Comprehensive auto insurance is one kind of coverage among the typed of auto insurance that allows you to repair and replace your vehicle in the incidence of an accident, damage, or theft, provided its not a collision. Hence, the other name for comprehensive auto insurance in the “other than collision” coverage. No surprise, it provides financial help to cater to vandalism, damage from fire, falling objects like hail, or a tree. In case you are leasing or financing your car, the lending party in the equation will like to require the vehicle to come with comprehensive coverage. For those who have full ownership of their car, you can choose to have a comprehensive policy or not. If you considering the different auto insurance options available or just doing a review for your current policy, a comprehensive policy might be right for you. In this post, you can find out what this policy protects, its uniqueness from collision coverage, and how deductibles and limits apply to it.
The Different things Comprehensive Auto Insurance Covers
- Falling objects
- Civil disturbances like riots and lootings.
- Natural disasters like tornadoes and hurricanes
- Animal-related damages
Issues It Doesn’t Cover
- Vehicle collision-related damages to another person’s vehicle
- Collison related to damage from another car
- Medical expenses due to collisions and motor accidents
Limits and Deductibles of Comprehensive Auto Insurance
You will need to choose a set deductible when you go in for comprehensive coverage. This deductible is payable out of the pocket amount to cover a claim. For instance, if you chose a $400 deductible and later your car sustains damage from fire in a covered claim. In this case, this damage might cost $1400 to repair, your insurance company is cover $1000, and you pay an amount of $400 as your deductible. However, there is a limit to comprehensive coverage and what it can cater for. Hence, your policy can only pay a certain amount as the maximum amount for a covered claim. Usually, your car’s actual cash value is the maximum limit of your comprehensive auto insurance. Assuming your car gets stolen, your insurance company would pay you’re the depreciated value of your vehicle minus the amount deductible. Simply put, if you intend to find a newer replacement for your stolen car, you have to dig some money out of your pocket. Nevertheless, you need your insurance company will give you a reimbursement. However, it is crucial to note that your comprehensive limit and deductible are different from your policy’s collision limit and deductible.
Choosing a Deductible for your Comprehensive Coverage
Typically, you will be offered comprehensive deductible amounts in incremental sets like $400, $1000, or $1400. Ultimately, the higher you’re deductible for comprehensive auto insurance, the lower your premiums will be. This way, you get to save upfront money. However, the amount of money that would come out of your pocket for a claim will be higher. The same applies in the case of a lower comprehensive deductible when the amount you pay a higher amount for your auto insurance coverage.