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Comprehensive Insurance - Auto Insurance

By Compuquotes Team on March 27th, 2008
Auto Insurance

You Can Comprehend Comprehensive Auto Insurance

Comprehensive auto insurance is the most thorough of all auto insurance policies, and so it's also the most expensive. Where as liability covers only damage done to another driver's vehicle, comprehensive auto insurance covers both your car and the other driver's car, even if you're at fault in the accident.

Collision also covers both drivers in an accident. But the coverage stops if there is no accident. So if your car is stolen or damaged by vandals, you're out of luck. Comprehensive auto insurance can cover anything from theft to hail storm damage, and yes, even vandalism.

So why wouldn't someone want a comprehensive auto insurance policy? Again, we go back to the price. Even if you're willing to pay a high premium for the comfort of that financial safe-guard, sometimes a car just isn't worth as much as the cost of insurance.

So How Much Does Comprehensive Auto Insurance Cost?

The prices for comprehensive policies vary. Auto insurance companies take into account everything from your driving history to your age and sex. They also look at the car you're insuring. An expensive car will obviously have higher rates than a non-expensive one.

But the value is only one aspect of a car. For comprehensive auto insurance, companies base their rates on such details as the car's safety features, reliability, and even the color.
The price will also depend on what kind of coverage you're looking for. For example, you could lower your premiums with a high deductible (the amount of money you'll pay out of pocket before the insurance starts paying for something).

You could also insure a smaller percentage of the car's value to lower your rates. Actually, most comprehensive auto insurance policies do not cover 100% of the car. They normally cover about 80%...they use this to discourage insurance fraud (people who destroy their car because they are tired of it or get into financial binds).

Do I Need Comprehensive Auto Insurance?

If you're financing a car, then you'll have to have comprehensive auto insurance. The banks want to protect their investments, so it's a requirement. Many people drop their comprehensive policies after they've paid their loan off. By then, the car isn't worth as much and it doesn't make sense to keep paying the high premiums.

As mentioned above, insurance costs can easily outweigh the price of a car. If a car is worth less than eight thousand dollars, then collision would probably be a better policy.

You might also want comprehensive auto insurance if you're car is at risk from theft or vandalism, or even if you live in an area with lots of natural disasters. If you drive for a living (like make deliveries) and leave your car unattended in unfamiliar neighborhoods, comprehensive auto insurance might be the right move.

How Do I Get Comprehensive Auto Insurance?

Find the blue book value of your car, and compare it with the insurance prices. Get quotes from several agents. You can find a huge difference between two different companies. But then again, don't make the mistake of thinking that the cheapest comprehensive auto insurance is always the best. Ask your friends and neighbors (ones who have recently put in a claim) if they're satisfied with their insurance provider.

Most insurance companies have websites. You can go there and get a quick estimate in a matter of minutes. Or better yet, you can use a site that will give you quotes from several agents and companies at once. This way, you won't have to type in the same information over and over again.
And there you have it, a comprehensive explanation of comprehensive auto insurance.

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