Explain Comprehensive Auto Insurance

Comprehensive car insurance covers multiple perils other than collisions.

Comprehensive auto insurance is a type of property damage insurance that covers physical damage to your automobile from events other than collision with another vehicle or object. According to the CarInsurance.com website, comprehensive insurance pays to repair your vehicle, minus the deductible you have chosen. Comprehensive coverage isn’t required by states. But if you finance or lease the automobile, lien holders usually require you to have it.

What It Covers

Comprehensive insurance covers replacement of auto glass damaged by hail or flying debris. It also covers damage from flooding, wind, hail and other weather-related events, according to CarInsurance.com.

Earthquakes and Deer

Comprehensive insurance also covers damage from earthquakes, fire, theft, vandalism, riots and falling or thrown objects. And it covers damage from a collision with a deer or other animal or bird.

What’s Not Covered

Comprehensive doesn’t cover everything. For instance, it excludes damage from mechanical breakdowns or other wear and tear. It doesn’t cover damage from rust or damage to tires. And it doesn’t cover losses of personal property left in the car. Nor does it cover damage to another person’s property.

Comprehensive v. Collision

Comprehensive and collision insurance are different forms of physical damage coverage. Collision covers physical damage to your vehicle if it hits another vehicle or is struck by another vehicle. It also covers physical damage from collision with an object such as a pole, fence or tree. It doesn’t cover damage to other people’s property. Comprehensive, by contrast, is for physical damage from causes other than collision. Collision, like comprehensive, isn’t required by states but lien holders may require it on cars you finance or lease.

Who Needs Comprehensive?

Comprehensive insurance is best suited for people with newer cars or cars that are in excellent condition, to cover repair or replacement in case of loss, according to CarInsurance.com. It’s also valuable for people in suburban and rural areas who are at greater than average risk of colliding with deer. You also must have it if you finance or lease the vehicle. This insurance may not be worthwhile if you have an old car or one in poor condition.

References

• CarInsurance.com: Auto Coverage Definitions