Comprehensive auto insurance covers your car against just about everything except a collision. It is similar to collision insurance except that it covers damage to your car caused by an unknown person or an act of God.
Most direct and accidental losses not caused by a collision are covered by auto insurance comprehensive coverage. These losses generally include:
- Fire
- Theft or larceny
- Collision with an animal
- Falling or flying objects
- Broken glass
- Windstorm
- Explosion or earthquake
- Malicious mischief or vandalism
- Hail, water or flood
- Riot or civil commotion
Additionally, if your car is stolen the following may also be covered:
- stolen luggage or clothing left in the car
- reimbursement of travel costs beginning 48 hours after the car is reported stolen to the police and insurer
Comprehensive insurance covers damage to your car if you hit a deer crossing a highway. Car insurance companies reason that you will have a greater chance of avoiding a car than trying to dodge a deer running directly in front of you. And make no mistake ─ deer can cause a great deal of damage to your car. According to the Insurance Information Institute deer-vehicle collisions cost an average of $2,800 per claim; $10,000 if a driver or passenger is injured,
Comprehensive auto insurance coverage will pay for your loss according to the fair market value of your car, less your deductible. Like collision insurance, comprehensive is probably required by the lender holding your car loan.
It is also important to know the exclusions of comprehensive coverage. Some of the most common ones follow:
- Electronic equipment not permanently installed. This equipment could include but not be limited to compact disc players, radios, tape decks and stereos.
- Other electronic equipment such as telephones, two-way mobile radios, television monitors, scanning monitor receivers, CB radios, receivers, audio cassette recorders, radar detectors and personal computers. But this list is not all inclusive.
- Tapes, discs, records or other medial used in the equipment described above.
- The car is destroyed or confiscated by governmental or civil authorities because you or members of your family were engaged in illegal activity.
- A trailer or camper body that was not declared on your comprehensive insurance policy was stolen.
- Equipment, such as awnings or cabanas designed to add living space was stolen.
The high cost of comprehensive car insurance tempts even the most cautious car owner to drop comprehensive coverage but before you do, consider the even higher cost of repairs to your car. If a tree falls on your car, the cost to repair it could exceed $2,500. If you have a $500 deductible, that would be your out-of-pocket expense. Many people choose a $500 deductible, but doing so will cause much higher premiums. You can save as much as 20% off your comprehensive rates by choosing a higher deductible.
Comprehensive coverage is particularly important if you:
- Have a new car
- Have an expensive car
- Park your car overnight in a high crime area
- Regularly park your car where it can be easily damaged, such as under trees or close to a playground or golf course
- Drive in an area known for windshield cracking, hail storms or floods
- Drive frequently on highways where rocks may chip or crack the windshield
Comprehensive coverage can put a dent in your budget but you can lower the monthly premium by electing to pay a higher deductible. Car insurance full coverage is a buyer’s market so shop around for the best value and coverage. Some of the factors that affect the cost of comprehensive coverage are:
- The make and model of your car
- The deductible on your policy
- The area you live in
- The number of claims you have filed in the past (with other insurance companies also)
- Payment history
Filing frequent comprehensive claims may have an affect on your premiums. Insurance companies track all claims and use the information to watch for trends; this information aids them in setting their rates.
Any insurance company that offers collision insurance offers comprehensive. Some insurance companies will give you a reduced rate if you have both kinds of coverage with one company. Whatever you choose to do, comprehensive car insurance makes a lot of sense if your car is worth taking care of.
- What Does Comprehensive Auto Insurance Cover?
- Comprehensive Car Insurance
- What is Full Coverage Auto Insurance?
- How Much Auto Insurance Do I Need?
- How to Save Money on Auto Insurance?
