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Getting Educated About Comprehensive Auto Insurance

Jan. 30, 2015
Auto Insurance, Insurance
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By Raphael Locsin

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Comprehensive auto insurance takes care of damage to your vehicle that results from something besides accidents involving other vehicles. Situations in which you would call on comprehensive insurance include:

  • Your vehicle is stolen.
  • You vehicle is damaged by flooding or hail or by a natural disaster such as a hurricane, earthquake or tornado.
  • Someone has vandalized your vehicle.
  • Your vehicle is damaged by a fire.
  • Your vehicle is damaged in a collision with an animal.

Comprehensive coverage might not be required, but many people opt to add it to their auto insurance policy. It’s especially popular with people driving newer or expensive cars, who find that comprehensive coverage is well worth the added expense. Drivers with less-than-new and low- to moderately priced cars may not see the point in making their rates go up, so they skip comprehensive coverage.

Comprehensive protection acts as a security blanket because you never know when disaster can strike. People who live in places prone to severe weather or natural disasters will find comprehensive coverage a necessity. When putting your policy together, make sure that you read the fine print to make sure that everything you want your comprehensive coverage to take care of is present.

Comprehensive coverage advice and recommendations

If you are having a difficult time deciding whether you want or need comprehensive coverage on your auto insurance policy, here is some advice from the professionals.

  • If you have a vehicle that is financed or leased, comprehensive coverage may be required. When you’re still paying off a car loan, the lender has a financial interest in keeping the car in good condition, and with a lease, the car still belongs to the lessor. Check your state laws and your loan or lease contract to find out if this applies to you.
  • If you have a newer model car, it is probably worth getting comprehensive coverage.
  • If you have a vehicle that is older, comprehensive coverage is not something that is very important in most cases. The only older car that would benefit from comprehensive coverage is one that is a classic or collectible.

Take the above into consideration, and you will have an easier time deciding whether you need comprehensive coverage.