Comprehensive Auto Insurance
Comprehensive insurance pays for damages to your car other than
collision. This includes damages caused by any unknown party, such as
theft and vandalism, as well as damages resulting from an “act
of God” like hurricane, flood, or fire. However, not all non-collision
damages are covered by the comprehensive insurance. For example, damages
caused by wear and tear or mechanical breakdown are not covered. You
should make sure to read your comprehensive insurance policy for exact
coverage details.
As with collision, comprehensive coverage pays up to the fair market
value of your vehicle (less your insurance deductible). If
the insurer evaluates your car to be worth less than the coverage, you’d
better not buy a comprehensive insurance. If your car is not new, you
can get an idea about its value in publications such as the Kelley Blue
Book or the Official Used Car Guide published by the National Automobile
Dealers Association and updated each month.
Although comprehensive insurance it's not mandatory in any state, you
will probably need it if your car is financed. |
