The importance of having auto insurance cannot be overstated. It contributes to your financial stability in the case of a collision, theft, or other damage to your car. Liability coverage and comprehensive coverage are the two categories of coverage available for auto insurance. We’ll examine comprehensive coverage for automobile insurance in more detail in this post.
What is Comprehensive Coverage in Car Insurance?
The damage caused by events other than crashes is covered by comprehensive insurance, sometimes known as “other than collision” insurance. Theft, vandalism, fire, natural calamities, and falling items like tree branches are a few examples of these non-collision occurrences.
Comprehensive coverage is different from collision coverage, which covers damage to your car from a collision with another car or object. In certain states, comprehensive coverage is not required by law, but collision coverage is. Yet if you have a loan or lease on your vehicle, your lender can insist that you get comprehensive insurance.
What Does Comprehensive Coverage Cover?
Several situations that may result in damage to your automobile are covered under comprehensive coverage, including:
- Theft: Comprehensive insurance will help with the expense of replacing your automobile if it is stolen.
- Vandalism: If your car is intentionally damaged by someone, comprehensive coverage will help cover the cost of repairs.
- Fire: Comprehensive coverage will aid in paying for repairs if a fire damages your automobile.
- Natural disasters: Comprehensive coverage will aid in defraying the expense of repairs if your automobile is harmed by a tornado, storm, or flood.
- Falling objects: If your car is damaged by a falling object like a tree branch, comprehensive coverage will help cover the cost of repairs.
- Animal damage: Comprehensive coverage will aid in defraying the cost of repairs if an animal—such as a deer or bird—damages your automobile.
What Does Comprehensive Coverage Not Cover?
Comprehensive coverage includes a wide range of events, but it also leaves out some details. For example:
- Collision: Comprehensive coverage does not cover damage to your car from a collision with another car or object. Collision coverage is a separate type of insurance that you can purchase to cover this type of damage.
- Mechanical breakdown: Comprehensive coverage does not cover damage to your car from mechanical breakdowns or wear and tear. This type of damage is typically covered by a car warranty or a separate type of insurance called mechanical breakdown insurance.
- Personal belongings: Comprehensive coverage does not cover damage or loss of personal belongings that are stolen from your car. In most cases, a homeowner’s or renter’s insurance policy will cover this kind of damage.
- Intentional damage: Comprehensive coverage does not cover damage to your car that is intentionally caused by you or someone else.
How Does Comprehensive Coverage Work?
If your car is damaged in an accident, you can make a claim with your insurance provider. Your insurance company’s maximum coverage will determine the amount you get.
- Liability Coverage
- Collision Coverage
- Personal Injury Protection (PIP) Coverage
- Uninsured/Underinsured Motorist Coverage
A deductible is required when you submit a claim for comprehensive coverage. You must pay the deductible before the insurance company begins paying the claim. Your policy will determine the amount of your deductible. However, a typical deductible is $100-$1000.
An adjuster will be dispatched to assess the extent of the damage to the vehicle and estimate the cost of repairs once you have submitted a claim with your insurance provider. If the cost of the repairs exceeds your deductible, you will be responsible for the whole bill. If the cost of the repairs exceeds your deductible, your insurance carrier will pay for the repairs up to the policy limitations.