What Is Comprehensive Car Insurance?

By Mike Anderson Posted in Car Insurance News

Most States Require It

While law in most states requires collision insurance, comprehensive auto insurance is optional unless you have financed or leased your car. With a finance or lease, the financial institution will require you to have decent comprehensive coverage.

Once you own your car, following the final payment of your auto loan, you can drop comprehensive insurance. Many times, it is a better idea to keep the comprehensive insurance to prevent costly out-of-pocket repairs.

Why Comprehensive Insurance Is Important

The importance of comprehensive auto insurance cannot be argued. Every day, people collide with deer while driving down the interstate. You cannot control an animal running in front of you, and only comprehensive car insurance would cover necessary repairs.

Those living in regions where tornadoes or strong storms frequently occur should have comprehensive insurance coverage because it will protect against fallen branches or flying objects. In snowy areas, it’s common for ice and heavy, wet snow to cause tree branches and power lines to snap and fall. Comprehensive insurance will cover damage caused by the snow too. Comprehensive auto insurance coverage does not pay for collisions with other vehicles.

Issues Comprehensive Insurance Covers

Comprehensive covers damages to your car that is caused by contact with something other than a vehicle. These include:

  • Backing into an object like a basketball hoop
  • Broken glass/cracked windshield
  • Car theft or vandalism
  • Damage to car from a shopping cart
  • Explosions
  • Fallen tree branches
  • Fires
  • Hitting an animal or bird
  • Objects falling from the sky, such as hail
  • Riots encountered while driving
  • Weather conditions like tornadoes, hail storms, hurricanes
  • Windstorms
  • Teaming up Comprehensive with Collision

    Most insurance companies pair comprehensive insurance coverage with collision coverage. This protects you against everything from a collision with another car to a rock being thrown up by a tire and cracking your windshield.

    When to Skip Comprehensive Auto Insurance

    Comprehensive insurance is optional. In most cases, you should continue to keep comprehensive auto insurance coverage on your vehicle. However, if your vehicle is old and the semi-annual premium is almost as much as your car is worth to a dealer, you’d be better off financially if you skip it. When it costs more to insure your car than you could get by selling it or trading it in for a newer car, it’s often best to live without it.

    Related posts:

    1. How Does Comprehensive Insurance On Your Car Work?
    2. Collision And Comprehensive Car Insurance; What’s The Difference?
    3. What Is Car Insurance?
    4. Which Parts Of A Car Insurance Policy Are Not Required By State Laws?
    5. What Types of Car Insurance Are There?

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