ECCB 14Online Magazine

December, 2018

What is Comprehensive Coverage?

Comprehensive coverage, also known as “other than collision” or simply “comp” covers your vehicle for physical damage brought about by anything else other than collision including;

  • Theft
  • Vandalism
  • Glass damage (broken windshield)
  • Damage resulting from hitting an animal or bird
  • Damaged caused by falling objects or missiles
  • Fire
  • Floodwaters
  • Damage resulting from severe weather
  • Damage from natural disasters such as hurricanes, tornados or wind storms

Cost of Comprehensive Coverage

There are a couple of factors that determine the cost of your car’s comprehensive insurance such as:

  • The value of your auto
  • Age of the driver
  • Where you will drive your car
  • Driver’s experience
  • Estimated annual mileage

While these may be the benchmarks for determining the cost of your auto’s comprehensive coverage, it is advisable that you shop around before settling for a particular insurer. Different insurance companies will have varying rates, and you may also consider comparing quotes online to find the cheap insurance that still caters for your needs. After all, you want a cover that will take care of your needs at the lowest possible premium.

Comprehensive Coverage and Deductibles

Most comprehensive coverage policies come with a deductible. For starters, the deductible is the amount your insurer requires that you pay out of your pocket if your car gets involved in an accident. Most of the times, the value of your car determines how much deductible you will pay – therefore the higher the car’s worth, the higher the deductible.

If you are looking for ways to save on your comprehensive coverage premium, you may opt for a higher deductible. However, it is essential that you gauge your ability to afford the deductible for settling for a specific amount. Keep in mind that most companies will not take up your claim unless you pay the deductible. Nonetheless, some insurance companies offer zero deductible on comprehensive coverage, so you need to check with your insurer.

Who Needs Comprehensive Coverage?

Comprehensive coverage is not mandatory in any state. Most states are concerned about the liability coverage. However, if your plan to use your car for leasing or if it is under a financing plan, the funding company will ask that you buy comprehensive coverage. You may also want to insure your vehicle comprehensively as a protection measure against possible losses.

Go for an Affordable Financing Plan

Picture a scenario where you have bought a second-hand minivan under financing, for instance. At the very least, you need to make sure that you will still have your minibus on the road even after a fatal crash. Failure to get a comprehensive cover, therefore, means that you will have to service the loan with no vehicle to show for it. Speaking of financing, be sure to visit to discover a reasonable loan scheme that can allow you to own a second-hand van without straining your wallet.

In Conclusion

If your car is old, you may choose not to purchase the comprehensive coverage. Insurance experts recommend that you take a comprehensive cover if your vehicle is worth over four thousand dollars.

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