Comprehensive car insurance is insurance coverage that pays to repair or replace a damaged vehicle from things other than a collision with another vehicle or a rollover. Sometimes called “bad luck” or “other than collision” insurance, comprehensive insurance covers events outside of a driver’s control. In some states, comprehensive coverage pays to replace a damaged windshield as well. But how much does comprehensive car insurance cost?
How Much Does Comprehensive Insurance Cost
Comprehensive insurance coverage cost about $160 a year on average in 2017. This is cheaper than most other types of coverage. Though this number probably includes group policies which are typically cheaper than a policy you’d find online. Your policy’s cost is based on the “actual cash value” (ACV) of the vehicle. This is how much the car will cost to replace, subtracted by the car’s depreciation. Because of this, cars that are worth more are more expensive to insure, but the price of your policy varies greatly depending on your deductible.
What is a Deductible and How Does it Work?
Most of the time, your comprehensive insurance policy will have a deductible, usually between $100 and $1000. Your deductible is the amount your insurance provider subtracts from a check or your vehicle’s value when you file a claim. For example, if your deductible is $1000 when you file a claim because your car was damaged in a flood, your insurance provider would send an amount to repair your vehicle minus $1000. This is also the case if your car needs to be replaced. The insurance provider would subtract $1000 from the value of your car before the flood.
If the total amount of repair cost gets too close or exceeds the car’s value, the insurance provider considers the vehicle “totaled.” If you decide to fix a totaled car, your insurance provider will subtract its salvage value from your payout. Opting in to a larger deductible will reduce the monthly or yearly cost of your policy. This is preferred if you have enough to pay the deductible out of pocket when purchasing the policy.
What Does Comprehensive Car insurance Cover
Comprehensive insurance and several other types of coverage together are commonly referred to as “full coverage.” Comprehensive insurance often sounds like full coverage, but it doesn’t fully cover every scenario. Comprehensive insurance is for events outside of the driver’s control or when a vehicle is damage while parked.
Comprehensive insurance covers you when any of the following damages your vehicle:
- High wind, hail, rain, lighting, and other weather conditions.
- Fire damage.
- Objects that have fallen, such as trees.
- Collision with an animal.
- If your car or parts of your car are stolen or damaged in an attempted theft.
- Natural disasters – including earthquakes, hurricanes, floods, and tornados.
- Vandalism or intentional destruction by a third party, such as during a riot.
Comprehensive Insurance does not cover you for:
- Damage from an accident with another vehicle.
- Damage or injuries caused to others.
- Damage from a collision with a static object like a curb, fence, or telephone pole.
- Damage caused by the road conditions, including potholes.
- The cost of towing your vehicle for a breakdown or a flat tire.
- The cost of a rental vehicle.
Do I Need Comprehensive Insurance
Comprehensive insurance is optional, as no state requires drivers to have it. However, many leaseholders or lenders will require drivers to be covered with comprehensive insurance. Comprehensive coverage becomes less valuable when your vehicle becomes less valuable. This is because your insurance provider will never pay you more than your vehicle’s value, subtracted by your deductible. So if your lender or leaseholder doesn’t require it, you may decide to waive comprehensive insurance.
Consider the amount you’re paying for comprehensive coverage. How much you’re paying for comprehensive coverage can usually be found on your monthly bill, your insurance provider’s website, or your policy’s declarations page. If your deductible and premium together exceed your car’s value, then comprehensive coverage is of no value. Advisors recommend removing comprehensive coverage if your car’s value drops low enough that you can no longer purchase coverage. However, If you rely on a car for your job and you aren’t able to buy another car, keeping your coverage may be the better choice.
Do I Need Collision Insurance To Get Comprehensive Insurance
Insurers offer comprehensive coverage together with collision, but comprehensive insurance can usually be purchased alone. Comprehensive insurance, collision insurance, and the state’s minimum liability together in a single policy is considered full coverage insurance. You will need all three to have full coverage insurance. Comprehensive insurance is often confused with collision. They are both types of car insurance but cover different things. Collision covers accidents and rollovers, regardless of who’s at fault, and comprehensive covers things out of the drivers control. Other things collision covers are:
- Hitting a fence or tree.
- Colliding with a building.
- Damage caused by the roads surface.
What Are The Odds That I Have to Repair or Replace My Vehicle
If you drive in hazardous areas, the chance of damaging your car is higher. Rural areas where wildlife often roams onto busy roadways, areas where car theft and vandalism are frequent, cities prone to natural disasters, or busy roads where gravel and debris can crack your windshield are all things that increase your risk of having your car damaged by things that would be covered under comprehensive insurance. Glass claims are more common in Arizona or other desert states because of the likely hood of rocks being kicked up into your windshield. West Virginia or central/non-coastal states see more deer-related accidents. 7 percent of Progressive drivers filed a comprehensive claim in a given year with repair costs on average of around $1400.
Comprehensive car insurance is designed to cover you for things out of your control and is a great tool to save money and protect your property from things completely unforeseen. Go out and get a quote for comprehensive coverage online instantly today!
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