Comprehensive car insurance is one of the most comprehensive types of coverage available, and it's usually cheaper than most other types of coverage. It covers the maximum amount based on the actual cash value (ACV) of your vehicle, minus the chosen deductible. While collision coverage pays for repairs to your vehicle after a car accident, comprehensive insurance coverage generally protects your vehicle while it's parked. It also covers some of the gaps in the typical collision insurance policy, such as if you hit an animal while driving.
Do You Need Comprehensive Car Insurance?
At first glance, the answer to this question seems obvious. For a few hundred dollars a year, who wouldn't want to protect their vehicle against any and all potential threats? However, since comprehensive insurance can account for up to 30% or 40% of annual premiums, it's important to weigh the benefits of taking it into account against the annual cost, especially if you have an older car. Knowing the average costs gives you an idea of what to expect, but it's just a starting point for a young driver looking for affordable car insurance. It's important to note that your age won't affect your premium if you live in Hawaii, as state regulations prohibit auto insurers from using age as a qualifying factor.If you have bad credit, one insurer might charge you 10% more for the policy, while another would charge you 40% more. Comprehensive car insurance covers damage to your vehicle that is the result of theft, natural disasters, or just plain bad luck. If you decide to repair a wrecked car, your insurance company will subtract the scrap value from your payment. According to recent data compiled by the Insurance Information Institute, the average cost of comprehensive insurance in the U.
S. is $1,192 per year or $99 per month. These are average rates and your rate will vary depending on your personal details, the state and the insurance provider.
GET COVERAGE RATES FROM MAJOR INSURANCE PROVIDERS
While comprehensive car insurance is the Rolls-Royce of car insurance, that doesn't necessarily mean it's the right choice for all drivers.Rather, it's important to evaluate the peace of mind of having comprehensive coverage with its financial cost before adding it to your larger auto insurance policy. Here's a brief introduction to comprehensive car insurance to help you understand what you're buying and if it's the right option for you. The table below shows the annual and monthly average of the total coverage premiums of some of the country's largest auto insurance companies, by market share: When considering whether or not comprehensive car insurance is right for you, it's important to consider both its financial cost and its peace-of-mind benefits. While comprehensive coverage can be expensive in comparison to other types of coverage, it can provide invaluable protection against theft and other unexpected events that could leave you without a vehicle. It's also important to shop around and compare rates from different providers before making a decision about which type of coverage is best for you.
Different insurers offer different levels of coverage at different prices, so it pays to do your research before committing to any one provider. Finally, remember that comprehensive car insurance isn't just about protecting yourself financially; it's also about protecting yourself and your family from unexpected events that could leave you without a vehicle.
