Comprehensive Coverage Auto Insurance: 3 Facts You Should Know

January 27, 2012

If you have taken out a loan to buy a car, or if you have a new or luxury car, you will definitely need comprehensive coverage auto insurance. This important coverage is intended to cover vehicle damages not sustained in an auto accident (for example, damage from flooding, wind, hail or an earthquake). While this coverage may seem expensive and unnecessary to you, it's good to have--and before you buy your policy, you should learn more about this type of auto insurance. You will also learn some ways to reduce the price of comprehensive coverage, to make it easier for you to afford.

Do I Need Comprehensive Auto Insurance, and What Does It Cover?

Most comprehensive policies cover vehicle damage that stems from theft, vandalism, fire, inclement weather and other things. Comprehensive insurance usually does not pay for damage from acts of God, or the theft or vandalism of the vehicle by employees or relatives. It also does not pay for damage to the tires, or engine damage from shoddy maintenance. If you have a vehicle that's not worth that much, and other people besides you drive it, it may not be worth your while to get comprehensive coverage.

Deductibles and How They Affect You

Like other forms of auto insurance, comprehensive coverage auto insurance comes with a deductible. If your vehicle sustains damage that doesn't come from a car accident, and the damage will cost more than the deductible amount to repair, then your coverage kicks in. A lot of comprehensive coverage policies come with a deductible between $250 and $500--and generally speaking, the smaller your deductible, the more you'll pay in premiums. Before you decide on a deductible, keep in mind that if you ever need to make a claim, you will need at least that much cash on hand to get the process started. Get as high of a deductible as you can afford, and you will save money each month.

Where You Can Get Comprehensive Coverage

All the major insurers (such as Geico, Allstate and State Farm) offer this insurance definition, and there are online sources as well, where you can get free, fast quotes from a variety of insurers, just by submitting a simple form. All you will need is some basic information about yourself and your vehicle, and it's easy to get started.

You may think that your basic insurance policy is sufficient to protect you and your investment--but if you have a lien on your car, or if you drive a high-end or rare model, you may want to think about purchasing comprehensive auto insurance coverage. There are many methods by which you can tailor your policy to suit your needs and your budget, and an insurance agent will be able to sit down with you and help you determine what level of coverage you need. Many people think they are saving money by skipping this important coverage--but the costs incurred from just one incident are far greater than any amount saved. It's possible to find a good deal on comprehensive coverage--you just have to shop around.