Comprehensive Insurance Cover: A Breakdown

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Understand What Comprehensive Coverage Means and How It Helps You

We’re sure you already understand the need to insure your car. Apart from being required by law in many places, it is also the smart thing to do to ensure your peace of mind. In case you’re involved in an accident, you can count on your insurance to take care of any costs and expenses that may have to be borne instead of paying for it all yourself. There are basic insurance plans that only offer coverage under very specific circumstances and comprehensive insurance plans that cover a wide array of situations.

If an untoward situation occurs, then a comprehensive cover will pay for the damage to your vehicle that is not caused by the collision. This means you are covered in case of any of the following situations:

  • Vandalism
  • Theft
  • Animal accidents
  • If a tree branch or debris falls and damages your car
  • Civil commotions, fires and explosions
  • Weather events like floods, hail, etc.

Remember, whenever you claim for anything covered by the insurance, you are responsible for paying the associated deductible.

Customize the Comprehensive Cover

You should check if the insurance policy covers your car’s actual cash value or its replacement costs. This is important. If it covers cash value, then it covers the value of the vehicle as it is at the time of the claim- not the amount you paid for the car. To find a way around this, you could purchase gap coverage, new car replacement cover, or a vehicle value upgrade. These options can offer more protection than a standard comprehensive cover for your car.

The Limit of A Comprehensive Cover

There is a certain amount of money you have to pay before your comprehensive insurance cover activates. This amount is called a deductible. You should know that you have options when selecting this deductible amount. You can lower your comprehensive cover rate by choosing a high deductible. But you should be sure of your ability to pay that amount out of your own pocket in case you need to file a claim. If you keep your deductibles low, your insurance rate may increase but it will also cover more costs in the event of an accident.

Read as much as you can about insurance cover. Speak to your agent. Ask them a lot of questions. And don’t be in a hurry to buy insurance. Study the details with patience and make a good informed decision that will save you money now and save you many headaches in the long run.