Comprehensive Car Insurance

Comprehensive auto insurance will provide protection against damage to a vehicle, when the damage results from events other than an accident that occurs while the policyholder is driving. Aside from collision, these policies will cover damage to the policyholder's car resulting from fire, explosions, earthquakes, hail, tornadoes, floods, riots, vandalism, and theft. However, this coverage usually does not pay for the entire loss, and there is usually a deductible that must be paid by the policyholder before the comprehensive car insurance release funds.

If the coverage has a deductible of two hundred and fifty dollars and the amount of damage or loss is two thousand dollars, the policy holder would pay the two hundred and fifty dollars and the insurer would pay the remaining one thousand seven hundred and fifty. Depreciation can also affect the amount that the comprehensive car insurance will pay. The value of a vehicle decreases as it ages and the amount a policyholder will collect decreases as the vehicle ages. The comprehensive car insurance policy will reimburse the policyholder for the actual cash value of the vehicle at the time of loss rather than the amount that the policyholder paid for the car initially.

When considering a policy on an older car, it might not be a wise financial decision to take out this type of coverage. It is important to know the book value of the vehicle, the cost of coverage, the deductible for each occurrence, and the amount the comprehensive auto insurance policy will pay if the vehicle were to be totaled after the deductible is met. If the cost of comprehensive car insurance is more economical than the cost of replacing or repairing the car at the owner's expense, it would be wise to take out a policy on the vehicle.

This coverage is definitely worth the money for those who have a newer vehicle that would cost a tremendous amount of money to repair or replace. While the likelihood of a disaster striking and wiping out the vehicle may be small, it can and does happen to people every day. Even small occurrences like falling trees or a storm with hail can do significant damage to the vehicle. It pays to be prepared and have the peace of mind that if something like this does happen, the comprehensive auto insurance will cover it with very little money out of pocket. When all else fails, though, car owners should look to the Lord. "God is our refuge and strength, a very present help in trouble" (Psalm 46:1).