What Is a Comprehensive Coverage Policy?

What is a comprehensive coverage policy? Comprehensive coverage is just one of the many different types of protection you can obtain on your insurance policy. It will cover repair expenses if your vehicle is damaged as a result of an accident. Comprehensive coverage covers damage to your vehicle resulting from hail, vandalism, theft, etc.

The Importance of Comprehensive Coverage

Comprehensive coverage insurance is important for many reasons. There are many reasons you should consider purchasing this particular coverage. First, it can be used no matter who causes an accident. It also helps to cover your repair expenses over your deductible. This means you will not be responsible for coming up with the entire bill amount on your own. Comprehensive coverage is also important to have because, believe it or not, many lien holders will require you to have it.

What Does Comprehensive Coverage Cover?

Comprehensive coverage will cover any damage to your vehicle that was not the result of a collision with another vehicle. Comprehensive coverage is also known as “other than collision” coverage. This simply means that comprehensive coverage will cover you in the event your vehicle is damaged as a result of:

  • Glass breakage
  • Theft
  • Storms
  • Hitting an object or animal
  • Fire

How Is Comprehensive Coverage Different Than Collision?

Both comprehensive and collision coverage can be used to cover damage caused to your vehicle due to an accident. Both coverage options include a deductible, but you will still be liable for covering any expenses before the policy starts. These coverage options also have differences among them. Here are a few examples of when comprehensive coverage applies:

  • Your car becomes damaged in a storm
  • Someone steals your car
  • You hit a deer with your car

Here are some examples of when collision coverage applies:

  • Another car hits your vehicle
  • You swerve to miss hitting a dog but instead hit a person’s fence
  • You have a single-car loss that causes damage to your car

How Does a Comprehensive Deductible Work?

The amount that you agreed to pay prior to the insurance company paying for any damages is known as your comprehensive deductible. This is pretty much the same as the amount of financial risk you are willing to deal with if you are involved in an accident. The higher the deductible is, the lower your insurance premiums will be. The lower your deductible, the higher you will pay for your insurance premiums. For instance, if your vehicle sustains $1,000 in damage from a hailstorm and your deductible is $100, you will be responsible for paying the $100, and your insurance company will cover the difference.

If you are in the market for comprehensive insurance, contact the agents at Harvey Sarles. They have over 30 years of experience and are ready to help you with any of your auto-insurance-related needs!

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