Comprehensive Insurance Coverage
Comprehensive Auto Insurance includes almost everything that might go wrong with your vehicle except collision. This is the reason why Comprehensive plans are sometimes called “Other than Collision” insurance coverage. Comprehensive Insurance covers all types of damage and loss including:
Earthquake or Explosion
Falling or Flying Objects
Damage Due to Contact with a Bird or Animal
Windshields may be insured separately, with no deductible. Comprehensive plan can also offer coverage for some extended medical expenses of a person injured in an accident, salary lost during that time, and funeral expenses.
On some policies you can find an extension covering you when you are driving other cars as well. However, this extension gives you merely the basic insurance coverage called Road Traffic Act cover, which is insufficient to cover the costs of the damaged car and you may be liable for a large part of the other party’s claim. Therefore, it is important to read your policy carefully to learn what is covered and what is excluded. Comprehensive Auto Insurance does not cover theft or vandalism caused by family members or employees, or damage due to improper maintenance.
Comprehensive coverage is highly recommended in case your car is worth over $4000, or is valuable and new. Also, if your vehicle is financed, Comprehensive coverage is often a requirement with the finance company or lender who is willing to protect their investment until the loan has been paid off. This type of coverage is also worthwhile for people whose cars can become a target for theft.
If your car is stolen, and you need to file a claim, you will be reimbursed the fair market value of your car, but not the value of the loan you owe to the bank. Gap Insurance can be a good option in this case. It will cover the difference between a vehicle’s actual cash value and the sum you owe the finance company.
If you are under 25 and an owner of an older car or your car is not very valuable due to its poor condition, purchasing Comprehensive Insurance coverage gets unnecessary. Since Comprehensive is the most expensive type of coverage, your premium could easily cost more than your vehicle. You should assess your Car Insurance needs and your current situation before deciding on the type of insurance policy.
The cost of insurance generally depends on several factors: the age of the driver and his or her driving experience, the value of the car, the area where the car will be normally driven and the estimated annual mileage. You are recommended to check the quotes of Auto Insurance companies online to compare the prices and apply the information to your current circumstances.
Weighing the cost of the insurance coverage against the value of the vehicle will show if it is cost-effective to carry this coverage at all. Comprehensive and Collision Auto Insurance coverage types come with a deductible, which can be as cheap as $200 and as expensive as $1,500. A higher deductible lowers the cost of insurance premiums considerably.
Most of us prefer to get maximum protection when it comes to our car and safety. In many cases it is advisable to have both Comprehensive and Collision Insurance policies.
Unlike Collision claims, Comprehensive claims do not affect your insurance rates immediately. Nevertheless, frequent filing Comprehensive claims is likely to increase your Car Insurance premiums. You should find out what Comprehensive claim limits your insurance carrier has in advance.
Car Insurance companies keep record of every claim filed and have accurate statistics of damage and losses trends. The Comprehensive Loss Underwriting Exchange (C.L.U.E.) report contains a five year history of an insured individual’s losses and their personal property. The information stored helps insurance companies determine insurance rates and make a decision about accepting a policyholder. Usually, filing three or more Comprehensive claims in three years will mean that an Insurance company will decide to dismiss you.
Some irresponsible people find the idea of filing a false Comprehensive claim very tempting. They would intentionally cause damage or lose their car to file a claim and try and get reimbursement. However such actions only seem exciting when they appear in movies. Filing a false Comprehensive claim in real life is an insurance fraud that will most certainly result in getting banned from buying Car Insurance and even in a jail sentencing.
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