An Overview of Comprehensive Insurance

Comprehensive insurance is an auto insurance policy that covers car damages resulting from anything else besides collision. The covered damages can include vehicle destruction by a tornado, a wild animal, and more.

As always, the next step after seeking medication is to hire an auto accident lawyer in Alaska. A skilled and experienced car accident attorney will review your specific case and advise you on the way forward if you have comprehensive insurance.

Understanding Comprehensive Insurance

Comprehensive, collision and liability insurance are the common auto coverage policies. Many states require motorists to purchase liability insurance. However, collision and comprehensive insurance are mandatory. Also, auto loan companies typically require comprehensive insurance.

What’s Covered Under Comprehensive Insurance Policies 

Here are the common risks covered under comprehensive insurance policies:

Theft and Vandalism 

Comprehensive insurance covers the theft of your vehicle or any parts of it. If someone damages your car intentionally, comprehensive insurance will cover the cost of repairs.

Natural Calamities 

Comprehensive insurance covers damage to your vehicle caused by natural disasters such as hail, hurricanes, tornadoes, and earthquakes.

Falling Objects

If a tree limb, rock, or other object falls on your car and causes damage, comprehensive insurance will cover the cost of repairs.

Animal Damage 

If an animal causes damage to your car, such as by running into it or scratching it, comprehensive insurance will cover the cost of repairs.

It’s important to note that the risks covered under comprehensive insurance can vary by the type of policy and insurer, so it’s always a good idea to read your policy carefully and talk to your insurance agent to understand exactly what is and is not covered.

Comprehensive Insurance vs. Collision Insurance

Comprehensive insurance and collision insurance are two different auto insurance coverage that protects your vehicle in different ways. The former covers vehicle damages that don’t involve collisions with other vehicles like damage caused by natural disasters such as floods, storms, earthquakes, theft, and vandalism, among others. 

Comprehensive insurance also covers glass damage such as windshield cracks or chips. This coverage is optional, meaning it is not required by law. However,  it would be a good idea to purchase it for extra protection.

Collision insurance, on the other hand, covers car damages resulting from a collision with another vehicle or object, regardless of who is at fault. An object in this case can include a fence, wall, and more. 

Collision insurance is typically required for cars on loan or lease. Besides auto lenders, it may also be required under state laws.

Cost of Comprehensive Insurance

The cost of comprehensive insurance depends on many factors, such as the make of your car, driving record, age and gender, jurisdiction, and level of coverage. According to a 2021 report by the National Association of Insurance Commissioners (NAIC), the average cost of car insurance in Alaska was $775 per year for minimum coverage and $1,711 per year for full coverage. While these figures are averages, the actual cost of comprehensive insurance depends on the aforementioned factors.

Advantages and Disadvantages of Comprehensive Insurance

While comprehensive insurance provides a high level of protection, it also has disadvantages. Here are the advantages and disadvantages of comprehensive insurance:

Advantages of Comprehensive Insurance 

Protection Against Theft Comprehensive insurance provides coverage against theft, which is not covered by basic insurance policies.

Coverage Against Natural Disasters 

Comprehensive insurance covers damage to your vehicle caused by natural disasters such as floods, hurricanes, and tornadoes.

Protection Against Vandalism

Comprehensive insurance provides coverage against damage to your vehicle caused by vandalism, such as broken windows or scratched paint.

Coverage for Animal Collisions Comprehensive insurance covers damage to your vehicle caused by animal collisions, such as hitting a deer.

Peace of Mind

With comprehensive insurance, you have a higher level of protection for your vehicle and can have peace of mind knowing that you are covered in a variety of scenarios.

Higher Resale Value

Having comprehensive insurance can increase the resale value of your vehicle, as it shows that your car has been well cared for and maintained.

Disadvantages of Comprehensive Insurance

Higher Premiums Comprehensive insurance typically has higher premiums than basic insurance policies, which can be a financial burden for some policyholders.

Deductibles

Many comprehensive insurance policies require policyholders to pay a deductible before coverage kicks in. This means that if you file a claim, you will have to pay a certain amount out of pocket before the insurance company covers the rest.

Exclusions

Even with comprehensive coverage, there may be certain events or damages that are excluded from coverage, such as intentional acts or damages caused by normal wear and tear.

It’s essential to understand the terms and conditions of your comprehensive insurance policy. In other words, ensure you know the risks that are covered and excluded before deciding to purchase such coverage.