As you might already know, it is considered a legal offense to drive around without proper auto insurance in most states and countries. Comprehensive car insurance is vital whether you just bought a used car or a new one.
However, there are also many different types of car insurance in Texas, including collision, auto liability, and the famous comprehensive coverage.
Comprehensive coverage is not mandatory in most states, although car leases and lenders might require it.
You might also be wondering whether comprehensive car insurance is necessary and whether it is worth the cost. The pointers below might help you decide whether to get it or skip it!
What is Comprehensive Insurance?
The simplest definition of comprehensive insurance is the coverage that protects your vehicle from damages beyond what a collision insurance policy can cover. This is perhaps why it is called “other than collision” coverage.
While a collision insurance plan covers damages from hitting an object or another car, comprehensive insurance covers car repair costs (or replacement) from other issues. For instance, it can cover the costs if your car is stolen or suffers damages caused by a fallen tree, fire, or a storm.
You can request a comprehensive car insurance quote on the web to find out how much it costs, but more on this later. When do you need it?
When To Consider Comprehensive Insurance
Comprehensive car insurance is worth considering in so many scenarios. For instance, it can be a great choice if you live in an area prone to car theft, vandalism, or bad weather.
Moreover, you may also want to consider the age of your car and its mileage, treading carefully because modern vehicles may cost more to repair in case of unexpected damages.
If 10% of your car’s current market value is more than the premium when deductibles are subtracted, comprehensive insurance can be a great idea. In a nutshell, it is worth considering comprehensive coverage for a car you just bought if:
- The coverage costs are minimal
- You regularly traverse or park in a theft-prone or dangerous area
- You can’t afford vehicle repairs in case of damage
- Your driver is under 25 years of age
- Your locale experiences frequent bouts of extreme weather
The Actual Cost
The cost of comprehensive auto insurance may vary widely from one state to another. However, it averages about $160 a year if reports from NAIC are anything to go by.
Also, your car insurance provider may ask you to select a deductible amount of your choice, which often ranges between $500 and $1500.This is the amount you can foot for vehicle repair before filing a claim with the policy provider.
Most insurance providers will provide payouts for vehicles deemed a total loss and beyond repair. Based on the policy terms, you can replace a stolen car or be awarded the car’s actual cash value.
The general rule is that higher premiums attract lower deductibles, and lower premiums attract higher deductibles.
Is it Worth The Money?
Comprehensive motor car insurance is indeed worth the investment in so many ways. It covers damages and losses caused by uninsured events, from theft to weather damage, fires, etc. Once you assess yourself and find out you need it, there is no reason to hesitate to get an affordable car insurance deal.