Comprehensive insurance is an insurance policy that helps cover to repair or replace your car in case it is damaged or stolen during an accident that is not a collision. Comprehensive, sometimes also known as "all-inclusive" insurance, usually covers damages from fire, theft or fall (including wind-blown debris or falling objects). This is one of the more commonly sought after types of insurance because it offers such broad coverage and is generally quite safe, especially compared to traditional auto insurance. But there are some cons associated with this type of insurance that you should be aware of before purchasing.
If you want to see - Should You Buy Comprehensive Insurance Or Comp collision Only?
One of the main pros to comprehensive insurance coverage is that it can often offer "free" collision on your auto insurance policy. This means that if your car is damaged by an act of nature, such as a deer hit by a car or a bird strike, comprehensive coverage will take care of the repair or replacement of your car. The reason for this is that comprehensive coverage typically requires no deductible. This is great if your car is relatively inexpensive to repair or replace, but you may have to pay out of pocket if your car is significantly damaged or stolen.
Another pro to comprehensive auto insurance coverage is that it can often offer peace of mind. If you purchase this type of insurance, you know that if you are ever in an accident that you will not owe any expenses out of pocket. This is particularly important if you drive an older vehicle or are a safe driver. Good drivers can avoid accidents without spending money on auto insurance coverage, which means that they are not as risky to insure and they do not pose a financial risk to the insurance company. This can help to keep overall auto insurance costs down for safe drivers.
While comprehensive insurance covers most types of damage to your car, there are a few things that it does not cover, such as theft or vandalism. If you want to be fully covered against theft, vandalism, and accident damage, you will need to purchase full comprehensive insurance. This will give you coverage for the damages to your vehicle as well as for any medical bills that result from an accident. You will have to take out a policy that provides the coverage you want, though.
Most people only purchase comprehensive insurance when they have a new vehicle that they are paying cash for. It is usually considered a smart choice to purchase the coverage long before you have to make the payment, so that you will be covered during the entire life of the vehicle. However, if you have an old vehicle that you are paying cash for, it may still be worthwhile to buy collision coverage and comprehensive coverage, because you should not have any problems finding good prices on these policies.
One of the many pros about this type of insurance coverage is that it has a no-claims bonus. The company will cover all of the repair costs, even if you cause a claim, so long as you were driving under the influence of alcohol. Another pro is that the cost of this type of insurance coverage is very low. The insurance company will pay the same per-mile rate that you would pay if you drove ten miles per hour over a period of three hours. If you were going sixty miles per hour, the cost per mile would be much higher.
There are several cons about comprehensive insurance
The main disadvantage is that you may be sued while you are in the car. This can happen if you injure someone in the car or if you hit a fence or another vehicle. For this reason, the coverage may not cover everything, and you will have to obtain additional coverage to pay for the legal expenses. If you injure someone in your car, the other party may be able to sue you, which could mean that you have to purchase additional coverage to cover legal fees. In addition, it will cost you to purchase this coverage, so it is not a cheap way to replace your car if something happens to it.
One advantage to comprehensive insurance is that if your vehicle is stolen, they will replace it for free. If you do not have any liability insurance, your auto insurer will buy you a new vehicle to fix the damage to the old one. The only thing you have to worry about with this coverage is that the vehicle must be one that is worth more than what you currently owe on your car.
This means that if you owe more on your car than it is currently worth, you will have to buy collision coverage. Some people feel that this is an unnecessary expense, but if you have a serious accident and it was caused because you did not have enough coverage, then it could cost you thousands of dollars.