When people think of full coverage they usually think of collision and comprehensive coverage. Most have trouble understanding what the latter is for and if they even need to have it. Well the simple truth is that it is a very important part of an auto insurance policy. It is probably the most broad coverage when it comes to insuring your vehicle.
What Does Comprehensive Insurance Cover
To put it very simply comprehensive insurance covers anything other than collision. Which is why it is sometimes referred to as “OTC”. Some things that are covered under it are theft, vandalism, rock slide, and pretty much anything else that is not related to two vehicles crashing into each other. It is important to have this kind of protection because it can replace your vehicle if it is stolen or pay to have it repaired if it is vandalized.
How Does Comprehensive Insurance Work?
The way comprehensive insurance works is pretty simple. If you file a claim because of theft or even damage to your car as the result of vandalism you will be responsible for paying the policy deductible. The amount is determined at the time of purchase, so it is important to select one that is affordable for you. The insurance company is responsible for paying the remaining balance, so lets say there was a $6,000 body shop bill and you had to pay the first $500 the carrier would pay the remaining $5,500. Or if your vehicle was stolen and it was determined to be worth $10,000 the insurer would pay you $9,500 so you can purchase a similar one.
How Much Does Comprehensive Insurance Cost?
The amount you will pay for comprehensive coverage will vary depending on a few variables. Some of the things that effect the price are they value of the vehicle you are insuring, the area where you live, driving experience and your driving record. If you have a high end car you will pay a little more than if you had an economy size car because the insurance company is going to have to pay out more money if your car is stolen or needs to be repaired. Also if you live in an area that has a high rate of vehicle thefts you will probably have to pay a little more. A good way to get the price down is to get an alarm system installed as many companies offer discounts because it will be easier to deter a would-be automobile thief and save the carrier from having to pay out a claim. 2autoinsurance.com offers free quotes for comp coverages, simply enter your zip code at the top of any page on our site.