Comprehensive car insurance claims cover damage caused by events other than collision with another vehicle or object (covered by collision coverage). Examples include theft, vandalism and natural disasters.
As with collision coverage, comprehensive car insurance comes with its own set of deductibles – this amount represents what must be paid before any claims payment can begin by your insurer.
Damage to Your Car
Comprehensive insurance is typically filed to cover damage from natural disasters, like hurricanes or intense hail storms, which will repair or replace your car depending on its age and value, less your deductible. Other reasons to file include glass and windshield damage, theft and vandalism. While both comprehensive and collision policies cover repairs to your car after an accident has taken place, their coverages differ based on what caused it; collision includes damages caused by other vehicles while comprehensive covers non-collision related things like weathering damages, hitting animals or fire damage among other causes.
Prior to making a decision about comprehensive coverage, it’s essential that you understand its purpose. Comprehensive policies typically cover up to the actual cash value (or depreciated value) of your car less your deductible; this amount typically decreases as your car ages and becomes damaged further.
Some drivers may decide against purchasing comprehensive coverage if their car has already been paid off and they believe there is low risk of non-collision damage. When making this decision, it is also essential to take into account both deductibles and premiums associated with comprehensive insurance before making a final choice. In a study by NerdWallet conducted over six months it was discovered that filing one comprehensive claim raises insurance rates by an average of $36 during that time.
If you lease or finance your vehicle, lenders typically require comprehensive auto insurance in order to protect their investment. While comprehensive coverage might cost extra, sometimes its worth it depending on your living environment – for instance if you live near natural disaster zones or have recently purchased something of high value it might be worthwhile investing in this extra protection for both yourself and the lender.
Decision-makers weighing in on whether or not to file comprehensive claims must consider both costs incurred due to damage and your deductible when making their decisions. If repair/replace costs surpass your deductible amount significantly, filing may make sense. However, if the repair or replacement cost falls substantially under your deductible amount, filing a claim might not justify its additional expense and risking an increase in premium at renewal time. Consider regularly comparing quotes from multiple auto insurers to identify the optimal price and policy that fits you best. NerdWallet provides a helpful free car insurance comparison tool to make this easier: just enter your zip code to begin comparing car insurance rates! NerdWallet is an independent car insurance website that allows users to quickly and easily compare personalized rates from top-rated providers. By examining your car policy’s details, NerdWallet can show how much savings there could be on future car purchases.
Damage to Other People’s Cars
When filing a comprehensive insurance claim, your insurer will pay out up to the actual cash value (ACV) of your car less any applicable deductible. This figure reflects its pre-damage worth or what would be due if trading it in for another vehicle; additional coverage may also apply, though likely just a fraction.
While collision insurance covers damage caused by colliding with another car or stationary object, comprehensive car insurance also protects your car against events that happen after parking, such as theft and vandalism. Furthermore, comprehensive car insurance provides protection in situations beyond your control such as natural disasters or severe weather events that might happen while it’s parked; taking steps such as driving slower and avoiding distractions behind the wheel could reduce collision risks; however comprehensive car insurance will help provide peace of mind against unexpected costs that might otherwise leave you financially exposed.
Comprehensive and collision insurances differ primarily in how their policies define a “collision.” Both cover damages caused by hitting animals or non-moving objects, but only comprehensive pays out in cases such as hitting tree branches that fall onto your parked car while comprehensive doesn’t. Collision coverage pays out in cases involving other cars as well as when trying to avoid animal strikes leads to hitting mailboxes or fences instead.
Most drivers can take several measures to protect themselves from hitting wildlife while driving, such as following posted warnings and driving slowly during dawn and dusk when animals are active. Unfortunately, accidents involving wildlife remain fairly frequent; comprehensive coverage can help drivers mitigate financial impact of these unfortunate accidents.
Comprehensive car insurance covers repairs or replacement for your vehicle as well as total losses under certain covered claims, when repairs exceed its actual cash value (ACV). Most comprehensive policies offer coverage up to the ACV less any applicable deductible.
Comprehensive car insurance may have its own set of advantages, yet is typically more costly than collision coverage. Therefore, it’s essential to carefully consider all your options when considering comprehensive coverage versus collision as a viable choice for you. Be mindful that if you’re leasing or financing your vehicle, your lender is likely requiring that you carry comprehensive coverage as a condition of their loan agreement. They want to be protected if something occurs to your car while under their care. Car insurance can be an investment worth making – provided it meets your specific needs and meets them well. Call us to find out about the different types of coverage we have and get a free car insurance quote today!
