1. What is comprehensive insurance?
Comprehensive insurance (comp) is an add-on option to your regular automobile policy. It covers you for loss or damage caused by events other than collisions or impacts with animals, people, and other vehicles under the standard comprehensive coverage part of your regular insurance policy.
Examples include weather damage such as hail, fire, and theft. If you have a comp policy, you cannot file a claim for damage that was caused by your standard comp coverage. For example, if you have hail comp and it’s covered under your policy, then any damages from a hailstorm will be paid for by the insurance company.
2. How does comprehensive insurance work?
When you have comp coverage, your vehicle is protected against theft and damage from fire, lightning, vandalism, windstorm, flood, and falling objects such as trees or stones that cause cracking or chipping of the windshield or other windows. Windshield damage due to a storm may also be covered under comprehensive insurance.
3. Benefits of comprehensive insurance?
The benefit of comprehensive insurance is that it protects you financially if your motor vehicle’s glass, parts, or materials are damaged by external forces not caused by collisions with other vehicles.
4. How much does comprehensive insurance cost?
Comprehensive insurance usually costs around $100 to $150 per year for about $1 million in property damage coverage (comp) coverage.
5. What does comprehensive insurance not cover?
Comprehensive insurance doesn’t cover damage to your vehicle due to collisions with other vehicles, animals, or theft of the vehicle itself. Check your regular auto policy for damages covered in those events. Comprehensive insurance also does not cover flood damage, which is under flood insurance.
6. What are the different types of comprehensive insurance?
There are several types that you can choose from when purchasing comprehensive coverage:
(1) Fire
(2) Lightning
(3) Damage due to falling or flying objects
(4) Broken glass
(5) Theft, vandalism, and riot
(6) Wind and hail damage
(7) Flood.
7. How much does comprehensive insurance cover?
Comprehensive insurance covers the actual cash value of your vehicle after it has been totaled, minus your deductible. It also pays for reasonable expenses you incur while your vehicle is being repaired or replaced. This includes loss of use, which covers the cost of renting a replacement vehicle until your own is fixed.
8. What vehicles need comprehensive insurance?
Comprehensive coverage is required by lenders if you have a car loan or lease, but it’s also recommended for anyone who owns an older car that may be more vulnerable to breakdowns or failure due to age. Also, depending on where you live, the type of climate you live in, and the risk posed by wildlife in your area, it may be advisable to purchase this coverage.
