Comprehensive Insurance Meaning
What is comprehensive on car insurance? Surely the world of insurance can be confusing. And it doesn’t help when people use big, boring words to explain everything.
Comprehensive car insurance is a type of partial insurance coverage that you can get as an option, unlike liability insurance which is required by law in most areas.
It basically covers events that are not in your control. In other words, ‘everything else’ that isn’t a crash, or an event as the result of your driving, or a liability.
What is Comprehensive on Car Insurance – What Does Comprehensive Insurance Cover?
Insurance policies vary, but comprehensive car insurance typically covers damage caused by the following:
- Fire
- Wind
- Hail
- Flood
- Theft or damage done by attempted theft
- Vandalism
- Falling or flying objects (I’m not sure if UFO’s are included)
- Hitting an animal
- Natural disaster
- Riot or civil disobedience (why can’t we call just get along?)
- Glass and windshield repair
ICBC What Does Comprehensive Cover?
Comprehensive auto insurance from ICBC covers the following
- Theft
- Vandalism
- Fire
- Earthquake
- Explosion
- Falling or flying objects like a rock or gravel hitting your windshield
- Hitting an animal (wild or domestic)
- Weather—lightning, windstorm, hail, rising water
- Windshield repairs
What Is Comprehensive On Car Insurance – Is It Worth It?
Is comprehensive insurance worth it? This is difficult to answer because it all depends on you and your circumstances. For example, consider whether you have a newer or older vehicle.
Newer vehicles – of course – cost more to repair than older ones.
Could you afford to fix the potentially expensive damage yourself in the case something happened?
And since comprehensive coverage includes theft, could you afford the cost of replacing the entire vehicle if it were stolen?
If thinking about that gives you the chills, then maybe comprehensive car insurance coverage would be worth it for you.
On the other hand, if you are driving a ‘500 buck truck,’ then maybe you could skip it and wouldn’t worry if something happened.
If something happened, it would be more cost effective to simply obtain another vehicle.
You can also consider whether you live in an area that seems to experience a lot of car theft and/or vandalism.
Also, consider your location. If you’re in a location that regularly experiences weather-related disasters, then perhaps the extra coverage would be worth it.
There’s just nothing quite like a typhoon or hurricane wrecking your car, and not having insurance to cover it.
What Is Comprehensive On Car Insurance? Collision vs Comprehensive
Comprehensive coverage includes things that generally happen to the vehicle when you are not driving it. Or, at least not as a result of you driving it.
Collision coverage is exactly as it sounds; insurance for covering the losses that result due to a car crash.
Comprehensive is separate from car crash insurance.
What Is Comprehensive On Car Insurance – Car insurance Deductible Definition
I can’t write about car insurance without mentioning the famous deductible.
A car insurance deductible is simply the amount of money that you would be responsible for paying if you had an auto insurance claim.
The insurance company covers the remainder of the costs to repair your vehicle (or whatever the costs of the claim are).
What Is Comprehensive On Car Insurance – How Do Car Insurance Deductibles Work?
Typically, drivers have some choice about their deductible amount. You can choose a higher or lower deductible.
Your deductible amount will influence your insurance cost.
If you choose a higher deductible, your insurance premiums will be lower. This is because you would pay more out of your pocket if you did have a claim.
If you choose a lower deductible, say, the lowest option, then your insurance premiums would be higher.
This is because you will only be paying such a low amount in the event of a claim.
I suppose insurers need to make sure they make money one way or another.
So, it’s really up to you and your particular situation and circumstances if you think comprehensive insurance would be worth it. Don’t be afraid to call up your insurer – or shop around – and ask for a quote.
Once you know the actual cost of the coverage, it may be easier to make a decision on if this is right for you.
Carmen Cohoe
Carmen became a driving instructor in beautiful North Vancouver at the age of 22 due to some crazy people who agreed to hire her. After that, there was never a dull moment teaching many different folks from many different places how to drive using automatic and standard vehicles and a minivan.
