A comprehensive insurance policy is a type of auto insurance that pays for damage done to your car besides bodily injury.
What exactly does comprehensive insurance cover?
It covers, for damages caused to your car apart from bodily injury. So if your car gets stolen, your comprehensive insurance will reimburse you for the full replacement cost. Your comprehensive insurance also helps to cover for damages caused due to vandalism, theft or natural disasters such as tornadoes or hurricanes. Certain things like the theft of your car can affect your ability to get a job, your reputation or even your life.
Comprehensive insurance has many advantages compared to just general auto insurance. It provides coverage for damages caused to the other vehicle and property, and any passengers who may be riding in your car. It also covers for any medical expenses that may arise out of an accident. It should be noted, however, that it does not pay for damages incurred in a collision.
If you want to see - Should You Buy Comprehensive Insurance Or Comp collision Only?
Some states are exempted from certain requirements to obtain auto insurance. For example, in some states, it is mandatory to have uninsured motorist coverage. This will help cover any medical expenses resulting from injuries to someone other than yourself that happens in a vehicular accident. It is also advisable to get more than one type of auto coverage.
Your comprehensive insurance coverage kicks in after you purchase a new car. Generally speaking, it only covers for the physical damages caused to your car and property. It does not help to cover any legal costs incurred as a result of a vehicular accident. However, you may need to get an additional policy including legal costs and damages caused to another person or his/her property. It is always better to have more than one type of coverage to help cover the multiple expenses that are likely to occur with a collision.
The full coverage policy will provide for both physical and legal expenses as a result of an accident. It will also help cover for any damages caused to your vehicle. Typically the amount you will be insured for is the total of the payment for repairs minus your deductible. The lower the amount of coverage on your auto insurance policy, the less you will be protected.
The amount of deductible that you have will affect what your comprehensive coverage may pay for. The higher the amount of deductible, the less protection you will receive. This can make sense in the event of a theft. Let's face it; if it is your car that is stolen, the thief will likely target the car that has the most money invested in it. A low-priced, low-secured vehicle that is left sitting in a parking lot will have a much greater chance of being stolen than a high-priced, very secure vehicle. This will help protect you in the event of a theft.
The third type of comprehensive insurance is a liability. Liability only covers the other car that was damaged during the accident. It does not help you pay for the cost of repair to your vehicle. This may make sense if you only have damages to one vehicle, but it can make a big difference if another car is damaged or stolen during the crash. For instance, if you hit a deer and the deer got away, you may be liable for its damages since it is your fault. However, if another car was damaged in the collision, you would need to file a claim with your auto insurance company to recover the loss from the other car.
Depending on your needs and circumstances, you will want to determine what level of comprehensive insurance you need. Most people feel that they only need auto liability insurance to pay for the repairs to their car and the costs of the damages to another car if it was damaged or stolen.
However, you may find that your state requires a higher deductible in order to protect you financially in the event of an accident. Also, the amount of deductible may differ from state to state. Checking with your auto insurance agent is the best way to get a complete understanding of your insurance requirements. Since each state has different minimums for auto insurance, having an expert car insurance broker can make the process of finding the right level of coverage much easier.