Breaking Down Comprehensive Policy: What You Need to Know
Introduction
Comprehensive insurance policy is a type of insurance that covers a wide range of damages to your vehicle that are not caused by collisions. The damages that can be covered under a comprehensive policy include theft, natural disasters, vandalism, and damages caused by animals. In this article, we are going to break down everything you need to know about comprehensive insurance policy, including the coverage, the cost, the benefits, and how it differs from other types of insurance policies.
What is Comprehensive Insurance Policy?
Comprehensive insurance policy, as mentioned above, is an insurance policy that provides coverage for damages that are not caused by collisions. This type of policy is often referred to as ‘other than collision coverage.’ Comprehensive coverage provides financial protection for your vehicle from a range of non-collision related incidents or “acts of God.” Comprehensive insurance is not mandatory, but it is highly recommended for those who want to have additional coverage for their vehicle.
Coverage under Comprehensive Insurance Policy
Comprehensive insurance policies cover a wide range of damages that are not caused by collisions. In general, it covers the following:
1. Theft – Comprehensive coverage provides financial protection to your car in case it’s stolen. This coverage will reimburse you for the value of your car if it’s not recovered after a certain period, usually 30 days.
2. Natural Disasters – Comprehensive coverage also provides financial protection to your car in case of natural disasters such as floods or earthquakes. This coverage will reimburse you for the damages caused to your vehicle due to natural disasters.
3. Vandalism – If your vehicle is damaged due to acts of vandalism like graffiti, scratched paint, or broken windows, Comprehensive coverage will provide financial protection to repair or replace your car.
4. Animal Damages – Comprehensive coverage also provides financial protection for damages caused by animals, including insects, dogs, and deer.
However, it’s important to note that comprehensive coverage does not include damages caused by collisions. Collision insurance is a separate coverage for that.
Cost of Comprehensive Insurance Policy
The cost of comprehensive insurance policy depends on several factors, including the make and model of the car, the driver’s record, the area where the car is driven, and the deductible amount. It’s important to remember that comprehensive coverage is not mandatory, so it’s up to you to decide if the additional coverage is something you need.
The cost of comprehensive policy is usually more expensive than liability coverage. According to the Insurance Information Institute (III), the average cost of comprehensive insurance in the US is $134 per year. However, the cost varies from state to state, and it’s important to shop around for the best deal.
Benefits of Comprehensive Insurance Policy
There are several benefits of having a comprehensive insurance policy. Some of these benefits include:
1. Financial protection – Comprehensive insurance provides financial protection for your vehicle from a wide range of damages.
2. Peace of Mind – With comprehensive coverage, you will have peace of mind knowing that you are protected from damages caused by theft, natural disasters, vandalism, and animal damages.
3. Protects Your Investment – Comprehensive insurance policy helps protect your investment in your car. Cars are expensive, and it’s important to protect them as much as possible.
4. Covers a wide range of damages – Comprehensive insurance policy covers a wide range of damages that are not caused by collisions.
Liability Insurance vs. Comprehensive Insurance
Liability insurance and comprehensive insurance are two different types of insurance policies. Liability insurance provides coverage for damages or injuries caused to other people or their property. It does not cover damages to your own car or injuries to you or your passengers.
Comprehensive insurance policy, on the other hand, provides coverage for damages to your car that are not caused by collisions, such as theft, natural disasters, vandalism, and animal damages. It does not cover damages caused by collisions.
Liability insurance is mandatory in most states, while comprehensive insurance is optional.
It’s important to note that liability insurance only covers damages caused to other people or their property. If you want protection for your car, you need to purchase collision and comprehensive insurance.
Conclusion
Comprehensive insurance policy is an optional insurance policy that provides coverage for damages to your car that are not caused by collisions, such as theft, natural disasters, vandalism, and animal damages. The coverage is not mandatory, but it’s highly recommended for those who want additional protection for their vehicle.
The cost of comprehensive insurance policy varies depending on several factors, including the make and model of the car, the driver’s record, the area where the car is driven, and the deductible amount.
Comprehensive insurance policy provides several benefits, including financial protection, peace of mind, protection for your investment, and coverage for a wide range of damages.
When comparing liability insurance and comprehensive insurance, it’s important to note that liability insurance only covers damages caused to other people or their property, while comprehensive insurance covers damages caused to your car that are not caused by collisions.
If you are considering purchasing comprehensive insurance policy, it’s important to shop around and compare prices to find the best deal that suits your budget and needs.
