What is Comprehensive Coverage Auto Insurance?


When you first purchase a car insurance policy your agent will ask you what limits of liability you want to include. Afterwards, he or she will ask you about whether or not you want to add comprehensive and collision coverage to your vehicle. Collision coverage is pretty self explanatory – covering you for damage you cause to your own vehicle during a collision. Comprehensive coverage, on the other hand, can be a bit more complicated. So what exactly is comprehensive coverage auto insurance?

Exploring Comprehensive Coverage Auto Insurance

Comprehensive coverage, in short, is a specialized coverage that pays for damages to your vehicle caused by incidents that do not necessarily involve a collision. There are several different “risks” that are included under the umbrella of comprehensive coverage. These include:

  • Fire,
  • Theft,
  • Vandalism,
  • Hail,
  • Flood,
  • Mischief,
  • Falling Objects,
  • Explosions,
  • Earthquakes,
  • Collisions with animals (like deer), and
  • Anything else considered an uncontrollable “act of God”

Comprehensive coverage auto insurance, post 9/11, specifically excludes any damage caused by an act of terrorism. So if you were hit by a falling object caused by an explosion that was deemed to be caused by a terrorist you would not have coverage unless your company offered you the option to buy terrorism coverage at the time of purchase.

Many insurance carriers will not let you purchase collision coverage without comprehensive coverage. Others will allow you to purchase comprehensive coverage auto insurance without forcing you to buy collision coverage. If your vehicle is financed or leased, your bank will require you to carry both coverage options.

Choosing a Comprehensive Coverage Auto Insurance Deductible

When you purchase comprehensive coverage auto insurance your insurance company will ask you to choose a deductible, or the amount you will pay out of pocket first if there is a claim under the comprehensive portion of your policy. Most people choose a standard deductible of $500 per incident. Lower deductibles result in higher premiums while higher deductibles result in lower premiums. If your vehicle is financed or leased your bank may prohibit you from taking a deductible higher than $1,000.

So what is comprehensive coverage auto insurance? It’s a specialized coverage that pays for damages to your vehicle caused by circumstances completely out of your control. It’s relatively affordable, especially compared to the cost of liability and collision coverage, and is something every new car owner should consider adding to his policy.

Make sure you include comprehensive coverage auto insurance when you request your next quote from our site. We’re sure you’ll be pleased with the reasonable rates most of our carriers offer!

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