The law states in most jurisdictions that the minimum insurance you can carry on your car is liability insurance, however if you want to be further protected against the slings and arrows that life can fire at your car, then comprehensive car insurance is the way to go.
Comprehensive insurance is not required by any state, but is normally a good idea especially if your car is of high-value or is being financed by your bank. Sometimes, the lien holder on your car will require additional insurance coverage beyond liability in order to further protect their investment.
Comprehensive car insurance is also known as “other than collision,” “comp” or “OTC” insurance. All car insurance companies offer comprehensive coverage. Even though it is considerably more expensive than just getting the minimum liability insurance, it’s definitely worth it if you should discover yourself involved in a situation in which the extra coverage is needed. Like the shields of the knights of old, comprehensive insurance can protect you from those slings and arrows that life can sometimes throw at you.
Although comprehensive insurance is a higher level of insurance than liability insurance, it does not completely protect your car. For example, collision insurance is a separate type of auto insurance, protecting you should another vehicle strike your car or if your car should strike another vehicle or object. Some insurance companies may not allow you to purchase comprehensive insurance without first having collision insurance as a part of your policy.
In order to fully protect your car from as many of those slings and arrows as possible you will most likely want to consider getting comprehensive insurance as well as collision insurance. This will protect your beloved auto from both acts of nature as well as accidents and the malicious actions of other people.
What does comprehensive insurance typically cover then? For one, it covers many so-called “acts of God,” such as fire, flood damage or other damage from severe weather. Liability and collision insurance, for example, will not normally cover hail damage or damage from flying debris during a tornado.
In addition to covering damage from weather-related effects, comprehensive insurance commonly covers damage to, or loss of, your car from the actions of other people in the form of theft or vandalism. Many people may think that they will never be the victim of car theft, but a car is stolen in the United States almost every 26 seconds, so it’s definitely something to factor in when deciding whether or not you should adopt this enhanced insurance.
Aside from protecting from loss by weather and the actions of malicious other people, comprehensive insurance also covers damage to the glass of your vehicle as well as damage caused by hitting an animal. If you accidentally hit a bird and crack your windshield, or a piece of debris falls from a bridge above and damages your car, you will be glad to have this extra bit of protection.
If you do not have comprehensive insurance and any of the above things happen, it will most likely be something that you will have to pay for 100%, unless someone else can be found to be liable for the damages. Unfortunately, many car thieves and are never caught and brought to trial and even fewer car vandals are discovered. And, of course weather and animals cannot be held liable in most jurisdictions.
In general, the monthly premium cost of coverage comprehensive insurance is related to the deductible you have to pay. Many insurance companies allow you to decide how much of a deductible you would like to pay, with a higher deductible meaning a lower monthly cost. Inversely, if you decide on a low deductible, your monthly cost will likely be much higher. Additionally, if your car loan is still being paid off, it would be a good idea to discuss with the lien holder to see what their requirements are as far as the deductible is concerned; some might require a lower deductible.
The deductible is the amount of money that you must first pay before the insurance will begin to pay benefits relating to your claim. For example, if you have a $300 deductible, and the car is damaged for an estimated $1300 worth of damage, you will have to pay $300 straight up, and the remaining $1000 will be subject to the rates at which your insurance will pay. In some cases, the deductible is per incident, meaning that each time you file a separate claim, the deductible will need to be paid once again.
In addition, some comprehensive coverage will only pay a portion, say 80%, of the damages. Supposing your insurance covers 80% and you had $1000 in damages left over after your deductible was met, your insurance company would pay $800 and you would still owe another $200.
It’s best to discuss with your insurance agent all of the ins and outs of deductibles and co-pays; make sure you understand exactly what you will be responsible for so that you don’t end up with a surprise if and when you do have to file a claim on your insurance as the specifics can vary from company to company.
One thing to consider is whether you actually need comprehensive car insurance. If your car is of a high value or is still being financed by your bank, it is most certainly within your best interest to obtain comprehensive insurance.
On the other hand, if your car has no lien or has been paid off, and is not a high value vehicle, you can probably skip it. Knowing the value of your car can help you decide how much, if anything, you should pay for comprehensive coverage. You can have your car appraised or look up the value in the Kelley Blue Book to determine the approximate value of your vehicle. Unless your care is being financed, it is ultimately your decision as to whether you should shell out for comprehensive insurance.
