I was recently in a situation where my brand-new car was keyed in a parking lot. Upset, I called my insurance company to learn of my options. I was told that this act of vandalism was covered under my insurance as a comprehensive coverage, which had me thinking – what is comprehensive coverage?
What is Comprehensive Coverage for Automobiles?
Comprehensive auto coverage covers many incidents that don’t involve a collision (typically associated with damage by unexpected situations). You may hear some of these instances being referred to as “perils.”
Perils are typically defined as dangers such as fire and lightning, theft or attempted theft, windstorm, earthquake, hail, explosion, riot or civil unrest, falling aircraft or parts of an aircraft; as well as windshield damage and other damage to your car due to theft, vandalism, fire, falling objects, lightning, explosion, or impact with an animal.
If you’re financing or leasing your car, your lender likely requires comprehensive coverage. If you own your car outright, it can be an option on your car insurance policy.
Comprehensive Coverage Deductible
Your deductible is the portion of the claim you pay. For example, if you have an accident which causes $2,000 in damage to your car and you have a $500 deductible, you will pay the first $500 and your insurer would pay the remaining $1,500.
Choosing a higher comprehensive deductible (options typically include $500, $1,000, $1,500) generally means your premiums may be lower, however choosing a lower deductible means that the amount you pay in repairing your car may be higher.
How Does Comprehensive Coverage Differ From Collison Coverage?
Collision coverage is just that – coverage if you’re in a collision. Collision coverage is defined as, for example, when your car flips over on the road and is damaged, or you’re driving on an icy road and lose control and damage your car.
Essentially, this coverage pays for damage to your car caused by a collision with another car or other object.
To learn more about comprehensive coverage, be sure to speak with a local agent who’s able to assist you.
Disclaimer: This information has been provided for your convenience only and should not be construed as providing legal or insurance advice.