Comprehensive auto insurance coverage is a great deal for many car owners. Surprisingly, comprehensive coverage only pays a few defined problems which can be costly of course.
The following are the key benefits of comprehensive auto insurance
1. It pays to replace your car if stolen
If your car is stolen and never recovered, comprehensive insurance will pay for it. And it is even a requirement from the financier if you took a loan or a mortgage, you must have comprehensive auto insurance. For the standard comprehensive auto insurance, they only reimburse the value of your current car and not a brand new car. It is possible to find the current value of your car at NADAguides.
2. It pays to repair damages caused on your car by collision with an animal
It is a little bit confusing with auto insurance, collision coverage doesn’t cover collision with an animal but comprehensive coverage does. If your car is damaged by the collision of wild animals or any other animal, that is not covered under collision coverage but comprehensive auto insurance does.
3. It pays repairs for damages caused by weather
Hailstorms or tornado damages on your car can be covered by comprehensive auto coverage. And if it is damaged beyond repair, you will get the value for the car in comprehensive insurance. Any other damage caused by harsh weather conditions will be paid by the insurer under the comprehensive auto insurance.
4. It pays to repair flood damage
Water has the potential to destroy all the upholstery of your car interiors. This damage is considered totaled when the upholstery is beyond repair. And that is when the comprehensive coverage comes into action to pay for those repairs caused by a flood.
5. It pays to repair damages caused by fire
Car fire reports are common in traffic reports. If this happens to your car, the comprehensive coverage will swing into action to pay for repairs or replace the car if burnt beyond repair. Comprehensive coverage also covers certain events such as a tree falling onto the car and causing serious damages, damages caused by vandalism or any other falling objects.
In comprehensive coverage, there is a deductible amount that caters to depreciation every year or month. You can find this deductible amount in the insurance policy but it depends on the insurer. So, before choosing an insurance provider, search for insurance reviews to know what is in store for you in case the worst happens and how fast your claims can be settled. Some companies might use delaying tactics that disadvantage their customers.
It is a point to note that when your car is totaled, your insurance provider will not pay for the brand new car but the value of the car just before the incident occurred. This means that the value of your comprehensive coverage reduces with the age of your car. It is in your best interest to ascertain the right time to drop collision insurance in your car and the comprehensive auto insurance because it reaches the time when it no longer makes sense to pay for.