Understanding Comprehensive Insurance And What It Covers

Most states mandate drivers to have a minimum insurance coverage according to their state laws. Typically, this only refers to liability coverage and is not enough if you want to protect your own car too. In this case, you might think collision coverage is enough to cover any car accidents. But what if your car is damaged by something other than a collision? That is where comprehensive insurance comes in. Read on to learn about what comprehensive insurance is and what it covers.

What is Comprehensive Insurance?

Comprehensive insurance refers to a policy that helps to pay for the repair or replacement of your car if it is damaged in any situation that is not a collision. It is considered to be optional, but it might come in handy at a crucial moment. Sometimes, leasing agents require you to get one for your car. In any case, getting comprehensive insurance is great for fully protecting your car in any situation.

What Does Comprehensive Insurance Cover?

Comprehensive insurance covers damage to a car that is caused by factors other than a collision. This includes, but is not limited to, theft, vandalism, natural disasters, fires, hitting wildlife, falling objects, and civil disturbances. As mentioned before, it does not cover damages from collisions to your own or the other party’s car, and medical expenses.

Comprehensive Insurance Deductibles

When you buy auto insurance, you will have to set a deductible. This refers to the amount that you pay out of pocket before your insurance claim kicks in. Choosing a higher deductible can lower your premium, but you would have to pay more in the case of an accident. For example, if you choose a $500 deductible and your car is vandalized, causing $1,000 in damages, you will only have to pay $500 while your insurance will cover the remaining $500. Choosing a $1,000 deductible results in cheaper insurance, but you will have to fully pay for the damages. It might be beneficial to choose a lower deductible as you will pay less in the long term.

Comprehensive Insurance Limits

Each comprehensive insurance has a limit which is the maximum amount your insurance company will cover. For comprehensive coverage, the limit is usually the actual cash value of the car. If your car is totaled in a crash, the company will reimburse you for your car’s current depreciated value. So, if you wanted to purchase a new car, you will have to top it up with your own money. Though you should take note that the comprehensive deductible and limit are separate from the collision deductible and limit.

Get An Insurance With K&N Brokerage

Now that you understand what comprehensive insurance is and what it covers, you might be considering getting one for your car. We at K&N Brokerage offer comprehensive coverage in addition to our other auto insurance like collision coverage and personal injury protection. What if you are unsure if you should get comprehensive insurance? Contact us now and we can arrange a consultation with our car insurance specialists to determine the best type of policy you should get to make the most out of your insurance.