The comprehensive coverage covers all losses and damages which are not caused by collision to the insured’s vehicle. These include theft, windshield damage caused by stones, vandalism, etc. Comprehensive coverage and collision coverage are usually optional, and most people purchase these types of coverage for a new vehicle they have bought. For new motor vehicles purchased through a loan, most lenders require any of the two to protect their collateral.
What are Covered by the Comprehensive Insurance?
The comprehensive coverage is the insurance policy you should purchase to help you cover any damage to your vehicle that has been a result of the following:
- Falling objects
- Fire
- Theft
- Vandalism
- Natural calamities (such as tornadoes or hurricanes)
- Damage caused by animals
- Any violent civil incidents (for example a riot which can cause damage or destruction to you car)
- Windshield and glass damage
- Rocks and other objects falling on cars
- Floods, lightning, wind, storms, earthquakes, and hail
- Accidents with animals (for example, hitting a deer)
What’s Not Covered?
- Any damage to your car caused by a collision with another vehicle
- Any damage to another person’s vehicle from a collision
- The insured’s (or the insured’s passengers’) cost of medical care after an accident
How Does Comprehensive Coverage Works?
- A limb from a tree falls on your vehicle. For example, a tree limb falls on the windshield of your car.
- File an insurance claim. An insurance claim is a request to your insurance provider to pay for your losses. You can file a claim by calling your provider, through online, or with a mobile app, depending on your insurer.
- The comprehensive insurance will cover the cost of repair. If you have a deductible of $1000 on your comprehensive coverage. You would pay the $1000 and your insurance provider will pay for the remaining $4000.
Why Should You Buy Comprehensive Coverage?
If you are finding it hard to decide if you should purchase comprehensive insurance, the following points can help you make the best decision:
- If you are leasing your car, most lenders require this type of insurance until the vehicle is paid in full.
- Consider the worth of your car and its age.
- Will you have the financial resources to pay for repair or replacement of your car if gets damaged or destroyed in an accident?
- Consider the annual premiums for collision and comprehensive coverage.