[ad_1]
Comprehensive coverage is a type of insurance that can cover damages to cars or other items caused by events other than car accidents, such as weather damage. It may be required for car loans, and the price varies based on deductibles and the value of the item being insured.
Comprehensive coverage is a type of insurance most often applied to auto insurance. It can apply to other things as well, and you’ll sometimes see insurance plans that offer comprehensive coverage on the purchase of new electronics like cell phones. If you have purchased comprehensive coverage on a cell phone or other electronic item and that item becomes damaged, especially from an accident such as dropping or scratching your phone, you may be able to replace your phone at a small additional cost.
As mentioned, people typically purchase comprehensive coverage as part of their auto insurance. Instead of covering just simple car accidents, this type of insurance can compensate you for damages or even offer a dollar replacement of a totaled vehicle in the event it is damaged by things other than car accidents. Potential damage that could be covered by this insurance could include wind, flood, earthquake or other weather damage, or generally other unforeseeable events for which the driver or owner cannot be held responsible.
Although comprehensive insurance may be optional, it may be required if you buy a car with an auto loan. Many loan agencies require borrowers to have comprehensive coverage for the life of the loan. People who have purchased moderately expensive cars or luxury vehicles without a loan may still want to purchase comprehensive coverage to protect their investment.
The price range for comprehensive insurance is so variable that it’s hard to put a number on it. Some things can lower the price. First, most forms of this insurance will have a deductible. Therefore, payments for damage to your vehicle take effect when they exceed the deductible payment.
Common deductible amounts include $250 United States Dollars (USD) and $500 for each occurrence of damage. In general, you’ll pay more for comprehensive coverage if your deductible is lower. One advantage of lowering deductibles is that some body shops may waive them if they have to make significant repairs to your vehicle. When considering the deductible, keep in mind how much money you potentially have to lose or need to spend if a car is seriously damaged. When you can easily afford a high deductible, it may make sense to choose this to save money on comprehensive insurance.
Also, you need to consider the value of your car. Once you’re not making payments on a vehicle, especially if the car isn’t worth much, comprehensive coverage could end up costing more than you could potentially save. It may not be a big deal to buy comprehensive auto insurance for a car that’s only worth a couple thousand dollars, because years from now, you could be paying more for insurance than you would to replace or repair the vehicle.
Smart Asset.
[ad_2]