5 Reasons You Should Invest in Comprehensive Auto Insurance

There are a lot of different options out there when it comes to auto insurance. Comprehensive car insurance is one option that is of the utmost importance if your car holds value, or if you owe money on it.

Car insurance companies are ready and waiting to send you quotes for coverage as soon as you put your ZIP in the FREE box!

Comprehensive coverage can certainly add a lot to the price of an auto insurance policy. Smart Money maintains that optional coverage such as collision and comprehensive can account for 30% to 40% of your premiums. However, such costs are an investment in protecting your vehicle.

There are only a limited number of reasons why you should not have comprehensive coverage. For the majority of drivers however, the immediate savings can really put your finances at risk. Dropping this coverage is generally not a sound way to lower car insurance costs.

Comprehensive Auto Insurance Defined

Comprehensive does not cover anything other than your vehicle.

It is the coverage type that provides funds to fix your vehicle when damage occurs from something other than a car accident.

Furthermore, is generally an option rather than a requirement for your car insurance policy. However, it is a good option to have.

While no one plans to have an accident, no one plans to have a loss through any of the events that are covered by comprehensive, either! According to the Insurance Information Institute, comprehensive coverage may pay for damages from events such as:

• Extreme weather, such as hail, flood and wind
• Hitting a deer or other animal
• Disasters such as a fire or earthquakes
• Theft
• Unusual acts like vandalism, riots, missiles, falling objects or explosions

It is important to check your policy to find out exactly what events are covered by the comprehensive section of your policy. Each insurance provider’s coverage will vary.

Generally, comprehensive coverage also includes a deductible. The deductible is an amount that is your responsibility to pay before your provider pays anything. Commonly, deductibles range from $250 to $500, but you can choose a higher deductible to lower the cost of comprehensive coverage.

The only good reason not to have comprehensive is if you drive an old beater, and you can afford to either pay for damages, or to lose it in a crash. Conversely, there are many reasons why you should pay for this coverage.

Reason #1: You Have a Lien on the Car

The first reason why you should invest in comprehensive coverage is that you may be required to do so.

Typically, any lending institution that will give you a car loan will require that you carry comprehensive coverage.

The lender will want to see proof of coverage from your insurance company before signing off on the loan.

Generally, you will have to sign an agreement as part of your loan promising that you will maintain comprehensive coverage on the vehicle. Your company may report to your lender if you drop the coverage. Then, your lender may repossess the vehicle if they feel the need to do so. Under your agreement, you gave them this right in order to protect the vehicle’s worth.

Comprehensive coverage protects the lender’s asset until you pay off the loan. They want to be assured that the vehicle will be operable while they still own it.

Once you pay off the loan, you have the option of dropping comprehensive coverage if you want. However, such a move is generally not recommendable. The National Association of Insurance Commissioners only recommends dropping optional coverage such as comprehensive if your vehicle is worth less than $1,000.

Reason #2: Your Car is an Asset

One of the main reasons why you buy vehicle insurance is that your car is an asset. Most vehicles are worth a substantial amount of money, ranging from many thousands of dollars and beyond. This is money that you have invested in that vehicle; a car represents your hard-earned dollars. Without comprehensive coverage, that investment can be considerably lessened by unforeseeable events.

If you suffer a loss through non-accident means, comprehensive coverage is the only coverage option that will pay to fix the vehicle.

Unfortunately, that can mean that minor or cosmetic dings or dents remained unfixed without comprehensive coverage. This essentially lowers the overall value of your vehicle. Fair market value of your car takes into account the condition of your vehicle in setting its worth.

Furthermore, your vehicle is also an asset in that it helps you to get through the day-to-day requirements of life. Most people need their vehicles to get to work. Cars are also essential for running errands, getting to important appointments and even enjoying vacations.

Without comprehensive coverage, your life can be seriously interrupted by something as simple as a deer that crossed the road at the wrong time, or as potentially devastating as a storm or flood. Comprehensive coverage ensures that you will be able to get your vehicle fixed quickly after a claim so that it remains an asset.

Reason #3: Repairs and Replacement are Expensive

Everyone understands the high cost of repairing a vehicle. Insurance is meant to make you whole after an accident or other loss.

Comprehensive coverage makes sure that you can afford to get your vehicle repaired after an event other than an accident.

Even seemingly minor repairs can run into the hundreds and thousands of dollars. Most people do not have the money on hand to pay for such repairs on their own. Without this coverage, you would have to pay for repairs completely out of pocket. Comprehensive coverage will ensure that all you have to pay is your deductible.

Furthermore, comprehensive is also the coverage that pays if your vehicle is stolen. Again, few people can easily replace a car that just vanishes into thin air. There is no other coverage that will pay to replace your car if your vehicle is stolen. While vehicle theft rates are going down, that statistic won’t really matter to you if your vehicle is stolen. Many people believe that a car theft won’t happen to them, but you can bet that everyone who has ever had a vehicle stolen now makes sure to carry comprehensive.

Reason #4: You Need it to Rent a Car

Another good reason why you should have comprehensive car insurance is that it is necessary coverage to have if you want to rent a car. Rental car agencies want to ensure that damages to their vehicles will be fixed, so you will need to provide coverage for events other than an accident.

You can certainly pay for the coverage at the counter, but such costs can really add up. You can expect to pay $20 or more per day for insurance that covers non-accident related events at the rental car counter. This need for comprehensive coverage when renting a vehicle also includes renting a moving truck.

Reason #5: Other Benefits Accompany the Coverage

The last reason why it is a smart idea to purchase comprehensive auto insurance is that it may include other benefits. Every auto insurance company will have different coverage for comprehensive, and you may be able to find a provider who has additional services for those who buy such coverage.

While adding this coverage won’t give you the cheapest rate, the additional expenses such as rental car reimbursement or towing may be part of a comprehensive package. Such coverage options are often overlooked, but they are worth their weight in gold if you need the coverage.

Towing can cost a few hundred dollars and rental cars can cost $50 or more a day to rent. The website Wiser Drivers maintains that the average vehicle is in the shop for two weeks for repairs for damages. At a cost of $50 a day, it could cost you $700 to rent a car for two weeks while yours is being repaired.

Many car insurance companies also include auto glass repair or replacement as part of comprehensive coverage. Oftentimes, the deductible doesn’t even apply to auto glass repair or replacement. If you get a spider web crack or your windshield needs to be replaced, comprehensive coverage will ensure that it can be fixed quickly and easily.

Furthermore, some car insurance providers may include roadside assistance as part of comprehensive coverage; this coverage can be vastly important when you’re stuck on the side of the road with a flat tire or an empty gas tank.

Some even include lost key replacement or unlocking your car if you have locked your keys inside as part of comprehensive coverage.

Comprehensive coverage is truly an investment that pays off in the long run. You may pay a bit more now in your monthly premium, but you will save in the event of unforeseen damage. You pay to ensure that your vehicle’s value is protected and that its safety and operability are always assured.

Make sure that you include comprehensive coverage as part of your car insurance policy when you search for a provider by placing your ZIP code in the FREE finder box now!