What Does Auto Comprehensive Insurance Cover?
Auto comprehensive insurance, also called “other than collision coverage,” covers damages that are not caused by a car accident. This type of insurance coverage has a deductible. If you are making car payments, your lien holder will most likely require you to carry both comprehensive and collision coverages.
- caused by animals and damage that is caused by rocks and gravel thrown up from the road or a tree that may fall on your car.
- Comprehensive insurance covers not only damage to your vehicle, but also may cover damage to other vehicles you may be driving.
- Comprehensive insurance does not cover damages caused by a car accident. Collision coverage will take care of damages caused from a car accident.
- Comprehensive insurance does not cover losses to another person’s car. Liability insurance will take care of this damage.
- Auto comprehensive coverage will vary with different insurance companies.
- Comprehensive policies have deductibles, which is the amount you pay out before the insurance company pays the bill. The higher the deductible is, the lower the monthly premium will be.
- If you file a claim, the insurance company will pay up to the fair market value of the car. Unfortunately, in many cases, this is less than the actual replacement cost.
- The cost of auto comprehensive insurance will depend on the driver’s age, the anticipated yearly mileage, the area where the car will be mainly driven and the car’s value.