What is Comprehensive Insurance?
There are many factors you need to consider when you are looking at your auto insurance. We tend to think of auto insurance if we get into an accident, but what if your vehicle gets damaged without actually being involved in an auto accident? What if a tree branch falls on your parked car, gets chipped in the glass or a deer suddenly overtakes your car while driving? Your comprehensive insurance covers you and will help bring things back to normal.
What is Comprehensive Insurance Coverage?
Comprehensive coverage helps cover the cost of damage to your vehicle when you are involved in an accident that is not caused by a collision. Comprehensive coverage covers damages such as theft, vandalism, hailstorms and killing an animal. For example, if you are driving and collide with a deer, the damage will be covered under comprehensive coverage. However, if you bend over to miss a deer and hit another vehicle, comprehensive coverage does not apply because this type of accident is considered a collision with an object.
Comprehensive coverage is an optional coverage that you can carry to help protect your vehicle. Unlike some coverages, you don’t choose a limit for the comprehensive. The amount it will pay will be based on the actual cash value of your vehicle. So you will be the one responsible for paying your selected deductible.
What does comprehensive insurance cover?
Collision insurance helps you fix or replace your vehicle in a car accident. However, collision insurance does not cover other items that could damage your car. This is where a comprehensive insurance policy can protect you. Now things below are a list of some of the things a comprehensive policy would cover:
- Fire and explosion
- First is Vandalism, for example when someone keys or tags your car
- Theft-related damage, for example, damage caused by a vehicle break-in
- Hurricanes, such as wind, hail, tornadoes, floods, earthquakes and hurricanes
- Falling objects such as a tree limb falling on a parked car, or if someone’s carrying material falls off and falls on your car
- Windshield cracks and chips
- Animal-related damage, such as being hit by a deer jumping off the road
- Comprehensive insurance can make life easier even after your vehicle is damaged. In ERIE, car rental coverage is available in case of extensive damage.
Is damage not covered by comprehensive insurance coverage?
Generally the comprehensive coverage does not cover damage caused by a collision with another vehicle or object. These incidents are covered under collision coverage. Also this will not cover normal wear and tear on your vehicle. Common wear and tear include items that need to be replaced over time from normal use such as:
- Belt and hose
- Car glass wipers
What is comprehensive insurance cover vs. collision?
Here’s an easy way to understand the difference between the two types of coverage. The question comes down to what happened to damage the car?
The Collision insurance generally covers you when your car was in an accident, whether it was with another vehicle or an inanimate object, such as a railing, pothole, tree or building. It depends on the accident, of course, but in many cases, it insures you against things that are under your control.
But the Comprehensive insurance usually covers you when things other than a car accident damage your car, such as a tree branch falling, storm damage or hailstorms. So These are the things considered out of your control.
Generally Many of the lenders require drivers to carry both collision and comprehensive on their policies. And also when the car is owned outright, these coverages may be optional*.
Comprehensive Insurance coverage deductibles and limits
When you finally buy the comprehensive coverage, you’ll choose to set a deductible, which is the amount you pay out of pocket for a covered claim. Suppose you choose the $500 deductible, and your car is later damaged by hail in a covered claim. If it costs $1,500 to repair your car, you’ll pay your $500 deductible, and your insurance will pay the remaining $1,000.
There is a limit to comprehensive coverage, or the maximum amount you can pay for a claim covered by your policy. The limitation for comprehensive coverage is generally the actual cash value of your vehicle.
For example, if your car is stolen, your insurance company will reimburse you the depreciable value of your car, less your deductible. In other words, if you want to replace your stolen vehicle with a newer make and model, you’ll need to use some of your own money to do so, in addition to using reimbursement from your insurer.
You have to always keep in mind that both the comprehensive deductible and limit are separate from your policy’s collision deductible and limit.
Choosing a Comprehensive Insurance Coverage Deductible
generally the insurer will offer a comprehensive deductible in set increments such as $500, $1,000 or $1,500. If you choose a higher comprehensive deductible that generally means your premiums will be lower, which can save money upfront. However, you may have to pay more out of pocket for a covered claim. Similarly, choosing a lower comprehensive deductible means that the amount you pay for coverage will increase. Your agent can help you determine which deductibles and limits best suit your needs.
FAQ about what does comprehensive insurance cover
Does comprehensive insurance cover theft?
Car theft can mean different things. These are the things that are covered under a comprehensive insurance policy.
First a car break-in: In such case comprehensive insurance can help you cover your expenses to fix a broken lock or a broken window, as well as to fix damaged or stolen fixtures on your car.
Stolen Car: If your vehicle is never recovered, collision insurance will cover the actual cash value of your car, minus the deductible. When your vehicle is stolen, first report it to the police as well as your insurance company as soon as possible.
What about personal items? If you have the comprehensive or collision coverage from ERIE, your policy may come with some coverage for items stolen from your car. First check your policy throughly or contact your ERIE agent to learn more.
When is Comprehensive Insurance coverage Required?
If you have a car loan, then your lender may require you to take out comprehensive and collision insurance. It makes sense: If you’re financially secure, you’re more likely to make loan payments on time.
Do I need comprehensive Insurance coverage for my used or paid-up car?
Once your car is paid for, having comprehensive coverage is optional.
As your car gets older, the total replacement cost of your car may be a factor in whether or not you want to keep it. Here’s a solution offered by the Insurance Information Institute: Multiply your premium by 10 for the comprehensive. If the car is worth less than that total, it could be a good time for a wider decline. (And you can put the savings into your emergency fund.)
Is it better to have collision or comprehensive insurance coverage?
What do collision and comprehensive insurance cover? Collision coverage pays for damage to your vehicle if you collide with an object or another car. Comprehensive insurance pays for non-accident damages, such as damage from weather and fire. It also pays for damages caused by car theft and collisions with animals.
Is hitting a deer covered under collision or comprehensive insurance coverage?
Comprehensive coverage covers damages such as theft, vandalism, hailstorms and killing an animal. For example, if you are driving and collide with a deer, the damage will be covered under comprehensive coverage.
What if you have no collision coverage?
If you do not add comprehensive and collision, your vehicle will have no coverage under your car insurance policy. If you are at fault in an accident, collision coverage is the only way to make a car insurance claim for damage or total loss of your vehicle. Without it, you will have to pay out of pocket yourself.
Have comprehensive Insurance coverage full amount?
generally the comprehensive insurance is a different type of coverage than collision insurance that protects your car from things like falling objects, theft and vandalism. As part of so-called “full coverage,” collision and comprehensive insurance are often combined to protect the vehicle against most types of damage.
Thanks for reading what does comprehensive insurance cover.