Comprehensive coverage is complete coverage for a vehicle that enables drivers to pay for the repair of their stolen or totaled car. However, this damage should have been caused due to any reason other than a collision.
Comprehensive coverage generally covers robbery and destruction from natural tragedies, fallen objects, fire, storms, hail, floods, or animals. But if the driver missed the animal and hit any object, for example, a wall or tree, then comprehensive coverage would not be responsible for this type of loss. If a driver charters or finances their vehicle, their financer may expect them to hold comprehensive coverage until their loan is paid off. The driver cannot get comprehensive coverage if they applied for a loan for their car.
How Does Comprehensive Coverage Work?
Comprehensive coverage is optional for a car insurance strategy if the car is under possession. Not everyone has the money to repair their car if it is destroyed in a fire or if an animal hits it. In these circumstances, comprehensive coverage may help pay for expensive repairs, depending on the driver’s coverage limits.
The limit is the ultimate amount a driver’s insurer will spend for a covered request. The limit for comprehensive coverage is usually the depreciated cost or the original cash value of the vehicle.
For example, if an insured car is damaged, the driver’s insurer would pay them for the car’s actual cash value. If they want to replace their totaled car with a new vehicle that costs more than their insurance reimbursement, they would have to pay the balance out of their pocket.
Another critical factor to remember about comprehensive coverage is that it has a deductible. The driver pays off a covered request to clear the deductible. The driver decides their deductible when they purchase comprehensive coverage. For instance, if a deer hits a car, the damage to the car is worth $4000 and the deductible is $1000, the driver will get $3000 from their financier after the claim. Comprehensive coverage will not take care of medical bills. This insurance is also not responsible for the damage if the driver is uninsured or underinsured.
Here are some examples of what comprehensive coverage covers:
- A natural disaster destroys a car
- The car is stolen by a thief
- The vehicle catches fire
- A heavy object falls on the car
Difference Between Comprehensive and Collision Coverage
Comprehensive coverage covers anything that arises outside of a driver’s supervision or control.
Another factor to consider is the likelihood of the claim affecting the driver’s insurance rate. If the driver makes a collision claim, they will likely see their insurance rate increase. A comprehensive claim is less likely to clear driver’s insurance, as the collision could be tied back to them. Filing a police report and noting information is a helpful idea for a driver’s protection and safety.
Endnote
Comprehensive coverage is the best choice for vehicle coverage. It helps drivers get the highest coverage for their cars to drive securely and confidently.