Disadvantages of Comprehensive Auto Insurance

January 27, 2012

A lot of drivers who have to deal with the routine task of buying auto insurance choose comprehensive auto insurance options because comprehensive insurance is just that: it is an investment in a vehicle against almost all possible conditions, according to what is stated in the agreement. Drivers can find comprehensive auto insurance policies that cover natural issues like fire and flood damage, as well as theft or vandalism and other off-road eventualities.

However, there are some downsides to comprehensive auto insurance options, and other drivers stick with different insurance types for their transportation. Here are some of the basic liabilities that some drivers report from using comprehensive auto insurance over time.

  • High cost - the plain and simple fact is that comprehensive auto insurance is expensive. The insurer wants to hedge their liability against all of the above situations, and if a customer is in a high-risk area, the premium costs for the policy can go even higher. Buyers need to keep a close eye on their premiums when buying comprehensive auto insurance to make sure they are not over-investing in keeping a vehicle street-worthy.

  • A lot of extras - another feature of comprehensive auto insurance is that it tends to include a lot of extra features that buyers will end up paying for. Take a look at the attached "insurance riders" on a policy, such as provisions for emergency roadside service or rental car options, and cancel these as necessary to avoid being overcharged, unless you think that you will need these services every time your vehicle breaks down.

  • Over-hyped policies - there's nothing worse than paying a lot of money for a car insurance policy and then finding out that it doesn't cover the specific events that you are submitting a claim for. That can be the case with policies that bill themselves as "comprehensive" without truly covering the common situations a driver may face on or off the road. Read the fine print in comprehensive car insurance agreements to make sure that your claims will be covered when they occur.

  • Other alternatives - some drivers may not know that you don't need comprehensive auto insurance to cover basic damages to your vehicle. In some cases, insurance types billed as "basic collision" can take care of road costs without all of the other extras. Collision coverage options are good for cars that are garaged and less vulnerable to vandalism or other events.

Take these considerations into account when looking at comprehensive auto insurance policies. Keep in mind that although basic liability insurance often does not cover the actual cost of a claim, there are a number of alternatives that provide more coverage without being "comprehensive," and that in the end, saving money means buying only what you need to safeguard your investment in a vehicle.