There are a number of different types of coverage available in the market today. In the majority of the states, the law requires citizens to have a minimum of collision coverage in their auto insurance policies. Although this type of coverage is undoubtedly a powerful form of coverage of physical body injuries and damage to vehicle or property, it does not take into account the variable other ways through which a car can be damaged. To help solve these types of problems and more, it’s important as a driver to comprehend the meaning of comprehensive auto insurance coverage and what it entails. Let’s take a look.
What exactly is Comprehensive Auto Insurance Coverage?
In simple terms, comprehensive auto insurance coverage is the name given to a type of coverage that covers damage related incident costs, other than the accident itself. This means helping the owner pay for the repair and replacement of a vehicle that has been stolen or damaged in incidents other than a collision. In situations where you plan on financing or providing lease of your car, the lender will most probably require comprehensive auto insurance coverage.
What does it cover?
There are a number of situations where comprehensive auto insurance coverage comes in handy. This includes the following:
- Incidents of theft
- Situations involving vandalism
- Objects falling from above
- Incidents involving natural disasters such as hurricanes, tornadoes, flooding
- Fire situations
- Situations where animals damage the car
- Civil disturbances such as protests or riots that could possibly result in complete damage or destruction of the car
What does it not cover?
The following situations entail those not covered under a comprehensive auto insurance policy:
- Vehicle damage as a result of causes related to a collision
- Damage to another individual’s vehicle as a result of collision
- After an incident has taken place, the medical expenses to be incurred of the driver or the passengers involved
What are comprehensive coverage deductibles and limits?
Once an individual purchases a comprehensive coverage, a deductible must be chosen. This is the term used for paying towards a particular covered claim. Other than that, a limit should always be present at the back of one’s mind. This means a set maximum amount that your auto insurance company will pay towards a claim. In other words, it can be defined as typically the cash value of your vehicle.
To sum it up, comprehensive coverage helps to pay for losses that do not occur as a result of a collision accident. It is generally termed as an optional coverage other than in cases involving leasing and financing, where it is mandatory.