What Is Comprehensive Car Insurance?by Amber Kelsey
Comprehensive car insurance is not required in most states. Some lenders, however, require car owners to carry comprehensive coverage until the car loan is paid off. For some older cars or vehicles with a lot of damage, the cost of adding a comprehensive insurance policy might not be worth paying. Generally, though, comprehensive car insurance is beneficial because it protects you from unpredictable and unexpected mishaps.
Comprehensive car insurance covers damage to the vehicle that was not a result of a car accident. Comprehensive policies typically cover fire damage, theft, vandalism, animal damage, weather-related damage and damage caused by things falling on your car.
Comprehensive car-insurance policies typically have deductibles, which is the amount of money you pay out of your own pocket for damages before the insurance company starts picking up the bill. Your insurance premiums are generally lower if you choose a high deductible. The most common deductible amount for comprehensive car insurance is about $500.
Comprehensive car insurance costs relatively little when compared to the cost of replacing a car. Comprehensive coverage is an especially good idea if you have just bought a new or very expensive vehicle.
Insurance companies sometimes exclude specific damages from comprehensive policies. Always check the fine print of an insurance policy before you sign so you have a clear idea of what is covered and what isn't.
Although many people think comprehensive car insurance will cover every type of damage, this just isn't true. This type of insurance will only cover collision damage caused by hitting an animal. Comprehensive policies also won't cover any damage you inflict on others or any medical bills.
- photo_camera Creative Commons photo by Karma Blue