Comprehensive Car Insurance

What is Comprehensive Car Insurance?

Comprehensive car insurance is an all-encompassing type of coverage that provides extended protection beyond just simple accidents. As a result of the extended coverage and the attached higher premium, comprehensive car insurance is not required in most states.

That being said, some lenders will require owners to carry comprehensive car insurance until their car loan is paid in full. Comprehensive car insurance typically attracts a specific customer; the policy is not intended for owners of beat-up or inexpensive vehicles. In a general sense, comprehensive car insurance is beneficial to those owners who wish to fully protect themselves and their cars against unexpected and unpredictable mishaps. You can also contact a car accident lawyer for legal advice and assistance.

What does Comprehensive Car Insurance Cover?

Comprehensive car insurance covers all damage to the vehicle that was not a result of a car accident. Because car insurance is a compulsory item in the United States, the most basic packages will protect an individual from car accidents and the subsequent damages—such as medical bills and repair costs—associated with an accident. In contrast, a comprehensive car insurance policy will provide protection against all other, unpredictable occurrences that can damage a car.

A comprehensive car insurance policy will typically cover damages sparked by fires, theft, vandalism, animals, weather-related incidents and costs associated with things, such as tree branches, falling on your car.

The largest benefit associated with a comprehensive car insurance policy is the fact that the coverage plan is relatively little when compared to the price of replacing or fixing a totaled car. As stated before, such a plan is typically obtained by individuals who have recently purchased a new or expensive car; the costs associated with fixing or replacing a car would far exceed the price of a comprehensive car insurance plan.

The specifics associated with what is covered under a comprehensive car insurance plan will vary based on an individual basis. It is important to read the fine print before finalizing the purchase as insurance companies will sometimes exclude specific damages from receiving coverage.

Although many people think a comprehensive car insurance plan will cover all types of damage sustained by a vehicle, the plan will not provide compensation or reimbursement to damages the policy holder inflicts on others.

What is the Deductible Associated with a Comprehensive Car Insurance Policy?

A comprehensive car insurance policy will typically have deductibles—the amount paid out of pocket for damages before the insurance company provides compensation—that are more costly than liability or collision plans. This exceeded cost is typically tempered over time, as insurance premiums are lessened if the policy-holder chooses a higher deductible. The most common deductible amount associated with a comprehensive car insurance package is roughly $500.

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