If you own your vehicle outright, comprehensive coverage is optional on your car insurance policy. So, why consider comprehensive coverage? Well, could you afford to repair your car if it were damaged in a hailstorm?
Or what if you hit a deer? In these types of situations, comprehensive coverage may help pay for costly repairs, up to your coverage limit. The limit is the maximum amount your insurer will pay for a covered claim. The limit for comprehensive coverage is typically the depreciated value or the actual cash value of your vehicle.
Say your car is stolen or totaled in a covered claim. Your insurer would cut you a check for the car's actual cash value. If you wanted to replace your totaled car with a new vehicle that costs more than your insurance reimbursement, you would have to pay the balance out of your own pocket.
Another key thing to know about comprehensive coverage is that it has a deductible. A deductible is the amount you pay toward a covered claim. Now you have a little more information on the benefits of comprehensive coverage and how it works.
Contact an Allstate agent. When you drive with quality coverage, you drive with peace of mind. Allstate auto insurance can help you stay protected for wherever the road takes you. Damage to your car from a collision Damage to another person's vehicle from a collision Your or your passengers' medical expenses after an accident.
When you purchase comprehensive coverage, you will select a set deductible , which is the amount you pay out of pocket toward a covered claim. Comprehensive coverage has a limit , or the maximum amount your policy will pay toward a covered claim.
The limit on comprehensive coverage is typically the actual cash value of your vehicle. If your car is stolen, for example, your insurance company would reimburse you for your car's depreciated value, minus your deductible.
In other words, if you wanted to replace your stolen vehicle with a newer make and model, you would likely have to use some of your own money to do so, in addition to using the reimbursement from your insurer.
Keep in mind that the comprehensive deductible and limit are separate from your policy's collision deductible and limit. Choosing a higher comprehensive deductible generally means your premiums will be lower, which can save money upfront. However, you may have to pay more out of pocket toward a covered claim.
If you are interested in required coverage that covers damages to other vehicles or property if you are found at fault in an accident , you may want to learn more about liability insurance. Get more help deciding on the right type of auto coverage for you with these car insurance resources. Clipboard-flat Claims Envelopes-flat Pay a bill. All insurance products ». For your ride.
Life Pet Dental Umbrella Identity theft. Accident medical Specialty liability Travel Wedding. All financial goals ». Investing insights. See banking services provided by Axos Bank ». If not, comprehensive coverage may be worth the cost for you. If you have an older car with a low fair market value, you might consider skipping comprehensive coverage and lowering your car insurance premium.
To help you decide whether comprehensive coverage would make sense for you, look up the estimated market value of your car.
Comprehensive insurance could be a worthwhile investment, especially if you have a newer car with a high market value and want to protect your finances in the event of vandalism, a natural disaster, theft or contact with an animal. Remember that it pays to do research before choosing an auto insurance policy. Shop around and compare car insurance quotes to find the policy that best fits your needs.
Image: Man and woman sitting together at their kitchen table, looking at a phone together. In a Nutshell Comprehensive insurance can help pay for vehicle repairs or replacement after some noncollision events, such as vandalism, natural disaster or animal contact. Both coverages have a deductible you are responsible for paying before the coverage starts covering the damage. The coverages differ in the situations in which they apply. A comprehensive deductible is the amount you've agreed to pay before the insurance company starts paying for damages.
You can think of it as how much of the financial risk you're willing to take on if you're in an accident. Typically, the more risk you're willing to take higher deductible , the lower your insurance cost would be. The less risk lower deductible , the higher your insurance costs would be. If you have an older vehicle, you may want to consider whether you need comprehensive coverage as it is normally limited to the actual cash value of your car.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance.
We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages. We're here for you 24 hours a day, 7 days a week.
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