Comprehensive covers damage caused to your vehicle due to certain events such as theft, fire, vandalism, and falling objects. It is recommended to buy comprehensive insurance as it covers the vehicle, the insured and third party if it is a single policy. This insurance cover types cover all the risks as per the Motor Vehicles Act and also the damage or loss caused to the vehicle. For own vehicles, it is an optional coverage and if you are leasing or financing, the lender needs comprehensive coverage.
What is covered by comprehensive insurance?
Every accident is unique and comprehensive insurance covers the accident based on a set of circumstances. Here are a few damage types that may be comprehensive insurance covered such as:
- Vandalism.
- Theft.
- Natural disasters such as a tornado or a hurricane.
- Fire.
- Damage is done by animals to your car.
- Falling objects.
- A civil disturbance resulting in destruction or car damage.
What is not covered?
Comprehensive insurance covers all the types of damage caused by incidents that are not law determined but may happen as you are driving such as:
- Damage to your car from a collision due to another person’s vehicle.
- Damage from a collision.
- Medical expenses of your passengers or you after an accident.
Comprehensive coverage deductibles and limits
Purchasing a comprehensive coverage implies selecting deductibles and this is the amount payable towards a covered claim by you. For instance, you choose $500 as deductible and your car is damaged by hail as per the covered claim. In case the car repair costs $1200, you may pay your deductible $500 and your insurance will pay the balance $700.
Comprehensive coverage has its limits as the maximum amount to pay for your policy towards a claim that is covered. This comprehensive coverage limit is your vehicles actual cash value.
In case your car is stolen, your policy reimburses the depreciated value of the car. If you wish to replace your stolen vehicle with a new model and make, you may be required to spend some money, apart from the insurer’s reimbursement.
What is the difference between collision and comprehensive insurance?
A common mistake is that people use these terms interchangeably, while there is the difference. Comprehensive insurance refers to optional coverage added to your state-required insurance to provide additional cover caused not by the vehicular collision.
Yes. Some people mistakenly use these terms interchangeably, but there is an important difference, namely that most insurance providers do not offer anything called “full coverage.” In other words, there is no single auto insurance policy that covers everything. On the other hand collision coverage helps paying for car repair damaged particularly in a collision.
Comprehensive is separate from the collision and covers losses of different types. Here are the features covered by Comprehensive Vs Collision insurance:
|
Features |
Comprehensive Coverage |
Collision Coverage |
|
Covered Details |
Non-collision damages such as Theft, Fire, Falling objects, Natural disasters and Animal damage. |
Damages from: Collision with another vehicle, object such as a fence, Single-car rollover accidents. |
|
Coverage Limit |
Actual value in cash |
Actual value in cash |
|
Deductible. Is it required or optional |
Yes it is deductible. The coverage is required if you plan to finance or leasing the vehicle or else it can be your optional choice. |
Yes, it is deductible. The coverage is required if you plan to finance or leasing the vehicle or else it can be your optional choice. |
|
What is not covered? |
Damage was done to another person’s vehicle. Medical bills (Your passenger, yours, other passengers or drivers) |
Damage done to another person’s vehicle. Medical bills (Your passenger, yours, other passengers or drivers) |