Comprehensive Car Insurance Explained - How It Works?

Comprehensive Car Insurance Explained

Comprehensive car insurance is the type of insurance that covers the car from different damages aside from the common ones like the theft and the collision. Meaning, this kind of insurance secures you from fire, vandalism, natural disasters, animal damage among others.

Importance of Comprehensive Car Insurance

Although you may have covered your car with a collision car policy, it is essential you know that the car is not fully protected as you may not get any help in case the car gets some minor and major damages. The corrosion policy only covers the main costs such as the car crash.

But with the comprehensive policy, rest assured that your car is fully protected and you will get compensated in case of anything that happens to your car.


If you lose the car, get attacked by an animal, suffer from a natural disaster or any damage that you are not able to cater for your own expenses. In other words, the comprehensive insurance cover takes care of any damage that may occur to your car.

Does the Law Mandate Car Owners to Have Comprehensive Coverage?

“No, There is No Such Rule”

The laws governing does not force the car owners to get a comprehensive coverage but based on an individual’s needs, it is essential that you consider having the coverage. This is because some loan companies that take cars as a collateral request for such insurance coverage to ensure their safety in case anything happens when the car is in their hands.

Therefore, if you know that you may require a loan from such companies in the future having comprehensive insurance would be ideal for you. Aside from a loan, you need to consider other factors that are not predictable such as the natural calamities or even animal encounters that can happen when you are on the road.

Having insurance that protects you from the major and the minor damages is essential for you as well. So, you get to benefit more from the use of comprehensive coverage.

What is Not Included in the Comprehensive Policy?

Although this type of car insurance does cover a wide range of damages, it does not protect you from collision or even car theft. This means that if you want to ensure your car from these issues, you have to get another car insurance premium.

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Apart from this, the comprehensive plan is responsible for covering your car from other damages such as the vandalism and natural calamities destructions. But if you get into a car crash or you hit someone on the road, the comprehensive plan will not cater to those damages.

Is Comprehensive Coverage Suitable for Old Cars?

Well, the point is that the majority of people are expected to take the comprehensive policy immediately as they acquire a new car especially if it is paid off. This is because as you continue to use the car, the mileage will continue to count, and anything can happen to the car before you finish paying for it.

Therefore to make sure that the car is protected until you are able to pay the entire car loan, one is required to have both the collision and the comprehensive cover.

So, it is mainly recommended for cars that are brand new. But, if your car has good value and you opt to use it for a long time regardless of how you purchased it, you can still get a comprehensive cover for your old car. Meaning, if you paid for the car upfront and after some years you decide to get a comprehensive cover, it can still protect your car.

How is the Comprehensive Car Coverage Deducted?

Just like any other insurance cover, the comprehensive coverage comes with different deducting packages for one to choose from. Also aside from one choosing the right deductible option to work with, there are other factors that are considered such as the value of the car and the model of the car too. This means that some car owners may pay fewer coverage charges as compared to others.

Majority of the comprehensive coverage fee range between 100 to 500 dollars. Make sure to read all the terms and conditions governing each and every deductible offered by the insurance of your choice to see if they are fair to you. Also, you will need a cover that does not go beyond your budget thus the need to be keen when selecting the deductible policy to work with.

What is Comprehensive Cover Deductible?

Once the car sustains any form of damage other than a collision, as we saw earlier the comprehension cover will cater for all these damages fully except the amount of money paid for the repairs, the cost for replacement and also the deductible.

The deductible is the amount of money that you contribute after a particular time of the year in order to renew your comprehensive coverage. For example, it could be 300 or 500 dollars. Also, this is the amount that is considered when the insurance company is paying for your damaged car depending on the agreement.

If you have fully covered for damages such as glass. The insurance company will pay for all the costs that will be required for repairing the glass. But, if you have not fully covered for the damages, you will be required to chip in some amount of money and the rest will be paid by the insurance company.

Between Collision and Comprehension Deductible Which One Should Be High?

Although both of these coverages are quite important, it is advisable that you pay a higher deductible on the collision policy over the comprehension. This is because the collision policy covers the major and the most expensive damages on the car.

So, you can select a deductible of 500 dollars for collision policy and about 100 dollars for comprehension policy. One thing to note though is that some insurance companies do offer increased rates in the deductible, and you can as well adopt the new changed rates for better coverage.

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