What is comprehensive insurance,Comprehensive insurance is the coverage that helps pay for the cost of replacing or repairing your car if it is stolen or damaged in a non-collision accident.
Comprehensive coverage, sometimes called "non-collision coverage," covers damage caused by fire, vandalism, or falling objects (such as the tree or the tree).
If you finance or lease your car, the lender will likely require comprehensive coverage. If you own your car outright, this is optional coverage on your car insurance policy.
If you are looking for car insurance or reviewing your current policy, you may want to consider comprehensive coverage. Learn about comprehensive insurance that helps protect, how it differs from collision coverage, and how coverage limits and discounts apply.
What is covered by comprehensive insurance
Comprehensive helps cover damage to your car that's not the result of a collision, such as:
- Theft
- Vandalism
- Fire
- Natural disasters (like a hurricane or a tornado)
- Falling objects
- Damage done to your car by animals
- A civil disturbance (like a riot that results in damage or destruction of your car)
What's not covered by comprehensive insurance
- Damage to your car from the collision
- The damage to another person's car from the collision
- Your (or your passengers') medical expenses after an accident
Comprehensive coverage deductibles and limits
When you buy comprehensive coverage, you'll choose a pool deductible, which is the amount you pay out of pocket for the covered claim. Let's say you chose a $500 deductible, and your car is later damaged in a covered claim. If your car costs $1,500 to fix, you'll pay $500 toward the deductible, and your insurance will pay the remaining $1,000.
Comprehensive coverage has a limit, or the maximum amount the policy will pay for the covered claim. The maximum comprehensive coverage is usually the cash value of your car.
If your car is stolen, for example, your insurance company will reimburse you for the depreciated value of your car, minus the deductible. In other words, if you want to replace your stolen car with a newer make and model, you'll likely have to use some of your own money to do so, in addition to using a refund from your insurance company.
Keep in mind that the deductible amount and ceiling are separate from the collision deductible limits and limits on your policy.
Choosing a comprehensive coverage deductible
Your insurance company will offer comprehensive discounts in specific increments, such as $500, $1000, or $1500. Choosing a higher deductible usually means your premiums will be lower, which can save money up front. However, you may have to pay more out of pocket to get a covered claim. Also, choosing a lower deductible means more than you pay for coverage.
Your agent can help you determine the best discounts and limits for your needs.
What is the difference between collision and comprehensive insurance
Collision coverage helps pay for the cost of repairing your car if it is damaged in a collision with another vehicle or an object, such as a fence. Generally, collision coverage begins because the driver has been involved in a car accident.
Separate comprehensive collision coverage. This helps to cover different types of losses that do not normally result from driving a car, such as theft, hail or falling trees.
Why get comprehensive coverage
If you are wondering if you should buy comprehensive coverage, here are some considerations:
A car lender may require comprehensive coverage.
If you are renting or financing your car, the lender may require you to get comprehensive and collision coverage until the car is paid off.
How old is your car and what is its value?
If you paid for your car, comprehensive coverage is optional. It might be a good idea to know the value of your car's Blue Kelly Book. Would you be able to pay that amount to repair or replace your car if it was stolen or damaged in an accident? If you can't afford to pay a lot out of your pocket, buying optional coverages, such as comprehensive and collision coverage, may be a smart investment.
What are the annual premiums for comprehensive and collision coverage
The Insurance Information Institute suggests that you take the amount you'd pay in one year for comprehensive and collision coverage, and multiply that number by 10. Is your car worth less than this number? After that, comprehensive and collision coverage may not be an affordable option for you.
In other words, you may want to talk to your agent about whether it makes sense to include these coverages in your auto insurance policy.
Do you have questions about comprehensive coverage? Talk to your insurance provider.
What is comprehensive insurance,Comprehensive insurance is the coverage that helps pay for the cost of replacing or repairing your car if it is stolen or damaged in a non-collision accident.
If you are looking for car insurance or reviewing your current policy, you may want to consider comprehensive coverage. Learn about comprehensive insurance that helps protect, how it differs from collision coverage, and how coverage limits and discounts apply.
Comprehensive helps cover damage to your car that's not the result of a collision, such as:
Comprehensive coverage deductibles and limits
When you buy comprehensive coverage, you'll choose a pool deductible, which is the amount you pay out of pocket for the covered claim. Let's say you chose a $500 deductible, and your car is later damaged in a covered claim. If your car costs $1,500 to fix, you'll pay $500 toward the deductible, and your insurance will pay the remaining $1,000.
Comprehensive coverage has a limit, or the maximum amount the policy will pay for the covered claim. The maximum comprehensive coverage is usually the cash value of your car.
If your car is stolen, for example, your insurance company will reimburse you for the depreciated value of your car, minus the deductible. In other words, if you want to replace your stolen car with a newer make and model, you'll likely have to use some of your own money to do so, in addition to using a refund from your insurance company.
Keep in mind that the deductible amount and ceiling are separate from the collision deductible limits and limits on your policy.
Your insurance company will offer comprehensive discounts in specific increments, such as $500, $1000, or $1500. Choosing a higher deductible usually means your premiums will be lower, which can save money up front. However, you may have to pay more out of pocket to get a covered claim. Also, choosing a lower deductible means more than you pay for coverage.
What is the difference between collision and comprehensive insurance
Collision coverage helps pay for the cost of repairing your car if it is damaged in a collision with another vehicle or an object, such as a fence. Generally, collision coverage begins because the driver has been involved in a car accident.
Separate comprehensive collision coverage. This helps to cover different types of losses that do not normally result from driving a car, such as theft, hail or falling trees.
Why get comprehensive coverage
If you are wondering if you should buy comprehensive coverage, here are some considerations:
A car lender may require comprehensive coverage.
If you are renting or financing your car, the lender may require you to get comprehensive and collision coverage until the car is paid off.
How old is your car and what is its value?
If you paid for your car, comprehensive coverage is optional. It might be a good idea to know the value of your car's Blue Kelly Book. Would you be able to pay that amount to repair or replace your car if it was stolen or damaged in an accident? If you can't afford to pay a lot out of your pocket, buying optional coverages, such as comprehensive and collision coverage, may be a smart investment.
What are the annual premiums for comprehensive and collision coverage
The Insurance Information Institute suggests that you take the amount you'd pay in one year for comprehensive and collision coverage, and multiply that number by 10. Is your car worth less than this number? After that, comprehensive and collision coverage may not be an affordable option for you.
Do you have questions about comprehensive coverage? Talk to your insurance provider.
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