Comprehensive Auto Insurance

What do you know about comprehensive auto insurance? Many people have a hard time understanding exactly what it does because it is so similar to collision insurance. The difference in the two types of insurance is that comprehensive insurance will pay for damage to your car that is caused by any unknown entity, or what the insurance company terms ‘an act of God’.

Hurricanes, tornados, high winds, blizzards, ice storms, fire, theft, and vandalism are all incidents that are normally covered by comprehensive automobile insurance. Even though these incidents are usually included on policies, you should be sure to read your own comprehensive insurance policy carefully to see exactly what your car is covered for. As you know, coverage and policies can vary from company to company.

As does collision insurance, comprehensive insurance pays you for your car up to the fair market value if one of the ‘acts of God’ should damage it. Even though no state requires you to carry this type of insurance, you will more than likely be require to have it if you have a loan or a lease on the car.

The normal conventional policy is written to cover accidents that occur while your car is moving and any type of theft. Comprehensive policies cover almost any kind of accident you can think of that would damage your car. From tornados and ice storms to theft and vandalism and even more that are not mentioned here, you can collect on the claim even if you cannot exactly identify the culprit.

Don’t make the same mistake that many people have with comprehensive insurance. These folks discovered too late, much to their sorrow, that buying a cheaper comprehensive policy with a high deductible only saved them some cash each time the premium came due. They didn’t stop to consider what they would do or where they would come up with the money to totally repair it if something happened to their car because of someone breaking into it, or because of an ‘act of God’. Spending just a little more on your policy each month and lowering your deductible may well be in your best interest, because none of us can predict the future!

Make sure you take the time to comparison shop for rates when you are purchasing comprehensive insurance. Do realize that the rate you end up receiving is based not only on your driving record, but on your credit report as well. In addition, discuss with your agent whether conventional or comprehensive auto insurance would be better for you and your situation. Choosing the right type can save you quite a bit of money in the years to come.