It is no secret that your vehicle can get damaged or stolen. And this is where the role of comprehensive insurance for cars comes into the picture. Comprehensive Insurance for vehicles is the coverage that promises to repair or replace your vehicle if it gets damaged due to natural calamities such as floods or fallen trees. Moreover, comprehensive insurance also ensures the recovery of your car if it gets stolen.
Here it is worth mentioning that if your car gets damaged due to the collision, comprehensive coverage will not cover the loss.
What is covered by comprehensive insurance?
As we have already discussed, comprehensive insurance is not responsible for covering the losses that occur due to the car’s collision; here are the losses that it covers.
- Your car damage occurs due to civil disturbance, riots, or protests.
- Natural disasters such as floods, hurricanes, earthquakes, fallen trees, fires, or tornadoes.
There are various ways in which your vehicle can take on damage during a disaster.
❏ Complete or partial damage to your car if a tree falls on it.
❏ If your vehicle is sunk in a flood and gone for an offhand swim.
❏ Someone has stolen your vehicle at the time of the disaster, etc.
- It is quite possible to face car damages—such as when young children break your car’s window.
When you have tracking information of such activities, you can easily provide them to your insurance company because damage to a property is a common vehicle Insurance claim.
Note: It also includes the damage made to your car by animals.
What is not covered by comprehensive insurance?
Few things are not covered by comprehensive insurance and fall under the category of collision coverage:
- When your car takes damage as a result of an accident or collision.
- Comprehensive coverage will not cover the loss if damage occurs to another person’s vehicle from a collision.
- It will also not cover the medical expenses in case of an accident or collision.
What is deductible in comprehensive insurance?
Before opting for this insurance, you should have a clear idea of deductibles. It simply means that you also have to spend some of your money that will combine with the funds provided by the insurance company, and your loss will be covered by combining both amounts.
For example, if $1,500 is required to repair your car, the company will ask you to pay $500 as deductible, and the remaining $1,000 is covered by the insurance company.
Collision coverage and comprehensive insurance are the two different forms of insurance. Both of them protect your car. However, the areas not covered by comp. insurance for vehicles are most often addressed by collision coverage.
The significant difference between them is that comprehensive coverage for cars only covers the losses that occur when the vehicle is not being driven by someone, such as theft, hail, or fallen trees.