Comprehensive Insurance & Comprehensive Coverage

Comprehensive Insurance & Comprehensive Coverage. In this article, we’re going to talk about what it means to have comprehensive insurance for your vehicle.

Comprehensive Insurance & Comprehensive Coverage

We talked in another article of this blog about having collision insurance and so collision is basically going to cover any kind of accident that does damage to your vehicle.
So collision is for your vehicle and then we also talked before about how liability insurance terms of property damage bodily injury cover the damage that you can do with your vehicle to other people.
We’ve got liability is affecting other people or other vehicles and then collision was affecting your vehicle but not all damages that occur to your vehicle are covered under collision because the collision is basically like you have an accident there’s damage done to your car you’re going to have it repaired.
However, there’s non-collision damage which is a number of things we’re going to talk about which are covered by comprehensive insurance.
Basically, all the things that aren’t covered by collision all the non-collision things the bad things that could happen your vehicle and an earthquake a fire a flood all those things there’s not really an accident with another vehicle but it’s non-collision damages is how we turn to tend to think of it.
The examples are some of the things that are comprehensive insurance we think about there’s a hailstorm that does damage to the hood of your car there’s a flood or something like that wind maybe a windstorm knocks down a branch and it falls on your car and causes damage your car could be set on fire.
There could be a riot someone might steal your car so you might have the car was stolen that’s not going to be covered under collision that’s going to be under this comprehensive coverage.
So with theft we also have to think about something like your car stereo might not be covered so it depends on what type of comprehensive policy you have with your auto insurance carrier.
So bear in mind that something inside the car like a stereo might not be covered so read your policy but if the car itself is stolen that’s theft or if it’s vandalized that would be covered under your comprehensive policy.
Hitting an animal with your vehicle although you might that it would be collision it’s actually not it’s not going to be covered by collision.
Even though you might say it’s logical that you’re hitting something with your car it’s it is a collision but it’s not going to be covered by collision insurance that’s going to be covered if you have comprehensive insurance if you hit a deer or something like that’s going to be a part of comprehensive insurance.
Now when you have glass breakage that’s going to be a little bit tricky so glass breakage if it’s part of a car accident.
So somebody hits you they’re at fault or your fault, you have a car accident the glass breakage potentially could be part of a collision claim so you could put it together depends on what’s your particular policy what the stipulations are.
But in some cases it’ll be optional to put it under collision if its part of an accident the reason being then you avoid getting hit twice with two different deductibles.
There’s an important point that I want to mention which is similar to collision insurance, comprehensive insurance has a deductible so there’ll be a deductible of $500 $1,000 something like that which is basically saying so let’s say you have a deductible of $500 that’s saying whenever you submit a claim you’re going to have to pay the first $500 in damages.
The insurance company is not going to cover the first $500 they’ll cover everything after that so similar to collision we’ve got a deductible.
Another point if so comprehensive and collision neither of them is what term mandatory minimum insurance so when we think of in the United States most states have whether some kind of mandatory minimum insurance that’s usually for a liability.
So doing damage to other people’s vehicles but comprehensive is also similar to a collision if it’s not part of that legal mandatory minimum insurance that you need to be legally compliant to be driving a car or truck.
So that’s just an AR, it’s optional it’s something that you would decide to buy and just like collision just to give you that extra assurance if you have damage done to your car.
Now let’s get an example of comprehensive insurance just to understand how it works so your car is stolen let’s say that car had an appraised value of $6,500 similar to collision insurance.
The insurance company is going to have some kind of appraised value that they use from the Blue Book or something like that they’ve got some appraised value, in this case, it’s 6500 dollars and you’re trying to figure out how much money you’re going to get from your insurance company because you’ve just suffered a loss your cards been stolen.
If you don’t have comprehensive insurance you just lost a vehicle you won’t be able to get any coverage from liability or collision or anything like that.
Let’s say you’re fortunate you’ve got comprehensive insurance and you have a $1,000 deductible so now you want to know what happens so basically is it’s quite simple so we say that you’ve got a $6,500 value of the car but remember there’s a thousand dollar deductible.
So you’re out you eat the first thousand dollars right the insurance company doesn’t have any part or deal with that.
So that’s your part and you have 5,500 after taking away your deductible, after deducting it from the appraised value of the vehicle you’re left with $5,500 so what’s going to happen your insurance company because you don’t have a car there’s obviously no repairs that can be done it’s been stolen so you’re going to receive a check for $5,500 that’s going to be your payout from your insurance company based on your comprehensive coverage.
I think you have something batter learnt about Comprehensive Insurance & Comprehensive Coverage.

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