Comprehensive Coverage... What's That?

Comprehensive Coverage, which is often referred to as COMP or Other Than Collision, is a type of insurance that covers damages caused to your vehicle from accidents not pertaining to a collision. What this means is that, this type of insurance coverage will take care of the damages to your vehicle in the event that it is stolen, vandalized, damaged by a fire, flood, or any other type of severe weather condition or natural disaster. Comprehensive Coverage even covers damages caused by animals. Unlike other countries, Comprehensive Coverage in the United States does not act as an all-inclusive insurance plan, but rather a limited physical damage coverage that pays for liabilities covered under your insurance policy. In order to have physical damage full-coverage, you must purchase Collision Coverage, along with the Comprehensive Coverage plan.

Is This Coverage Mandatory?

Although Comprehensive Coverage is not required by the vehicle owner, in some cases it may be, depending on the company who you lease your vehicle through. They have an influence in the amount of deductible you may have. Be sure to check with your finance company if it is possible to lower your insurance premium by increasing your deductible. As we have read, most states require Property Damage Liability so that the other vehicle or property which was involved in the accident has their damages taken care of under your insurance policy. There aren't any states that require you to carry an insurance policy that will cover the damages caused to your own vehicle.

How Much Of A Deductible Do I Need?

This is ultimately up to you. However, first let us examine what a deductible actually means. A deductible is part of a claim that you are responsible for paying before your insurance benefits begin to pay out. In most cases, you can choose a deductible in the range of $100 to $2,500, although the majority of deductibles are usually chosen between $250 and $1,000. In order to receive a quote on Comprehensive Coverage, you will first need to choose a deductible in the amount you please. Keep in mind that the more your deductible is, the lower your insurance premium will be, however you will also have to pay more money out of your personal savings before your benefits become active. So before you decide on how much of a deductible you want, consider your finances and what you have to spend. If you can afford the out-of-pocket expense when making a claim, then choosing a higher deductible is ideal, but if not, you may have to consider other options.

So Why Do I Need Comprehensive Coverage?

In all actuality, you don't. However, if you want to make an insurance claim in the event your vehicle is involved in some form of damages other than a collision, then you do. Without Comprehensive Coverage you are left to pay the cost of repairs yourself, which can become extremely costly. In situations where you have an older vehicle that may not mean much to you, and valued as just a 'get-around-town' car, then Comprehensive Coverage may not be as important to you. However, it may be more valuable to your friend with the new Lamborghini, who should consider Comprehensive Coverage just in case something were to happen to that vehicle which could cost him major dollars in repairs.

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