Comprehensive Car Insurance
Comprehensive car insurance is applicable when your car is damaged by events which do not fall under the category of auto collisions. Comprehensive insurance covers your car in situations like auto theft, auto vandalism, damage due to flood, fire, cracked and broken windshields, damage due to fallen trees, objects or from an animal, and weather damage such as hail.
As is typical of all kinds of car insurance, comprehensive coverage is purchased to compensate for the cost of repair. Though often regarded as optional insurance, it is advisable that you reconsider declining comprehensive coverage. Some car owners choose not to go in for this, but only collision insurance, with an eye on lowering their insurance bill. However, it needs to be kept in mind that repair costs can add up fast and result in quite a huge amount. Your airbag could get stolen and replacing it could cost up to $1,000; or a rock could crack or break your windshield, calling for an expensive replacement. When you have comprehensive coverage as part of your car insurance policy, the money you would have to shell out for a repair would be only the amount of the deductible on your comprehensive coverage. For example, if your car gets hit by a falling tree, the repairs would easily cost you more than $2,500.
With the comprehensive car insurance coverage in place and a $500 deductible, your out-of-pocket expenses would not exceed $500, as opposed to the $2,500 you would have to spend without comprehensive coverage. For those who would like to save money on their insurance bill, it would make better sense to go in for comprehensive coverage but with an increased deductible, which would reduce the cost of the coverage.
Comprehensive coverage should be considered essential if your car is new, expensive, is parked overnight in a rough neighborhood, is parked regularly in areas where damage is possible, like under trees and close to a playground or a golf course. You must also consider this coverage if you drive in areas known for windshield cracking, floods or hailstorms, or on highways where there is a possibility of rocks chipping or cracking your car’s windshield. However, if your car is more than ten years old or is in extremely poor condition, only then would it make sense to avoid this coverage. Comprehensive car insurance covers the costs to repair common damages; it may also be mandatory if you finance or lease your car.