Comprehensive car insurance is the best way to protect yourself and your vehicle from excessive financial damages. There are several different types of car insurance plans from which to choose. In some states, a specific kind of coverage is required by law, like liability coverage. The legal minimum for insurance coverage may be the cheapest monthly option.
However, suppose you’re involved in a car accident or you become a victim of theft or vandalism. In that case, you could be caught off guard with exorbitant costs. The best way to determine if comprehensive car insurance is right for you is by comparing it to each alternative insurance plan. If you decide to invest, comparison tools like the iselect comprehensive car insurance tool can help you narrow your search down to just the best options.
What is comprehensive car insurance?
As the name suggests, comprehensive coverage is the most thorough type of car insurance that auto insurers can offer to their consumers. This particular type of insurance covers any damages inflicted to your car, other cars (only if you were at fault for the accident), and external property damage. If any person in either vehicle were injured in the collision, the medical expenses arising out of those injuries would also be covered by a comprehensive plan.
Some comprehensive insurance plans vary, but there are a few additional instances you would likely be covered for if you enrolled in this type of insurance plan. Examples of these instances include car theft, vandalism, and damage from a fire or natural disasters like hurricanes or floods. Comprehensive coverage typically comes with a higher premium but much lower costs in the long run if your car is ever damaged.
How does comprehensive car insurance differ from collision coverage?
Collision coverage protects your car in the event that it is damaged in a collision with another vehicle or an object. Common objects that are involved in collision claims include mailboxes, guard rails, and garage doors. If your car is damaged in any of these situations, your collision coverage will reimburse the out-of-pocket costs you’ll have to pay to repair your vehicle.
This type of coverage is usually not available until you have met your insurance company’s deductible. For example, if you have a $1,000 deductible and you have sustained $2,500 worth of damage to your vehicle, your collision coverage will pay the remaining cost once you’ve covered the $1,000 deductible first.
What does liability insurance cover?
Liability insurance is commonly required by law in areas all across the United States. Liability insurance covers damages to other people and property that were sustained at the fault of the insured. For liability insurance to be responsible for payment, the insured must be deemed legally liable for the damages in question.
Most other types of insurance pay their insureds directly. In contrast, liability insurance parties pay third parties directly. Suppose you ran a stoplight and hit another vehicle, injuring the driver. In that case, once you have been found legally liable, your insurance company will pay the medical providers directly rather than going through you.
Many people opt for the insurance plan with the lowest premiums. Unfortunately, lower monthly costs typically translate to less coverage. Even if you believe you are a great driver, you cannot control other people on the road. Even a fender bender that is not your fault could result in you being responsible for costly car repairs. In more severe cases, you could be stuck with astronomical medical expenses from an ambulance ride, emergency room visit, and hospital stay. The best way to protect yourself from unexpected costs is to armor up with comprehensive coverage.