Comprehensive Insurance Coverage – Explained

What is a Comprehensive Insurance Coverage?

A Comprehensive Insurance Coverage is a kind of coverage which can help you pay to repair your car or vehicle if it’s damaged in an incident that was not a collision or can even help you pay for a new one if your vehicle gets stolen. Comprehensive Insurance Coverage generally covers damage from fire, vandalism or falling objects like a tree, hail or even an asteroid. If you are planning to finance or lease your car, your lender would possibly require Comprehensive Insurance Coverage. If your vehicle is under your ownership completely, Comprehensive Insurance Coverage could be an optional coverage on your car insurance policy.

WHAT IS COVERED IN A COMPREHENSIVE INSURANCE COVERAGE?

Comprehensive Insurance Coverage or Comprehensive car insurance policy cover can help you cover damage to your car that’s not the result of a collision or an accident, such as:

  • Theft or stolen.
  • Vandalism.
  • Damage due to Fire.
  • Natural disasters like a hurricane, a tornado or a storm.
  • Falling objects like trees, hail, asteroids etc.
  • Damage was done to your car by animals.
  • A civil disturbance or mob nuisance like a riot that results in damage or destruction of your car.

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Does comprehensive insurance cover flood damage?

This question has been asked a number of times, that does comprehensive insurance cover flood damage. We would like to give a good news to all our readers that YES, comprehensive insurance cover does cover flood damage also. 

flood can easily damage your car and the only way to get your insurance company to pay for the repairs or for a total loss of your vehicle is to carry comprehensive coverage on your policy. A comprehensive insurance which covers flood damage or flood insurance can be crucial if you live in a high-risk flood zone.

This will give you additional peace of mind that all such natural disasters and calamities.

WHAT’S NOT COVERED IN A COMPREHENSIVE INSURANCE COVERAGE?

Just like a lot of things which are covered in Comprehensive Insurance Coverage or Comprehensive car insurance policy cover, there are a lot of other things which are not being covered in Comprehensive Insurance Coverage or Comprehensive car insurance policy cover. Hence, one also take a look at all such points which are not covered or are out of coverage from a Comprehensive Insurance Coverage or Comprehensive car insurance policy. Given below are few such points.

  • All the damage caused to your car from a collision or an accident caused by a human mistake.
  • All the damage caused to another person’s vehicle from a collision or an accident.
  • Your or your accompanied passengers’ medical expenses after an accident or a collision.

Is there a difference between Comprehensive Insurance Coverage and full Insurance Coverage?

Though there is an important difference between Comprehensive Insurance Coverage and full Insurance Coverage, still some people mistakenly use these terms interchangeably. The difference between Comprehensive Insurance Coverage and full Insurance Coverage is that most insurance providers do not offer anything called “full insurance coverage.” In other words, there does not exist any auto insurance policy that covers everything.

As mentioned, Comprehensive Coverage is an optional coverage that can be added to your insurance liable to state-required policies which provide an additional protection for accidents, which are not caused by any accident or collision. Instead of having a single super policy or just a collision insurance policy, you can pair different types of insurance coverage plans together. Learn more about Comprehensive Coverage and get a quote for yourself today so that you can build a custom policy that’s appropriate for you.

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Why should I adopt Comprehensive Insurance Coverage?

With Comprehensive Insurance Coverage or a Comprehensive Car Insurance Coverage or collision insurance policy, you can claim from your insurance provider for any accidents that are considered to be your fault.

Comprehensive Insurance Coverage claim also applies when your fault cannot be proven. For example, if you return to your car after shopping to find that someone has hit you and driven off.

Without Comprehensive Insurance Coverage policy, you might risk having to pay for expensive repair works with your own pocket. Worse than that, if your car gets written off, then you will have to pay for a brand-new motor.

A Comprehensive Coverage policy gives you that extra protection and peace of mind, that you won’t have to necessarily pay for expensive repair works – just your compulsory and voluntary excess.

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Is Comprehensive Insurance Policy more expensive than other policy types?

You’d be forgiven for thinking that a comprehensive Car insurance policy is always more expensive than a third-party collision insurance cover only, or third-party, fire and theft.

This is a general case, but not always. So when comparing different policies, it is worth looking at the difference in prices between comprehensive coverage and third-party collision insurance policies.

You may figure out later that comprehensive insurance policy actually works out cheaper as compared to a third-party car insurance policy. We won’t advise you to compromise on your Comprehensive insurance cover just to save a few dollars.

Comprehensive Insurance Coverage policy quick facts:

  • If you lease or finance your car, your lender might require you to add comprehensive.
  • 73% of drivers add comprehensive car insurance coverage.
  • On average, comprehensive car insurance coverage costs about $22 per month as it’s monthly premium.
  • Most common deductible price chosen by people generally is about $500.

Conclusion:-

Comprehensive insurance or Comprehensive car insurance coverage has a limit, or the maximum amount your policy will pay toward a covered claim. The limit on the comprehensive insurance policy is usually the actual cash value of your vehicle.

If your car is stolen, for example, then your Comprehensive Insurance coverage policy would reimburse you for your car’s depreciated value. In other words, if you wish to replace your stolen vehicle with a newer model, you are most likely have to use some of your own money to do so, in addition with the money given as the reimbursement from your insurance provider.

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