Cheap Comprehensive Insurance

Comprehensive physical damage insurance is there to pay for damages resulting from a non-collision event. You may hear this type of insurance referred to as plain comprehensive or you may have heard it called “other than collision” protection. Comprehensive comes to the rescue when unexpected things happen to your vehicle, leading to damage or total loss.

This type of coverage can be purchased on its own or as part of a full coverage car insurance package, which also includes liability and collision coverage. Do you need it? Your friendly Velox agent can help you decide if adding comprehensive is a good choice for you.

It steps in to pay for repairs when your vehicle is damaged in a qualifying event. If your vehicle is totaled or stolen, comprehensive pays out the actual cash value (ACV) of your automobile. This is the depreciated value so keep in mind you may still owe money to your financer if you have not paid it off.

Comprehensive is part of full coverage car insurance. This includes your required liability, plus collision and comprehensive. However, you can purchase it as a stand-alone if you own your car outright.

In Georgia, this type of coverage comes in at an average of $263 per year. The average annual cost of full coverage is $2,718 here, so your comprehensive is about 9.6% of a total full coverage package. Your quote will be different from these amounts since it is based on your unique profile, such as how old you are, your gender and your driving record. If you own your ride, should you get comprehensive? Let’s examine some reasons why comprehensive is a good idea.

This type of coverage comes with a deductible. A deductible is the amount you will pay for a covered event, with your insurer picking up the rest. The higher you set your deductible, the lower your premium and vice versa. So, for example, you may choose to set your deductible to $500. If you have a covered event with repairs worth $4,000, you’ll kick in $500 and the agency will pay $3,500. If your car is a total loss or stolen, you’ll receive the ACV minus your deductible.

Typically, you can only add as much coverage as equals your ACV.

It is defined as covering events not described as collisions. That can be a bit tricky because one thing it does cover is damage caused by hitting an animal. This is considered out of your control, so it falls under the policy. However, if you swerve to miss an animal and hit a tree? That’s covered by collision insurance and not comprehensive.

Here are some other examples:

• Mother Nature: A storm blows through and not only do you have hail damage, a tree lands on your car. Both of these, as well as fire, are covered under this type of policy.
• Your Car is Stolen or Vandalized: If your vehicle is stolen or even if it just vandalized, you policy will cover you for the ACV or the repairs.
• Windshield Replacement: A trucker going way too fast rocketed a pebble into your windshield. This is covered under comprehensive.
• Under Water: And we don’t mean on the value and how much you owe, but literally your ride is under water due to a flood. This is covered.

Keep in mind your insurer will only pay the ACV if your vehicle is totaled or stolen. Depending on your financing arrangements, down payment and how long you’ve had it, you may still owe money to your lender. This is why GAP insurance may be a good idea until the amount you owe is level with the ACV.

Comprehensive helps to pay for damages or total loss after a covered event. It does not have collision coverage. There is another type of insurance for collision-related events. Here are some other situations that are not covered:

• Another person’s vehicle
• Medical expenses
• Routine maintenance

These are some of the things that are not covered. However, if your vehicle routinely makes the list of “Top 10 Stolen Vehicles” it may be a good idea to include this type of insurance. Likewise, if you live in an area prone to storms or you do not have a garage to park in for safety.

There is a simple way to determine if this policy is worth the cost. Use a site like Kelley Blue Book to arrive at a rough estimation of your car’s ACV. Once you have this amount, subtract your deductible and the six-month premium. If the result is more than you would be able to come up with comfortably out of pocket, comprehensive may be right for you.

In other words, if your ACV is a high number and your 6-month premium is $131, it’s probably a good idea to be protected for as long as the car is worth more than you can come up with if it is stolen or you sustain severe damage. Speaking with your friendly Velox agent will help you understand your options and what makes the most sense.

One is mostly for events that happen when you are not behind the wheel and one is for any type of collision, whether that’s with another vehicle, a fence, or even a single car rollover. They are both part of the full coverage you may be required to purchase if your vehicle is financed or leased. They also both come with a deductible. Although you can purchase them both separately, it is more common to purchase comprehensive as a stand-alone product.

If you and your insurer do not agree on the ACV of your vehicle once it is declared a loss, you have the right to content that decision. You can pay an independent appraiser to arrive at a value and use that information to prove your point. However, if your insurer still refuses to budge, you can file a case with your state department of insurance. As a last resort, you can sue your insurance agency.