A comprehensive policy covers damages to a car from causes other than a collision. This type of car insurance covers vehicle destroyed by a tornado, vandalism, theft, or crushed by a collapsing garage. It is also known as “other than collision” coverage. If a driver is financing or leasing a car, comprehensive coverage is mandatory. However, if the driver owns a car, it’s an option on your car insurance policy. If a driver is considering getting a new or renewing their car insurance, it’s advisable to get a comprehensive coverage.
How Does Comprehensive Insurance Work
Here is an example of how a comprehensive coverage works if a driver files a claim. Suppose someone drives a car worth $10,000, with a comprehensive deductible of $1,000. In case the flood destroys the vehicle, the driver will receive $9,000 from the insurer. If the driver didn’t have comprehensive insurance, and the flood destroys the car, the collision and liability coverage will not cover the damages. So, the driver will pay the entire $10,000 loss. In addition, he will have to take a loan to buy another car or settle for a less expensive car if they don’t have the money to spend on the previous vehicle they owned.
What does Comprehensive Insurance Cover?
It covers many items in one umbrella. This includes :
• Falling trees
• Theft
• Vandalism and riots
• A natural disaster such as storms, flood or earthquake
• Hitting an animal
Why consider a Comprehensive Coverage?
There are many risks of not purchasing comprehensive coverage. Is your savings enough to cover the cost of repairing a car after an accident? Here are some of the reasons why you should consider getting comprehensive coverage.
• Owning a high-value car
• Living in an area prone to weather disaster
• If there are insecurity and theft where you live
• How much you can afford to pay if you have an accident that is not covered by insurance
Does Comprehensive coverage have a deductible?
Like most types of coverage, comprehensive car coverage has a deductible, As a result, the driver chooses how much deductible he can pay when purchasing a policy.
A deductible is the amount of money the driver pays for any repairs before the insurance becomes active. For example, the driver lives in Toronto and has a $250 deductible. Then one day, a tree falls on the car and causes a massive dent in the hood, the damage costs the driver $1,000 to repair. The driver will pay the $250 deductible, and the insurance company will cover the rest —up to the limit. The overall rule is, the more significant the deductible, the lower premium paid. Hence, we can, consider picking up a higher deductible and save money on the monthly insurance payment.
Although this coverage is optional, it’s an insurance policy that can help the driver repair or replace the car. Know your cars worth to decide whether buying comprehensive car insurance is worthy or not. It’s essential to research before choosing a car insurance policy. Compare the insurance rates to get the plan that perfectly fits your needs. After purchasing the insurance coverage, continue shopping regularly to make sure you still have the best deal for you.