Some examples of covered events include:
- Theft
- Vandalism
- Natural disasters (hurricanes, tornadoes, floods, etc.)
- Fire
- Falling objects (trees, rocks, etc.)
- Animal damage (hitting a deer, for example)
- Glass damage (windshield cracks, etc.)
However, reading your policy carefully is essential to understand what is and isn’t covered. For example, some policies may not cover damage from a particular type of natural disaster, or they may only cover up to a certain dollar amount.
How Much Does Comprehensive Auto Insurance Cost?
The cost of comprehensive auto insurance varies based on several factors, including your driving history, car type, location, and more. On average, comprehensive coverage can cost anywhere from $100 to $500 annually.
Is Comprehensive Auto Insurance Worth It?
Whether or not comprehensive auto insurance is worth it depends on your situation. If you own a newer or more expensive car, comprehensive coverage can be a wise investment, as it can help protect you from financial loss in damage or theft.
On the other hand, if you have an older or less expensive car, it may not be worth paying for comprehensive coverage, as the cost of the coverage may outweigh the potential payout in the event of a claim.
Conclusion
Comprehensive auto insurance is a type of coverage that can help protect your car from damage that isn’t caused by a collision. While optional, it can be a wise investment for some drivers, especially those with newer or more expensive cars. If you’re considering purchasing comprehensive auto insurance, compare quotes from multiple providers to find the best deal.
