Comprehensive Car Insurance Entails
You aren’t required to have comprehensive auto insurance, but if you’re a renter, or if you used a loan to purchase your vehicle, your lender may require you to have it. This coverage will pay for damages to your car caused by a covered peril, like hail or fire.
When You Need Comprehensive Car Insurance
There are many reasons that you might need comprehensive car insurance, but one of the most important is that it can protect you from things that you cannot control, such as natural disasters or theft. While it might not seem fair to you that you have to pay out-of-pocket to repair your car if it gets damaged, a comprehensive policy can save you money in the long run.
The Cost of Comprehensive Coverage
While it can be very expensive, having comprehensive coverage can help protect you from unexpected expenses related to damage or theft. The amount you’ll pay for this type of insurance depends on a few factors, including the value of your car and its deductible.
The deductible is the amount of money that you’ll have to pay out of pocket before your insurance company pays anything for the repairs. The deductible for comprehensive insurance can range from $500 to $1500, depending on the insurer and the state where you live.
what is comprehensive car insurance
A deductible is how much you have to pay before your insurance company starts to pay on a claim, and it’s usually the first thing that you’ll pay out of pocket. Once you’ve paid your deductible, your insurance company will start to pay for the repairs or replacement of your car, up to your limits.
What Comprehensive Car Insurance Entails
When you file a claim, your insurance company will review the damage to your vehicle and figure out how much it will cost to fix. Once they know what the repairs will cost, they’ll send you a check for the estimated amount, minus your deductible. If the repairs aren’t possible, the insurance company will deem your car a total loss and issue you a check for its full value, regardless of whether you own it outright or still have a loan on it.
Definition of Comprehensive Car Insurance
In some cases, your deductible can be higher than the value of your car. This is called “total loss.”
It’s also worth noting that a high deductible can lower your premium. This is because it’s less likely that you will have to file a comprehensive claim.
What Comprehensive Car Insurance Entails
Some people decide not to get comprehensive insurance because they’re confident that they won’t have to file a claim in the future, and that their deductible will be low enough to cover any damages to their cars. This is particularly true if they’re driving an older car that doesn’t have a lot of value, and if they don’t want to have to make an out-of-pocket claim when they’re repairing their cars.
The decision to have comprehensive insurance is a personal one. It’s important to consider your budget, the value of your car, and how your car fits into your lifestyle before making a decision. This will help you determine if comprehensive insurance is right for you and if it’s worth the extra cost.