With comprehensive auto insurance a driver will be financially covered in case their car is damaged by fire, vandalism, theft, natural disaster or an "act of God" (things like hitting an animal or having a tree fall on your car). Of course, coverage will vary from one company to the next and depending upon how much you pay for your policy but generally these are the things that are covered by a comprehensive car insurance policy. You will have to pay a deductible (the amount of money that you will need to pay before your insurance company will pick up the bill) for this type of auto insurance. Here you need to know that the higher your deductible is, the less your monthly premium will be. This means that you will be able to save money each month by raising your deductible but be careful because you may have to pay a lot of money if you ever file a claim. Usually your policy will pay the fair market value whenever you do file a claim. It is important to understand that comprehensive auto insurance coverage doesn't cover any damage that your car may sustain if it is in an accident. For this you will need to purchase a collision car insurance policy.

How Comprehensive Coverage Work

For those who are financing a car, the lender is going to require that you have comprehensive insurance on your car so that you will be able to protect their investment. At the time that you purchase this insurance you will be asked to designate the amount that you desire to be covered for. Most people will choose to purchase $100,000 coverage but this is based upon your own personal needs and thus you can purchase more or less. Usually whenever you look at your auto insurance policy this will be listed as property damage because this amount will also apply to your collision coverage. You will have a deductible whenever you purchase comprehensive car insurance. With most insurance companies that will start at $500. It is possible to request that this deductible be raised or lowered though. In the end this will significantly lower the cost of your auto insurance but it can cost you a great deal of money when and if you ever do need to make a claim. Whenever something beyond your control happens to your car, it will be protected by your comprehensive car insurance. This could be anything from vandalism to theft or a tree falling on your car - basically anything except for an accident that occurs whenever you are driving your car (this is covered by collision insurance). If you need to make this type of a claim, then you have to first subtract your deductible from your bill and pay that first. The remainder of your claim, up to the level of your comprehensive car insurance limit, will then be paid by your car insurance company.

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Who Needs To Have Comprehensive Car Insurance Coverage?

Almost everyone should have comprehensive car insurance coverage on their vehicle. Unless you happen to live in an area that rarely has any weather or crime issues, you really should make sure that this coverage is a part of the insurance that you have for your vehicle. This is your financial safety net in case any damage should ever happen to your car, which is important because most cars will have at least one or two issues throughout its lifetime. There are also regions in which a car's windshield will need to be replaced occasionally because it will crack from weather issues such as hail. For these people, it is also wise to have comprehensive car insurance. Of course, this is also true if you happen to drive a lot of miles on a major highway. This is because rocks can easily chip or crack your car's window. On the other hand, anyone who has a car that is over 10-years-old may wish to drop this coverage because the cost to repair the car may actually be more than the value of the car. In such cases your car would be considered a complete loss. If you go this route, you will need to pay for any theft or windshield damage though.