What is comprehensive insurance?

What is comprehensive car insurance? It’s an optional auto insurance coverage. It will cover your vehicle against damage that is not the result of a collision or theft. Comprehensive insurance will cover damage to your automobile caused from vandalism, rockslides, & fires.

Some of the features not typically included in comprehensive car insurance coverage are towing, personal property coverage and rental to name a few.

So who needs comprehensive auto insurance coverage?

Simply put, just about everyone needs comprehensive car insurance coverage. Anyone who owns and drives a vehicle is subject to the above mentioned damages. If we take a look at animal collisions for example. The Insurance Institute for Highway Safety released a report stating that there were more than 1.5 million deer-vehicle related collisions every year. This resulted in over 1 billion dollars in automobile damage. Please watch out for our beloved deer. Avoiding collisions like this will save lives and money, all while making the world a better place. Let us all do our part in saying no to seeing a deer in headlights. And just to be safe, make sure you have comprehensive car insurance coverage.

Another example of why you would need comprehensive car insurance coverage is if you live in an area prone to vandalism. 

Areas prone to natural disasters are another good example of who may need comprehensive insurance coverage. In California we unfortunately have deal with wild fires and earthquakes. Which are two very good reasons to make sure you are covered with comprehensive insurance.

What does comprehensive auto insurance cost?

Comprehensive auto insurance is determined differently than some other coverages. The calculations aren’t the same as property damage and personal injury liability. With property damage and personal liability the amount of protection you purchase will determine the cost of the insurance. Now with comprehensive car insurance coverage, it will vary depending on the deductible you choose. Like with most insurance, with comprehensive auto insurance coverage the higher the deductible, the lower the insurance premium.

Regardless of the deductible, the cost of coverage for comprehensive car insurance will depend on one major factor. That’s the actual cash value of your vehicle. Actual cash value is the purchase price minus depreciation and the deductible.

Comprehensive auto insurance coverage will pay an amount up to the actual cash value of your automobile to either repair or replace the vehicle covered. If the cost to repair the vehicle exceeds the actual cash value, the auto insurance company may declare it a total loss and pay the sum of the vehicles actual cash value to help replace it. You have the option to retain salvage (keep your damaged vehicle), if this is the case the salvage value will be deducted from the payout.

What does comprehensive auto insurance cover?

When it comes to comprehensive insurance it’s not considered “full” coverage. Damages and injuries are not covered. Injuries you suffer from, when you are at fault in an accident are not covered as well. Liability insurance which is required in California, will cover those risks.

Some of the reasons you’d file a comprehensive claim may be;

• Hail, floods or lightning from thunderstorms, hurricanes or tornadoes
• Falling objects
• Fire or explosions
• Hitting an animal
• Theft
• Earthquakes
• Vandalism or civil disobedience, such as a riot

What doesn’t comprehensive insurance cover?

Comprehensive auto insurance will not help you if you hit an object, rent a car, need towing or roadside assistance, or have personal property stolen from within your vehicle. There are other coverages that will protect you in the event of these risks.

Here are a few examples of coverage you can look into to cover those exact risks;

• Collision: covers the cost of repairing or replacing your vehicle if it collides with another automobile or object.
• Towing & labor (roadside assistance): can help with towing & some on-site services, including:
  • Changing tires
  • Gas, oil, & water delivery
  • Battery services
  • Lockout services
• Rental reimbursement: pays for a rental car if you can’t drive your insured car due to theft or damage

Personal property is usually covered in your homeowners insurance policy or renters insurance policy. If you’re curious on what coverage you currently have, please reach out to one of our agents. They would love to help you with all of your insurance needs. [Click here to call an agent now]