Auto Insurance

What is Comprehensive Insurance for Cars?

What is Comprehensive Insurance for Cars?

Comprehensive auto insurance for cars is a class of insurance that protects against physical damage to your auto, and is frequently referred to as “other than collision” (OTC) coverage, or basically “complete”. The comprehensive coverage of a car insurance policy can be somewhat baffling – so let’s take a peek and explain it in a straightforward to comprehend way.

Vehicle insurance has two central components – the liability coverage and physical damage coverage. Liability insurance coverage which is mandatory in nearly all states, also known as bodily injury liability and provides coverage in the occurance of personal injury or death where you are at fault. Physical damage coverage, which is normally voluntary, covers the expense of repair (less the deductible) on your auto as a consequence of any action or circumstance that is included in the insurance policy.

Contained in the physical damage coverage section – there are two different and distinctive types of insurance coverage – collision and comprehensive. Collision covers physical damage to your automobile if your auto is smashed in an collision. When the auto collides with a different object like a guard rail and rolls over, your collision coverage will take care of the repairs. On the other hand, a collision with some creature such as a deer are not included in collision, but it is covered under the comprehensive portion of the policy.  Comprehensive covers physical damage outside the scope of what is covered in the collision portion of the policy.

What is Comprehensive Insurance for Cars?

A lot of folks erroneously interpret the phrase “extended coverage” to denote that they are insured for any damage to their cars. This is not the case. Comprehensive insurance coverage pays solely the cost to correct the damage caused as a result of non-collision damage. If you lack collision coverage, you windup paying for damages incurred in an accident.

You should also should know that the comprehensive coverage takes care of the cost of fixing or replacing the car only, and no coverage or reimbursement for personal belongings in the car that were ruined or stolen. If you have an expensive car stereo, for example, you will want to get a different insurance policy that covers personal property. In addition, comprehensive insurances does not extend coverage  relating to damage caused by normal wear and tear.

Here’s what comprehensive auto insurance covers

* Fire
* Theft
* Hail, water or flood
* Vandalism
* Wind
* Damage caused by an animal
* Glass breaking
* Missiles or falling objects (the word missiles do not relate to the military context – referring instead to any flying object that hits your car)

Comprehensive coverage does not insure for theft or damage caused by family members or employees. Some policies may perhaps insure you when you drive a vehicle other than your own (be aware this coverage normally have reduced coverage benefits). It is critical to understand the policy thoroughly to make sure you know what’s included and what is not covered.

Can you simply acquire comprehensive coverage and no collision coverage? Some insurance companies will in fact allow this to be the case in some situations. Most insurance companies, will not allow you to buy collision coverage without comprehensive coverage.

What is Comprehensive Insurance for Cars?

As with any component of auto insurance, costs are determined by these factors: the age of a driver, a drivers experience, the value of the vehicle, where the car will be driven and the expected yearly mileage. It’s important to always compare estimates from quality car insurance companies online to get the lowest cost insurance for your situation.

Weighing the premiums of the insurance compared to the value of the auto will give you an idea if it is cost effective to have this type of coverage at all. Comprehensive and collision coverage always have a deductible, which can be as inexpensive as $ 200 and as costly as   $ 1500. More deductible equals a lower insurance premium.

Who should have comprehensive coverage?

Well, comprehensive coverage is not required by any state. States are more focused on folks having the liability coverage. Nevertheless, if your auto is financed or leased – the loan company will always mandate that you have physical damage coverage through a comprehensive policy.

For older model cars you might think about not including collision and comprehensive insurance because coverage is restricted to the true market cash value of the car. That’s a decision only you can make.

For the best quotes from the top companies that service your area at no cost, simply input your zip code at the top of this page, select the type of insurance you’re seeking and begin the quoting process.  It doesn’t take long, is easy and can be done at your convenience.

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