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What is Comprehensive Car Insurance?

comprehensive car insurance

Owning a car is something millions of people look forward to in life. In fact, simply having a car and a license is a milestone most cannot wait to hit. In order to drive legally one must not only have a driver’s license but they must also have valid insurance. It is a requirement throughout the country, no matter what state you are in, to have insurance even if it is just the minimum coverage. There are different types of car insurance and today we will look at comprehensive car insurance.


Defining Comprehensive Car Insurance

Comprehensive car insurance is not required by law. It is, however, one of the most common types of insurance car owners add to their policies. Comprehensive car insurance is different from collision coverage. Comprehensive coverage protects your vehicle from damage that is caused by anything other than a collision.


What Does Comprehensive Insurance Cover?

So, what does comprehensive insurance cover? This type of car insurance helps protect your vehicle against damage caused by fire, flood, vandalism, theft, animals (even hitting an animal with your car), falling objects (hail or tree limbs), natural disasters (hurricanes, earthquakes, windstorms and tornadoes) and civil disturbance. Comprehensive coverage is likely required by a lender if you are leasing your vehicle. It could also be required if you are financing the vehicle. If you own the vehicle outright the coverage is optional.


What Does Comprehensive Insurance Not Cover?

As you can see from above, comprehensive car insurance covers quite a bit of things that can cause damage to your car. There are things that comprehensive insurance does not cover. Those items include the following:

● Damage to someone else’s car due to a crash
● Damage to your car due to a crash
● Lost income or medical expenses for you or your passengers stemming from an accident
● Lost income or medical expenses for another person due to an accident


Varying Deductibles

Like all other insurance policies, a comprehensive insurance policy for your car has varying deductibles. You can choose the deductible for your policy. They typically range from $500-$1,500. This means that you will have to pay that amount should damage occur to your car before the insurance policy kicks in and pays the rest to make the repairs. For example, if your car is damaged due to a falling tree limb and the cost to repair the vehicle is $1,000 and you have a deductible of $500, you will pay the first $500 and the insurance company will pay the remaining $500 to make the repairs.


The Age of the Car

Many car owners will question whether or not they actually need comprehensive insurance. Even though it is an optional form of coverage it’s still an important one. Repairs for broken windows, shattered windshields, and other damage is expensive no matter the age of the vehicle. That’s why so many drivers have this type of car insurance despite it not being required by a lender or other financing institution.

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