As a driver, you may already know the importance of feeling safe and confident while you’re behind the wheel. Having a reliable, roadworthy vehicle is a good start – but auto insurance provides an extra layer of protection that offers you peace of mind in the event of an accident or incident.
Comprehensive auto insurance covers virtually any eventuality that could happen to your vehicle outside of an accident. The best policies provide coverage for incidents such as vandalism, theft, and even natural disaster-related damage. Animal collisions, damage by falling objects, fires and explosions, hail, and lightning strikes are also usually included.
The value of comprehensive car insurance lies in its extensive coverage. Choosing the right policy for your needs is essential to protect you against the vast number of potential risks you might face as a regular driver.
What is Comprehensive Car Insurance?
Comprehensive vehicle insurance is a type of car insurance policy that covers drivers. It helps fund the cost of repairs for damages caused by incidents not related to vehicle collisions and accidents. Most states in the US—including Arizona—don’t legally require comprehensive insurance, which makes it optional for drivers. However, most collision coverage and full coverage policies include comprehensive insurance to protect drivers who have opted for more extensive insurance than simple liability insurance alone.
Generally, comprehensive auto policies cover a variety of risks and incidents. They also cover non-accident-related repairs relating to theft, vandalism, fire, natural disasters, and animal collision damage. Additionally, some policies may also cover damage related to negligence (such as falling branches from trees or reversing into a fire hydrant). However, these claims will require recorded statements and as much evidence as possible in order to be approved.
Who Needs Comprehensive Auto Insurance?
Due to the fact that states and insurance providers do not legally require US drivers to pay for comprehensive insurance, this type of insurance is an optional extra for drivers who feel that it may benefit them and their specific lifestyles. There are also certain scenarios under which comprehensive insurance may make more sense for drivers.
This type of coverage is recommended for everyone who owns a vehicle, whether it is paid off or still under loan. For those who own their car outright, it’s even more important, especially when you consider that comprehensive cover costs only a small fraction of the vehicle’s value.
Drivers who regularly drive or park in high-risk areas, who own vehicles that they cannot afford to repair or replace out of pocket, and who live in areas with high risks of extreme weather events should also have this type of insurance.
Additionally, comprehensive auto cover is recommended for young and inexperienced drivers under 25 and those who do not have sufficient emergency funds set aside to repair or replace their vehicles, should this be necessary. In these cases, comprehensive cover provides financial protection against the significant up-front expenses associated with major vehicle repairs.
Are Comprehensive and Full Coverage Auto Insurance the Same Thing?
Comprehensive auto insurance is part of full coverage insurance, but the two are different in their scope and what they include. Full coverage auto insurance usually includes collision insurance, liability insurance, and comprehensive insurance, the latter of which protects drivers against damage related to non-accident events.
You may choose comprehensive insurance and liability cover alone or opt for a full coverage package to provide more extensive protection. Just remember to check your state’s required coverage types, too. Some states require personal injury coverage or uninsured motorist coverage, while others require only liability insurance from their drivers.
Understanding Comprehensive Auto Insurance Claims
If you’ve opted for comprehensive vehicle insurance and you encounter unexpected damage to your vehicle, you will need to submit a claim. You’ll have to do this before your insurance carrier pays out their portion of the repair costs.
Situations under which you may be able to submit a claim include:
- You accidentally hit an animal on the road and damage your bumper or hood.
- Your car’s body is damaged in a hail storm.
- Your car is trapped in a flood and suffers from water damage.
- Your car is vandalized or gets stolen.
- Your car is damaged by a falling branch from a tree under which you park during the day.
When filing a claim with your insurance provider, most comprehensive policies will pay out either the depreciated or cash value of your car, with your car insurance deductible subtracted. If the costs of your repair are only slightly more than your deductible payment, it may make more sense financially to pay out of pocket for your repair. Say, for instance, that a repair shop has quoted you $1,600 to repair your vehicle, and your deductible is $1,500. You would only save $100 by filing a claim.
However, if your repairs are estimated to far exceed your deductible, your insurance policy can help alleviate the expense of major repairs—although you will still need to pay your deductible out of pocket for your carrier to release the remainder of the repair expenses to cover your repairs.
Can Comprehensive Insurance Claims Increase Car Insurance Rates?
Filing comprehensive auto insurance claims can increase your car insurance rates under certain circumstances, particularly if you make multiple claims. Some auto insurance providers may increase your rates after comprehensive claims. This can suggest that you may file more claims in the future, and they may perceive you to be ‘high-risk’ to insure.
However, it’s important to note that at-fault accident and collision claims will generally increase your car insurance rates significantly more than comprehensive insurance claims.
A Value-Added Vehicle Protection Option
Comprehensive auto insurance offers significant value for drivers, even though it is not required by state law in the US. This type of car insurance can protect drivers against a wide range of non-collision-related accidents, helping to ease the financial costs of repairs.
If you own a car, are a regular driver, drive a high-value vehicle, or regularly drive or park in high-risk areas, consider opting for comprehensive auto insurance to provide you with the peace of mind you deserve.
