Comprehensive coverage is an optional auto coverage that provides a financial safety net if your vehicle is damaged and needs to be repaired or replaced. This coverage provides specific protection for various losses, which can be costly if your vehicle is ever damaged or stolen.
Comprehensive coverage pays for damage to your vehicle that would not be considered a collision and is caused by an unknown party, such as in cases of theft or vandalism, or by random, naturally occurring disasters such as a fire or hitting an animal on the road. It’s important to speak with 2nd Chance Insurance to determine the extent of your specific policy.
There are three facts about comprehensive coverage you should know:
1. In the event of an accident that totals your vehicle, your insurer will cover the entire replacement cost of the vehicle after you’ve paid your deductible.
2. If your car’s value is less than what your premium payments and deductible would cost, comprehensive coverage might not be for you.
3. Comprehensive coverage policies vary, so be sure to discuss your specific policy with 2nd Chance Insurance to avoid surprises in the event of a claim.
How does your comprehensive coverage deductible work?
Immediately after your car sustains damage, you should file a claim with 2nd Chance Insurance and then bring your car to an auto body shop. The mechanic will come up with an estimate for repair.
Your insurance will cover all expenses in excess of your deductible. For example, if your deductible is $1,000 and the cost of repairs is estimated at $1,500, your insurance will cover $500 of the cost.
Do you really need comprehensive coverage?
That depends. Only you can decide how much risk is right for you.
As a general rule of thumb, if your car is worth more than $4,000, it’s wise to invest in comprehensive insurance. In this case, the cost of repairing your car will likely be less than the cost of replacing it completely.
If your car is worth less than $4,000, it’s possible that the cost of repairs following an incident could be more than the value of your car. In this case, your money would be better spent saving for a new car instead of paying comprehensive coverage premiums.
Other factors to consider are the amount of money you have in savings and how much you rely on your vehicle. It may be tempting to opt out of comprehensive coverage to save the extra cash, but doing so comes with risk. Opting out of comprehensive insurance could mean being without transportation following an accident. If you don’t have comprehensive coverage and your car is damaged from an unexpected source, such as burglary or a natural disaster, you may be left with a damaged car and an empty wallet from trying to come up with out-of-pocket repair or replacement costs. It’s important to carefully consider the amount of risk you are willing to take. For help in determining your risk, contact 2nd Chance for a free instant online quote today!