How to Choose a Comprehensive Auto Insurance Policy

August 25th, 2021

Comprehensive car insurance is a type of insurance that is meant to cover more than just liability. There are many things you can get covered, which means that your comprehensive coverage could be a lifesaver if something happens to your vehicle. Comprehensive Car Insurance limits and deductibles are two factors you should take into consideration when purchasing a policy. Deductible and limits are what you will have to pay for in the event of an accident or damage to your vehicle.

Your deductible is just the amount you shell out on your claim before the auto insurance kicks in. Once you pay this, your comprehensive car insurance will then cover up to the full extent of your claims, up to a certain limit. Let’s say that your car is totally damaged and would cost $6k to repair, and you have a deductible of just $1000. This will protect you from large losses such as fire or physical injury due to damages to your vehicle.

Natural Disasters Comprehensive car insurance also covers damage caused due to natural disasters such as hurricanes, tornados, earthquakes etc. This type of damage is mostly caused due to wind, hail, rain and snow. The damages caused due to natural disasters are often covered by the government. However, you should still check with your provider whether your policy includes these damages. In most cases, comprehensive car insurance only protects against damages caused due to natural disasters, not thefts or fire.

Collision Coverage If your vehicle gets damaged either because of collision and comprehensive car insurance has been added to your policy, you may be eligible for certain add-ons such as roadside assistance. Roadside assistance can help you call a tow truck if your vehicle gets damaged due to a breakdown, or if you get stuck in flood. However, you should check with your provider whether this coverage is included in your policy.

Theft and Fire Comprehensive insurance plans generally cover damages caused due to theft or fire. This means that comprehensive plans do not usually cover damages caused due to natural disasters. Therefore, if you own a car, it is important for you to look out for a separate comprehensive car insurance plan that covers damages caused by fires or thieves. However, keep in mind that this type of plan is costly and you must look out for special discounts and benefits to make your plan more affordable. To learn about the difference between comprehensive vs collision insurance, check out Joywallet’s article.

Collision Policies Many comprehensive car insurance companies offer a Collision Only option for their clients. With this type of coverage, your policy will only cover for damages that occur due to collision. This is not the same as collision and comprehensive coverage. Collision Only policies do not provide coverage for damages caused due to vandalism or theft. This type of coverage may be useful for individuals who have cars with expensive engine systems.

High Deductible Insurance Some comprehensive auto insurance coverage providers allow their customers to choose an amount for their deductibles. If you have a high deductible then you can reduce the premium cost. However, you must always remember that the higher the deductible you choose, the lower the premium cost will be. In this case, the deductible should be high enough so that you do not need to worry about paying any extra costs for accident damages and injuries due to accidents.

Most Comprehensive Car Insurance policies offer various optional covers such as Legal Aid, Breakdown cover, Travel Insurance, Pet Insurance, Collision coverage, and more. You can add-ons to a comprehensive car insurance policy, which is very beneficial for those who want to add certain benefits on their policy. However, you need to take extra care when you buy a comprehensive policy, as many insurers may impose very high deductible on adding add-ons.