Comprehensive covers your vehicle and other vehicles you may be driving for losses related to incidents other than collision. For example, comprehensive insurance covers your car if it is stolen or damaged by a break in, flood, or fire damage. The coverage provides money to fix your vehicle in these scenarios, minus the deductible you have chosen. The higher the deductible you choose the lower your premium will be because you are taking on more of the financial burden, should something occur. For instance, someone who chooses a $500 deductible will pay a higher premium than someone who chooses a $2500 deductible, but will pay less should there be damage to the vehicle.
Who Needs Comprehensive Coverage?
Comprehensive coverage is not necessary for everyone. It is not required by law, but it is a good idea if you are driving a newer or higher value car. In some cases when drivers have used financing to purchase their vehicles, comprehensive insurance might be a necessity. This protects the lender should the car be stolen or damaged beyond repair. Before making a decision about coverage, consider how valuable you consider your vehicle. Drivers who drive old, low value vehicles are less likely to choose comprehensive coverage than those who have high-end, expensive vehicles.
Making Your Decision
The best way to determine if comprehensive insurance is worth the cost is to think about the risk associated with your vehicle. If you have invested in an expensive car that would lose a great deal of value if it were damaged, you want comprehensive coverage. If you are driving an older car that can take a few dings and scratches, but still perform exactly as intended, comprehensive coverage is not necessary. If you would rush to the service station to repair cosmetic damage to your vehicle, comprehensive insurance is a good idea. Often, on older cars, dings and scratches are just “adding to the character” of the vehicle and are not considered a huge deal by drivers. Evaluating the current state and value of your vehicle is the best way to determine whether or not you need comprehensive coverage when choosing an insurance policy.