Let’s face it, your car can suffer damage regardless of how careful you are, whether parked at the mall or in front of a friend’s house. In other words, you don’t have to be physically driving your vehicle for you to be forced to file a claim with your auto insurance company. Of course, that’s if you have comprehensive coverage, which is a type of auto insurance that protects your vehicle against losses caused by events not related to a collision. While comprehensive coverage is optional and not required in addition to the state minimum liability insurance limits, it must be purchased along with collision coverage.
Comprehensive coverage protects you against:
- Glass damage (such as a broken windshield)
- Damage sustained from hitting an animal or bird
- Damage from falling objects or missiles
- Damage sustained due to severe weather or natural disaster — such as wind storm, hail, hurricane, tornado, etc.
Now, keep in mind that, with both collision and comprehensive coverage, an out of pocket deductible, to be paid by you, will be instituted whenever you file a claim. The amount of the deductible you choose is entirely up to you and can range from $100 to $2500. However, the formula works like this: the lower the deductible – the higher your premium; the higher your deductible – the lower your premium.
In the event you finance or lease a newer vehicle, you’ll have no option, but to purchase both collision and comprehensive coverage, to appease the dealership, leasing company, or bank holding the title to assure that their investment is fully protected in case of a loss. And, should your vehicle be stolen or considered a total loss after an incident, the maximum amount of compensation you can expect to receive from your car insurance company is the actual cash value of your vehicle, minus depreciation and wear and tear.
Although you can’t keep your car from being damaged from natural disasters, broken windows from BB-guns or your neighbor’s tree branches, you can follow a few basic tips to help reduce the risk of having your car stolen. These include:
- Always park in a well-lit area
- Never leave your car unlocked.
- Never leave the engine running while unattended.
- Don’t leave a spare key where thieves can find it.
- Never leave your windows open.
So, before you decide on whether or not buying comprehensive coverage makes sense, do the math and take the following factors into consideration.
- Can your finances afford the extra expense?
- Is your car worth enough to make protecting it from the various damage scenarios you read above cost effective?
- If your car is totaled or stolen, can you replace it easily without hardship?
Also, be aware that the more claims you file with your insurance company, the more likely they’ll be looking at you more closely. And, that could mean they put you in a high risk auto insurance category, which will dramatically increase your premiums.
Any way you look at it, most of the time, it’s better to be safe than sorry. Regardless of how lucky you think you are…odds are…bad stuff can still happen when least expected. And, a little extra protection can probably save you a substantial amount of money in the long run.
But, don’t just take our word for it, compare car insurance rates. That way, you’ll know that you’re getting the best rate on your auto insurance. Why not get a free auto insurance quote today?
Are you covered by collision and comprehensive or are you driving with the minimum state required liability insurance?