Comprehensive insurance is not required by any state, but is normally a good idea especially if your car is of high-value or is being financed by your bank. Sometimes, the lien holder on your car will require additional insurance coverage beyond liability in order to further protect their investment.
Comprehensive car insurance is also known as “other than collision,” “comp” or “OTC” insurance. All car insurance companies offer comprehensive coverage. Even though it is considerably more expensive than just getting the minimum liability insurance, it’s definitely worth it if you should discover yourself involved in a situation in which the extra coverage is needed. Like the shields of the knights of old, comprehensive insurance can protect you from those slings and arrows that life can sometimes throw at you.
Although comprehensive insurance is a higher level of insurance than liability insurance, it does not completely protect your car. For example, collision insurance is a separate type of auto insurance, protecting you should another vehicle strike your car or if your car should strike another vehicle or object. Some insurance companies may not allow you to purchase comprehensive insurance without first having collision insurance as a part of your policy.
In order to fully protect your car from as many of those slings and arrows as possible you will most likely want to consider getting comprehensive insurance as well as collision insurance. This will protect your beloved auto from both acts of nature as well as accidents and the malicious actions of other people.
What does comprehensive insurance typically cover then? For one, it covers many so-called “acts of God,” such as fire, flood damage or other damage from severe weather. Liability and collision insurance, for example, will not normally cover hail damage or damage from flying debris during a tornado.
In addition to covering damage from weather-related effects, comprehensive insurance commonly covers damage to, or loss of, your car from the actions of other people in the form of theft or vandalism. Many people may think that they will never be the victim of car theft, but a car is stolen in the United States almost every 26 seconds, so it’s definitely something to factor in when deciding whether or not you should adopt this enhanced insurance.
Aside from protecting from loss by weather and the actions of malicious other people, comprehensive insurance also covers damage to the glass of your vehicle as well as damage caused by hitting an animal. If you accidentally hit a bird and crack your windshield, or a piece of debris falls from a bridge above and damages your car, you will be glad to have this extra bit of protection.
If you do not have comprehensive insurance and any of the above things happen, it will most likely be something that you will have to pay for 100%, unless someone else can be found to be liable for the damages. Unfortunately, many car thieves and are never caught and brought to trial and even fewer car vandals are discovered. And, of course weather and animals cannot be held liable in most jurisdictions.
In general, the monthly premium cost of coverage comprehensive insurance is related to the deductible you have to pay. Many insurance companies allow you to decide how much of a deductible you would like to pay, with a higher deductible meaning a lower monthly cost. Inversely, if you decide on a low deductible, your monthly cost will likely be much higher. Additionally, if your car loan is still being paid off, it would be a good idea to discuss with the lien holder to see what their requirements are as far as the deductible is concerned; some might require a lower deductible.
The deductible is the amount of money that you must first pay before the insurance will begin to pay benefits relating to your claim. For example, if you have a $300 deductible, and the car is damaged for an estimated $1300 worth of damage, you will have to pay $300 straight up, and the remaining $1000 will be subject to the rates at which your insurance will pay. In some cases, the deductible is per incident, meaning that each time you file a separate claim, the deductible will need to be paid once again.
In addition, some comprehensive coverage will only pay a portion, say 80%, of the damages. Supposing your insurance covers 80% and you had $1000 in damages left over after your deductible was met, your insurance company would pay $800 and you would still owe another $200.
It’s best to discuss with your insurance agent all of the ins and outs of deductibles and co-pays; make sure you understand exactly what you will be responsible for so that you don’t end up with a surprise if and when you do have to file a claim on your insurance as the specifics can vary from company to company.
One thing to consider is whether you actually need comprehensive car insurance. If your car is of a high value or is still being financed by your bank, it is most certainly within your best interest to obtain comprehensive insurance.
On the other hand, if your car has no lien or has been paid off, and is not a high value vehicle, you can probably skip it. Knowing the value of your car can help you decide how much, if anything, you should pay for comprehensive coverage. You can have your car appraised or look up the value in the Kelley Blue Book to determine the approximate value of your vehicle. Unless your care is being financed, it is ultimately your decision as to whether you should shell out for comprehensive insurance.
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