Auto Insurance: Who Needs Comprehensive Coverage
Car Insurance to Cover Miscellaneous Damage Optional But Recommended
Mar 25, 2009
Imagine purchasing a dream car and walking out after a springtime hailstorm, only to see the auto pockmarked with dents and the windshield cracked. Or perhaps the car was parked along the street and some midnight vandals with baseball bats caused broken windows and auto body damage.
Without proper auto insurance, these damages could cost the driver enormous sums of money to repair. That’s where comprehensive auto insurance comes into play.
Auto Insurance: What Is Comprehensive Coverage?
Comprehensive auto insurance covers drivers financially in the case that their car is damaged by environment-related events including hail, animal hits, fallen trees, fire, or flooding. Vandalism, theft, and cracked windshield replacement is also covered under comprehensive auto insurance.
Auto Insurance: Why is Comprehensive Coverage Important?
While comprehensive auto insurance is technically optional, this auto insurance coverage is important for drivers to have for a variety of reasons.
First and foremost, auto repair costs can be surprisingly expensive. Even what seems like a minor dent can cause financial hardship for the driver when the auto body shop comes back with an estimate that the driver simply cannot afford.
One example of what seems like an inexpensive repair is a stolen airbag. Yet depending on the vehicle, the cost to replace just one airbag can run upwards of $900.
Consider the fact that many cars today not only have driver side and passenger side airbags, but side curtain airbags as well – and it is not hard to imagine a bill exceeding $3000 for total airbag replacement.
Comprehensive auto insurance closes this gap by paying the driver for the auto damage, minus the driver’s responsibility to pay the deductible he or she selected on the auto insurance policy.
Comprehensive auto insurance is also important to establish what is called full auto insurance coverage which includes collision and liability as well as comprehensive. Without full auto insurance coverage, drivers are restricted from other auto insurance options such as GAP insurance.
Auto Insurance: Who Benefits from Comprehensive Coverage?
Unless the driver lives in a region that rarely experiences weather events and/or crime, virtually everyone should opt for comprehensive auto insurance. It is a financial hedge against auto damage, which typically throughout the life of a car will happen at least once or twice for one reason or another.
If the driver lives in an area where windshield cracking and/or hail is a problem, it is wise to have comprehensive coverage if the windshield must be replaced every so often. The same goes for drivers who drive many miles on major highways where rocks could chip the windshield and cause cracking.
However, drivers who own a car over 10 years old may elect to drop comprehensive coverage. The cost to repair the auto could potentially surpass the actual cash value of the car, and thus it would be declared a total loss. However, theft damage and windshield replacement costs would be borne by the driver.
Auto Insurance: The Bottom Line on Comprehensive Coverage
Comprehensive auto insurance is an important component of the driver’s overall auto insurance policy.
While some with 10+ year-old autos may elect to decline comprehensive auto insurance, it is recommended that most drivers elect comprehensive auto coverage in order to protect themselves financially in the event of auto damage due to theft, cracked windshields, or acts of God.
See related articles, “Understanding Auto Insurance Terminology," “How to File a Claim With Auto Insurance,” and "GAP Auto Insurance: Safety Net or Ripoff?"
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