Apart of Physical Damage Coverage, Comprehensive coverage or simply “Comp”, covers the repair of your automobile when it is damaged by a set amount of perils. A peril is a factor that can damage your vehicle such as a missile -which is any flying object. For instance, comprehensive insurance covers such perils as when your car is stolen or if the windshield is damaged, or if your car catches fire. This coverage is not required by state, but mostly new car owners get it, to insure their vehicle is covered against any of the aforementioned perils.
Having comprehensive coverage, usually means you are going to have some kind of deductible to pay in the event of a claim. A deductible is the amount you will pay, regardless of fault, for the damage done to your car. Deductibles can range from $250 to $1000 and higher depending on the value and make of your vehicle. You can even set your deductible to your liking; however, a higher deductible can lower the cost of insurance premium, as you are taking on more of the costs in the event of a claim.
Should you buy comprehensive coverage?
- If your car is financed or leased, having comprehensive coverage is usually required as a condition of lease.
- If you have a newer vehicle or one in good condition, you may need this coverage to pay for the varying perils that may occur.
- If you have an older car or one in poor condition, opting for this coverage may not be such a good idea and may be even denied by your insurance company.