What is comprehensive auto insurance and what are the things you need to know
Today, we will dive deep, in order to fully understand comprehensive car insurance. These includes comprehensive insurance definition, how it works and the things you need to know. Also, to help you determine if this product fits you and your budget.
Comprehensive insurance definition. It’s a type of car insurance policy. It covers damage to your car that isn’t protected by collision insurance. Comprehensive Insurance for car includes theft, natural calamities and others.
Car insurance policy consists of 3 components. These are collision insurance, liability and auto comprehensive insurance. In United States. Most states require drivers to carry liability insurance. Both collision and comprehensive insurance for car are only optional to those who owns a car completely.
How Auto Comprehensive Insurance Work
If you are going to file a claim. Comprehensive insurance works same as other type of car insurance. If someone owns a Toyota Prius worth $12,000, its deductible is $1,000. And if a natural calamity destroys the car, the owner will receive $11,000. But if the driver doesn’t have comprehensive insurance and it was destroyed by natural calamity. Neither the collision nor the liability portion of the policy will cover the damage.
What Comprehensive Car Insurance Covers
Let’s take a look at some examples of comprehensive covers:
- Theft
- Vandalism
- Natural phenomenon like hurricanes
- Falling objects like rocks or branches
- Collision with animals
- Fire
- Riot
How Much Comprehensive Insurance For Car Cost
According to NAIC, in 2018 the average premium in comprehensive coverage is $168. But the cost of comprehensive insurance vary depends on the following factors:
First is the age of the customer. Second is the car information which is consists of maker, model and age. Third factor is the driver’s driving record. Another factor is the deductibles, wherein insurers will let you choose the amount you prefer. Take note that the higher the premium the lower the deductible is. Lastly, they vary depend on which state you live.
What are the advantages and disadvantages of auto comprehensive insurance
Advantages
Comprehensive insurance protects you from natural accidents or things that beyond control. So, if a hurricane hit your car. Automatically the company will pay its damage. Since it covers break-ins, or damages from a riot. This will suit to people who are living in a high crime area. The good thing here is that your car is insured even if its parked. So, your broken windshield because of fallen rocks or branches are also included in the cover.
Disadvantages
It doesn’t cover damages from a collision. So, if you get yourself into an accident. Like crashing into other car comprehensive insurance will not pay the damages. Also, it doesn’t cover the things that are stolen from your car. Lastly, if you have an old car with high mileage. It will cost you a lot of money.