Comprehensive insurance is a policy that typically helps to pay to repair or replace your automobile if it is damaged or stolen in an accident that is not a collision.
Comprehensive, sometimes also known as "all-risk" insurance, usually covers damage from fire, theft or falling objects (including a tree or hail) besides collision damage. Basically, it is designed to protect you in case something happens and you're not the sole property of someone else. A comprehensive physical damage or breakdown cover might not be the best choice for you and your situation if you own your car, since it doesn't provide coverage for the damages that happen to vehicles when they're driving or stored. Here are some of the advantages and disadvantages of this type of auto insurance policy.
Comprehensive insurance helps pay for repairs or replacement of your vehicles in the event of a covered accident that isn't your fault. The policy may also help pay for legal costs and fees, but this depends on the terms and conditions of the policy. It can also be a good choice for those who have older vehicles with expensive mechanical parts that can be very costly to repair.
If you want to see - What Is Comprehensive Insurance?
Who Should Use It
Comprehensive coverage is great for anyone whose assets include vehicles and land. If you own other cars or other property, you should consider getting comprehensive insurance to cover those items as well. For example, if you have a swimming pool on your property, you should get a separate policy to cover damages resulting from accidents in the pool. The same goes if you to own equipment like steam heaters or sprinklers that are damaged or destroyed in another car accident.
Who Should not Get It
There are some people who should avoid getting comprehensive insurance. For example, if you live in an area that has a high theft rate, this coverage probably won't be a good choice. You should also avoid getting collision coverage if you rarely take your vehicle out. Collision coverage pays for repairs or replacement of your vehicle's, but it does not help pay for replacement expenses if the vehicle is totaled. If the vehicle isn't worth that much anyways, you shouldn't have to spend money to get it back into shape.
Choosing Your Insurer
There are a few things to keep in mind when choosing your insurers. One thing is to check out the company's reputation. If a company has a lot of claims from consumers, you should probably look elsewhere.
Another thing you should do is read the terms of the policy very carefully. Some policies only cover your car in the event of an accident. This means they will cover damages caused by storms, flooding, vandalism, or anything else. You may need comprehensive insurance if you have another vehicle that needs to be repaired after an accident because it was damaged or stolen.
What About Value?
It can get confusing when people talk about value. The actual cash value of a car usually doesn't exceed the actual cash value of your home. If you are involved in a wreck and the cost to repair the vehicle exceeds the actual cash value, you could end up owing more to the other party or insurance provider than you actually paid for the car. You will also be responsible for paying for any damage caused by vandalism, which could actually exceed the actual cash value of the car.
Try To Find Several Quotes
If you want to make sure you're getting the best overall value, you should look at several quotes. Getting several quotes will help you to compare them and determine which company offers the most comprehensive insurance coverages at the best price.
This is why it is important to compare policies and terms before deciding on which policy is best for your situation. It's also a good idea to check with your current insurance provider and see if they offer any policies that can save you money. Sometimes they can provide a discount if you purchase your auto insurance from them, or if you agree to add them as a rider to another policy you already have with them.