Top Reasons To Buy Comprehensive Insurance

As you're comparing auto insurance policies, it's worth spending some time to consider if comprehensive insurance is right for you.

 

About Comprehensive Insurance

When shopping for car insurance, many people find themselves wondering about the difference between collision coverage and comprehensive insurance.

Collision coverage is a type of physical damage protection that provides reimbursement when your vehicle collides with another car or a stationary object, and comprehensive coverage provides reimbursement for other scenarios which can cause a need for repairs.

For example:

• Floods

• Storms

• Hail damage

• Falling trees

• Theft

• Fire

• Vandalism

• Damage caused by animals

Collision coverage is often sold with comprehensive insurance and referred to as a full coverage insurance policy. However, it is possible to purchase these two types of insurance separately if you wish. State financial responsibility laws do not apply to purchasing collision coverage or comprehensive insurance, but your lender will probably require this type of car insurance if you used a loan to purchase your vehicle.

 

Top 3 Reasons to Buy Comprehensive Insurance

When determining if you have adequate auto insurance, there are several different factors that you should use to assess the need for comprehensive coverage on your vehicle.

1) Your Car Has a High Resale Value

If you didn't use a loan to purchase your vehicle, comprehensive insurance is not required. If your vehicle is relatively new and still has a high resale value, however, you should consider buying comprehensive insurance simply to protect your investment. Even after paying your deductible, comprehensive coverage will still be easier on your wallet than having to spend $15,000 or more to buy a new vehicle.

To get an idea of how much your vehicle is worth, you can check the Kelley Blue Book value.

2) Your Vehicle Is a Target for Theft

Many people think that only expensive luxury cars are targets for theft, but older vehicles are often prime targets for theft because there is a great demand for their parts.

Vehicle theft rates vary by state, but overall a vehicle is stolen in the United States once every 33 seconds.

3) You Can't Predict the Future

If you're a cautious driver with no history of auto accidents, you may think you need only minimal insurance coverage. However, nobody can predict when a vehicle is going to be damaged by storms or falling trees.

Having comprehensive insurance saves you the trouble of having to come up with the cash for these types of unexpected vehicle repairs.