The many different types of insurance coverage that are available to those who own an automobile can become a bit overwhelming and you may be wondering what your best options are when it comes to the type of coverage you should choose.  While you are required by law to purchase basic liability insurance in every state in the US, there are other types of coverage that are optional.  In order to better understand these – it is helpful to look at one of the most widely purchased types of coverage, which is comprehensive insurance.  By definition the term comprehensive means all inclusive or broad, but in terms of insurance it has a slightly different meaning.  In fact, a simple way of describing comprehensive insurance coverage is that it covers any damage that occurs to your vehicle while it is not moving.  It also provides coverage for damages that are not covered under collision coverage and that is why it is important to have both types of auto insurance coverage.

How Will Comprehensive Insurance Protect Me? 

The specific incidents that are covered under comprehensive coverage may vary slightly between insurance companies, as some companies use policies with slightly different language.  However, there are generally a number of situations that are covered under all comprehensive policies.  One of the most common claims under this type of insurance is for a vehicle that is stolen.  It may be the case that the vehicle is stolen and never recovered or it is stolen but damaged before it is recovered.  In either event your comprehensive insurance would pay for the damages, minus your deductible.  This is also a good type of coverage to have as it will pay for any damages that are a result of events that are deemed to be an “act of god”.  This includes things such as tornado damage, hail damage, a tree being blown over onto a car, and more.  While you may think this will never happen to you, it is nice to know you are covered in case it does happen to you.

What Benefits Does Comprehensive Insurance Offer? 

The major benefit of having this type of coverage is that you will not have to pay for major repair expenses out of pocket.  Most types of comprehensive policies require that you have a deductible of anywhere between $250-$1,000.  This amount is deducted from the total amount paid to you for your claim.  If you have a $500 deductible and your vehicle had a tree fall on it and suffered damages that cost $3,000 to fix, your insurance company would pay $2,500.  You would be responsible for coming up with the additional $500 out of pocket.  As it would be quite difficult for most people to come up with $3,000 on short notice to repair your vehicle, a comprehensive policy bridges the gap for you and allows you to get your vehicle back in the road.

Is Comprehensive Insurance Expensive? 

This is actually a type of coverage that is quite affordable and usually costs quite a bit less than collision insurance.  Since most of the coverage is for damages that occur when the vehicle is not moving, there is a far lower chance that you will have to use this coverage when compared to collision.  The best thing to do is to get quotes from multiple insurance companies in order to find the lowest rate possible.  This can be done online in a short amount of time and by comparing quotes from multiple insurers you have a greater chance of saving a lot of money.