Comprehensive Auto Insurance: What is it and what does it cover?

Although there are millions of vehicles on the road and liability insurance – even a minimum amount -- is required to be driving, deciding what type of insurance you should have can be a little confusing. After all, you know you want your vehicle fixed if something happens, yet you may not realize that just having liability coverage won’t do anything to get your car repaired if it is damaged by hail or fire. Comprehensive insurance may be the option you need.

A Look at Comprehensive Plans

There are so many things that can happen to your vehicle, each of which can leave you in a real bind if you don’t have enough insurance coverage. Do you know if your vehicle would be covered if it is damaged by an earthquake, hail or a wildfire? If not, it may be time to examine your policy and opt for an upgrade to make sure you have comprehensive.

Comprehensive auto insurance is a policy that includes almost everything that could happen to your vehicle, outside of a collision, which is covered by the collision portion of your policy. While comprehensive plans are more expensive than liability ones, it is because you are covered in so many areas.

According to the Insurance Information Institute, comprehensive auto insurance is usually has a one hundred to three hundred dollar deductible. However, if you still want the coverage that this type of plan provides and cannot afford the higher premiums, there is a middle ground. You can usually opt for a higher deductible, which should bring the premiums to a more budget-friendly rate.

What it Covers and Who Needs It

Comprehensive insurance policies cover many of the things you may think of, such as theft, but they also cover those you probably haven’t considered, such as vandalism and windshield damage. Some policies also provide for coverage of medical, lost salary and funeral expenses.

You may want to consider having this type of policy if your car is worth more than $4,000 or you still owe money on it. Additionally, those leasing their vehicle will usually need to have a comprehensive policy.

Saving Money, Peace of Mind

In our current economy there are many people opting to cancel or downgrade their insurance policies. While it seems like a good money-saving idea in theory, it can create a host of problems if something happens, which may leave you with a stack of bills and unreliable transportation.

To save money on a comprehensive policy, start by gathering quotes from a few insurance companies. Be sure to compare what is covered with each policy offered. Consider taking a higher deductible if necessary. While you may not need it now, you will be glad you have the policy in place should something ever happen.