If you’ve been shopping for car insurance, you’ve probably come across the term “comprehensive coverage.” This blog explains what comprehensive coverage is and whether it’s worth the investment.
What Is Comprehensive Car Insurance Coverage?
Comprehensive car insurance covers your vehicle repairs after a non-accident event such as:
- Your car is stolen;
- Your car is vandalized;
- A fire or other natural disaster damages your car;
- An animal damages your car;
- A falling object hits your car; or
- A riot or other civil disturbance causes damage to your vehicle.
Comprehensive coverage pays for damage resulting from non-accident related events such as vandalism and inclement weather.
Is Comprehensive Car Insurance Required?
If you’re financing or leasing a car, you will probably need comprehensive coverage. Many banks and car sales companies require proof of comprehensive car insurance before they will provide financing. If you own your car and it’s fully paid off, comprehensive car insurance is an optional expense, but it is certainly worth considering for the added financial security and peace of mind.
4 Circumstances When You Should Buy Comprehensive Car Insurance
Although comprehensive coverage is not mandatory, it is highly recommended in certain situations. You should consider investing in this coverage if:
- You live in a dangerous neighborhood where car theft and vandalism are common.
- You live in an area that is prone to natural disasters. Comprehensive coverage will offset the cost of repairs due to hail, flooding, and falling branches.
- You do not have the savings to replace your car if it’s severely damaged.
- Your car is new or worth more than $3,500. If your car isn’t worth much, comprehensive coverage probably isn’t worth the expense. But if you have a new vehicle, comprehensive insurance will provide peace of mind.
At the end of the day, everyone’s situation is unique. Generally speaking, comprehensive coverage is a smart investment if you can afford it and if your vehicle is worth more than $3,500. You should also consider investing in other additional coverage such as:
Personal Injury Protection or Med Pay: These policies will offset the cost of medical bills and lost income if you sustain accident-related injuries no matter who was at fault for your collision.
Uninsured Motorist Coverage: This insurance will help you cover property damage and medical bills if you are involved in a crash with a driver who is uninsured or underinsured.
Extra Liability Coverage: Although your state might only require a certain amount of liability coverage, it’s a good idea to purchase a policy that goes beyond the minimum limits. This will give you peace of mind and could prevent financial turmoil if you cause an accident that results in serious injuries or extensive property damage.
Although this extra coverage will add to your premiums, it’s a small price to pay to safeguard your financial future. If you don’t think you can afford additional coverage, try comparing auto insurance companies. You can also ask your current provider about the available discounts. For more tips on lowering your premiums, read out blog on ways to save on car insurance.