What is Comprehensive Coverage?
Comprehensive coverage is a form of car insurance that covers damage to your vehicle caused by factors other than an accident or a collision. Comprehensive insurance will cover your car if it is wrecked by a tornado, dented by a deer, vandalized, damaged as a result of a break-in, or crushed in case of a collapsing garage, among other things.
Comprehensive coverage is an optional insurance policy that you may purchase to help safeguard your vehicle. Unlike certain coverages, comprehensive coverage does not have a limit. The maximum amount it will pay is determined by the actual cash worth of your automobile. You are responsible for paying your chosen deductible.
Comprehensive insurance is not legally required in Florida. However, lenders may frequently request it if your vehicle is leased or not entirely paid off. Damage from causes that are frequently beyond your control is also covered by comprehensive insurance. So, unless you’ve mastered the art of commanding the weather, every nearby tree limb, and every would-be burglar, comprehensive auto insurance is a smart idea.
Is Comprehensive Coverage on every auto insurance policy?
Automobile insurance coverage consists of three parts: comprehensive insurance, collision insurance, and liability insurance. Most states require drivers to have liability insurance, although collision and comprehensive coverage are optional if the vehicle is owned entirely. If the car is financed, the auto loan company may need comprehensive insurance.
If you paid for your automobile altogether or now own it after ultimately paying it off, Comprehensive coverage is no longer required. That means you can opt in or out of Comprehensive coverage at any time while your insurance is valid. If you are unsure whether to add or remove it from your auto insurance, examine the two possibilities below; First, consider if you have the money to repair or replace your automobile if it is damaged or stolen. Second, consider the worth of your automobile, taking into account its age and condition.
What does Comprehensive Coverage cover?
Every accident is unique, and whether or not comprehensive insurance covers your accident is decided by a variety of factors. The following are some examples of damage that may be covered by comprehensive insurance:
- Theft
- Fire
- Vandalism
- Animal encounters
- Objects that are flying or soaring
- Windshield damage caused by hail
- Windstorms
- Earthquakes
Although most insurers give a list of dangers covered by Comprehensive coverage, you should still contact your insurance provider or an insurance attorney to obtain a clearer picture of what is included in your unique policy. Far too often people purchase insurance without a full understanding of all nuances of the coverage in the policy.
Why is it important to have Comprehensive Coverage?
Comprehensive vehicle insurance provides financial protection against theft, natural disasters, and weather-related damage. If a tree falls on your car or a burglar takes your catalytic converter, you won’t have to pay for it out of pocket.
The main reasons why you should consider comprehensive coverage is because:
- Comprehensive coverage protects you from theft, natural disasters, and other big events beyond your control.
- Comprehensive coverage sometimes includes “unforeseen incidents” such as break-ins or hail-damaged windscreen wipers.
- If you buy a new automobile and reside in a high-crime area, comprehensive insurance will cover any break-ins or thefts.
If you find yourself in a situation where you can’t afford to fully repair or replace your automobile if something (other than an accident) occurs to it, you should think about getting Comprehensive coverage. As a result, if any of the aforementioned dangers harm your vehicle, you’ll simply be liable for paying your agreed-upon deductible. Comprehensive coverage, on the other hand, may not be essential if you drive an older car with pre-existing damage that is not worth repairing.
Learn More: Uninsured and Underinsured Motorist Coverage in Florida
Is there a deductible with Comprehensive Coverage?
A comprehensive deductible is the amount you agree to pay before your insurance company begins to pay for damages. Consider it how much financial risk you’re willing to accept if you’re in an accident. Generally, the bigger the risk you’re prepared to assume (higher the deductible), the cheaper your insurance premium. The smaller the risk (lower the deductible), the higher your insurance prices.
The cost of your coverage will be determined by your insurer, the province in which you live, and, of course, the amount of your premium and deductible. Because comprehensive coverage is typically an add-on to your insurance, it will incur additional costs and be subject to a deductible. However, do not casually dismiss this coverage just because it will lower your monthly auto insurance premium. The pennies you save immediately will cost you significantly later.
If you select a lower deductible for your Comprehensive coverage, the cost of your premium will rise. That means your entire insurance coverage will be slightly more expensive, but you will only be responsible for the tiny deductible if you file a claim. If you pick a larger deductible, your premiums may be lower, but you risk paying more out of pocket if something happens to your car.
Here is an example to illustrate a clearer idea of comprehensive coverage and deductibles: Assume there is a severe hailstorm in your neighborhood and your vehicle sustains $1,000 in damage. Your comprehensive coverage has a $100 deductible. The first $100 will be paid by you, and the rest $900 will be paid by your insurance carrier. If you own an older vehicle, you should think about whether you need comprehensive coverage, as it is typically restricted to the real cash worth of your vehicle.
It is important to consider and be cognizant of the value of your car when selecting your deductible. For example, if your car is worth $3,000 and you have a $2,000 deductible, then you will only receive at most $1,000. In scenarios such as this, when the car is older and not worth very much it may not be worth it to have comprehensive insurance. On the opposite side of the spectrum, a newer and more expensive car will make having comprehensive insurance more important. Generally, speaking the higher the value of your car, the more expensive any repairs will be, and having comprehensive insurance will alleviate the concern for expensive repairs.
Speak to a Lawyer if you Need Help with an Auto Insurance Claim
If you are not sure whether you should purchase comprehensive insurance an attorney at KMW Legal can help discuss the matter with you and explain why Comprehensive Coverage is a great option in Florida. This auto insurance coverage offers financial protection in cases of auto theft, vandalism, “acts of nature,” and other incidents other than car crashes. Hailstorms, lightning, flood, and hurricane damage claims are other typical coverages in Florida under comprehensive insurance.
If you have questions or need help with an auto insurance claim contact KMW Legal for a free case evaluation.