What is Auto Insurance Comprehensive Coverage?
Auto insurance comprehensive coverage is similar to collision insurance. But unlike collision insurance which protects you in the event of an accident in which you were a fault, comprehensive auto insurance covers damage to your vehicle which has been caused by any unknown party or an 'act of God'.
If your vehicle is covered under an auto insurance comprehensive coverage policy you are protected against (for example) vandalism, flood damage, hurricanes, theft, and fire. These events are instances over which you are not likely to have control and are thus not covered under other policies.
All auto insurance comprehensive coverage policies are different so make sure to find out the exact details before you sign up for comprehensive cover. In much the same way as collision automobile insurance, comprehensive insurance will pay up to the fair market value of your vehicle minus your deductible. This means that any damage to your car must exceed a deductible amount if you want the insurer to pay you for your losses.
Deductibles for auto insurance comprehensive coverage are usually available in a variety of amounts but in general the higher the deductible, the lower the coverage premiums.
Auto insurance comprehensive coverage is not a required policy in terms of state law but if you are applying for financing for your vehicle it may well be required. Like collision insurance, auto insurance comprehensive coverage is one place where you can cut costs.
Sitting in the comfort of your living room a fire or flash flood no doubt seems highly unlikely. However each year in the United States drivers are caught in similar disasters. Auto insurance comprehensive coverage may be recommended if you live in a climate that is vulnerable to heavy rains, wildlife damage or theft and vandalism. Don't be sorry tomorrow for what you didn't do today!
