How Does Comprehensive Insurance On Your Car Work?

By Mike Anderson Posted in Car Insurance News

What Comprehensive Insurance Covers

When you purchase comprehensive auto insurance, it is optional in many cases; you receive coverage on accidental damage to your car caused by forces of nature or other situations that do not involve colliding with another car.

Comprehensive auto insurance covers a number of situations, including:

  • Animals in the road
  • Backing into items like shopping carts or poles
  • Cracked windshield
  • Damage/scratches from children’s toys or shopping carts
  • Falling trees and branches
  • Fires and arson
  • Floods
  • Hail
  • Hitting a large bird (like a turkey or hawk)
  • Ice storms
  • Theft and vandalism
  • Tornadoes and hurricanes

With comprehensive auto insurance, you receive protection against expensive repairs from many hazards that are out of your control. You can’t stop the weather from coming and you definitely cannot prevent hitting a deer that runs out in front of your car. Comprehensive insurance covers you against damage to your car in these situations.

Leased And Financed Cars

If you lease or finance your car, you will need to have comprehensive auto insurance. The company providing the lease or financing will require you to have full coverage insurance, including collision and comprehensive. Failure to provide the correct coverage provides them with a valid reason to repossess the vehicle. When you purchase your car or sign the lease papers, you will need to provide proof of insurance before you leave the dealership with your new vehicle.

There are no state laws requiring vehicle owners and drivers to possess comprehensive auto insurance. It is completely up to you once you hold the title to your car.

When To Forgo Comprehensive Auto Insurance

If you own an older car that has little value remaining, it’s often best to pass on comprehensive auto insurance. Comprehensive does add money to your insurance policy’s premium. If your car is paid off and has depreciated in value, you may want to pass up comprehensive insurance coverage.

Many times, the premium you pay in six months is more than your car is worth. At this point, it would cost more to have your car fixed than the car is worth, and that makes it questionable if comprehensive insurance coverage is worth the financial burden.

Related posts:

  1. What Is Comprehensive Car Insurance?
  2. What Types of Car Insurance Are There?
  3. What Is Car Insurance?
  4. Collision And Comprehensive Car Insurance; What’s The Difference?
  5. What Is Third Party Car Insurance?

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