What is comprehensive insurance?
Today, this article gonna answer what is comprehensive insurance. Your auto insurance policy has two coverages, one is collision and two is comprehensive. Comprehensive encompasses all claimed that are not collision with another object.
Some examples of a comprehensive claim would be fire, theft, vandalism, flood and wind damage. Many times comprehensive coverage is also referred to as other than collision because it covers all damages to your vehicle that are not a collision with another object.
Many times you will also have a deductible and have to pay this out-of-pocket before the insurance company reimburses you for those losses. That is What is comprehensive insurance simply.
How about Comprehensive Auto Insurance Coverage Works
After we talking about answer of What is comprehensive insurance, we’re going to talk about what it means to have comprehensive insurance for your vehicle. We talked before about having collision insurance and 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 covers 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 collision is basically like you have an accident there’s damage done to your car you’re gonna 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 so it’s non collision damages is how we turn to tend to think of it.
For The example, here 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 right so you might have the car stolen that’s not going to be covered under collision that’s going to be under this comprehensive coverage. With theft, we also have 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.
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.
Let’s get an example of comprehensive insurance just to understand how it works. Your car is stolen, let’s say and that this car had an appraised value of $6,500 right. Similar to collision insurance the insurance company is gonna 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 gonna get from your insurance company because you’re you’ve just suffered a loss your cards been stolen. so you have comprehensive insurance if you don’t have comprehensive insurance well then 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. 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 eat the first thousand dollars. The insurance company doesn’t have any part or deal it that right so you that’s your part and so 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. 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. That’s What is comprehensive insurance and how comprehensive insurance works.