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Comprehensive Car insurance – What You Need to Know

Comprehensive car insurance is an optional insurance policy available to all customers who are shopping for auto insurance. This type of insurance policy is optional for customers who own their vehicle, although if you decided to lease or finance your vehicle you may be required by your lender to purchase this type of insurance coverage.

This type of insurance has you covered in the instance your vehicle is damaged outside of a car accident. Due to the nature of the coverage, many customers decide that it is not something they should opt for this coverage since they do not see any value for it. Although without a thorough understanding of this insurance policy you may put yourself in a compromising position not purchasing this insurance policy while trying to save money on your insurance premiums.

When you apply for this coverage, your insurance company would need to determine if your vehicle is eligible. This is determined on the actual cash value of your vehicle. After determining the actual cash value of your vehicle you would be able to decide if this policy is something you would need or could pass on.

Why it would be a Great Buy

Suppose you have a brand new Lamborghini and you are enjoying in the city of Miami. One day there was a huge flooding that caused your vehicle to go under and just get swamped. Would you be willing to cover the damages out of pocket or have your insurance company cover it? In this typical scenario, I would defiantly recommend that you purchase this coverage for your vehicle saving you the trouble of any upfront costs.

Why wouldn’t it be a Great Buy?

If you own an older vehicle where the actual cash value isn’t as high and you are eligible to afford a new vehicle from lease or finance, you can potentially decline the insurance policy since the actual cash value is not significantly high. Although when it is time for you to purchase a newer vehicle, it is recommended that you purchase comprehensive insurance for your vehicle.

What it Covers

Before you jump to conclusion and decide against this insurance coverage, from our perspective the pros do outweigh the cons and something you should definitely consider. The circumstances may seem slim for this type of insurance coverage, although if a situation arrives where you would need to use it, it could be a lifesaver to you. Here is what you`d be covered for:

  • Vehicle Theft
  • Vandalism
  • Fire Damage
  • Inclement Weather Damage
  • Flooding
  • Stolen Wheels and Rims
  • Car Damage (keying, shattering glass)
  • And More

Comprehensive coverage is subjective to your insurance company and polices can be different. Please contact your insurance company for accurate details.

To a smart shopper, understanding what you are getting from this policy is of course a great asset. Based on your living conditions and any potential severe weather conditions that can take place in your state (i.e Florida hurricanes) this insurance policy may be applicable and is something that will save you a hefty upfront cost for repairs.

What it doesn’t cover

Knowing what you are covered for is a great benefit, although understanding what you will not be covered can save you a headache and give you a background of where to start when you structure your insurance policy.

  • Roadside Assistance
  • Property Stolen

Here is an Example

Suppose your car was parked outside and a tree, out of nowhere, damages the roof and crushes your vehicle.

The damage totals $30,000 for repair. You make your deducible of $5000, your insurance company will pay the remaining $25,000. Although if the damages pass the ACV of your vehicle it will be written as a total loss by your insurance company. With the money that you were reimbursed with, you decide to get a newer make and model based on the amount given you may have to out of pocket some money to cover the difference.

Summary

This insurance policy is a great option to make sure your vehicle is covered under all scenarios. Check out these insurance companies and see what their comprehensive car insurance policy covers for your vehicle.

All the information listed above has only been intended for informational purposes only. Please consult an actual insurance agent for accurate and more detailed information. To speak to a local insurance agency please click here now.