AUTO INSURANCE ARTICLE
What is Comprehensive Car Insurance?
By: BethAnnMost everyone who drives has auto insurance. However, very few people take the time to understand how their insurance works. Understanding your policy can help you determine the most appropriate coverage for your situation and help reduce your costs while minimizing your risk. Today we'll be looking at comprehensive car insurance.
The Basics
Comprehensive car insurance covers damage to your covered automobile that is not caused by a collision with another vehicle or object. Comprehensive is a "catch all" type of physical damage insurance. As long as the damage to your vehicle is not caused by a collision with another vehicle or object and was accidental in nature, generally the damages are covered. Certain events that do meet the definition of a collision are also covered under your comprehensive coverage (such as a collision with an animal) - these are named specifically in the insuring agreement. Comprehensive car insurance also covers damages to your vehicle in the event of a theft.
Do I need comprehensive car insurance?
If your vehicle is leased or financed, generally you are required to have comprehensive car insurance. This protects the lienholder's financial interests in the vehicle should something happen to it. Furthermore, most insurance companies will not sell you collision insurance unless you purchase comprehensive car insurance as well. If you own your vehicle outright but wouldn’t be able to afford a new vehicle should something happen to your existing ride, you probably should strongly consider insuring the vehicle with both collision and comprehensive.
How much does comprehensive car insurance cost?
Costs of comprehensive car insurance vary greatly by your state, driving record, age, and the value of your vehicle. Generally, it is cheaper than collision coverage.
Where can I learn more?
Contact your insurance company or the agent who sold you the policy.
Related Links:
Car Insurance