Where collision auto insurance covers damages sustained by vehicles or collisions with certain objects in accidents, comprehensive insurance covers damages or losses sustained by other entities.
What is Comprehensive Auto Insurance?
Comprehensive auto insurance is a type of optional coverage that pays for damages to vehicles caused by theft, vandalism, animal encounters, or so called "acts of God," such as hail, fire, storms, tornadoes, and hurricanes, and such phenomena as falling trees, rocks, or streetlights. When coupled with collision insurance, the two cover all damages that may be implemented upon vehicles. This type of coverage is reflected by a slight increase in premiums, as car insurance companies must pay clients for damages to cars in all of these unlikely scenarios when clients who have this insurance file claims.
Factors that Determine the Cost of Comprehensive Car Insurance Coverage
There are a number of things that car insurance agencies look at when setting the cost of comprehensive coverage for clients. The rates for this insurance are dependent on the type of car and the year of the car (essentially, the overall worth of the car), as well as the likelihood of certain events that would result in claims due to the residence area. Rates may be higher in places where theft is likely, or in areas prone to hurricanes and flooding. The deductible, which is the amount of money that the client is expected to pay following a claim before the insurance kicks in, also influences this type of car coverage. A high deductible would mean lower rates for all types of coverage.
Is Comprehensive Car Insurance Necessary?
The necessity of comprehensive auto insurance coverage is to be determined by the driver, as this type of coverage is not mandatory. Unfortunately, the same factors that would make people feel that this insurance is necessary are the same ones that cause rates to go up. In areas where a car is likely to be vandalized or stolen, or where potentially damaging environmental conditions are not uncommon, drivers may want comprehensive insurance, however, in these same areas, rates would be higher for coverage because claims would be more likely than in other places.
Comprehensive auto insurance covers just about every type of damage to a vehicle that is not covered by collision insurance, which usually only covers instances where vehicles strike other vehicles, or they strike certain objects, such as telephone poles. Comprehensive coverage protects cars from other people, environmental phenomena, animals or animal collisions, and other "acts of God," such as falling items. This type of insurance may be worth having for people with nicer vehicles, but for those driving older or low valued cars, it would likely save money to forgo comprehensive coverage.
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