(I can't believe this happened?!)
We've talked about some of the basic coverage's when it comes to Auto Insurance. As we continue our Auto Insurance 101 series we now move on to the "Full Coverage" options. There are two major types of this coverage. The first is Comprehensive and the second is Collision. Today we are just going to just talk about Comprehensive coverage.
Comprehensive coverage covers things that are "out of your control" in a sense. It covers damages to your vehicle from things like a natural disaster (hail), falling objects (tree), hit or being hit by an animal, theft and/or vandalism.
"You're driving back home from a family get together. Everyone had a great time and you're talking to your spouse about it. It's dark outside and starts to rain. Your visibility is a little low so you're being a little bit more cautious. Then all of sudden a dear appears out of nowhere! And BAM! You hit the dear and damage the front end of your car and windshield. This would be considered a Comprehensive claim......"
Comprehensive coverage doesn't offer any type of injury coverage to you and/or your passengers. It just covers the vehicle itself!
Most often then none if you make payments on your vehicle your Loan Company will require that you carry this type of coverage and also want to be listed as a "lien holder" on the Insurance Policy. This protects the Loan Company in the event that your vehicle is totaled and/or damaged and can't be repaired (The Insurance Company basically gives your settlement from the accident to the Loan Company and any remaining amount that's left over goes to you the insured).
Comprehensive Coverage can be very affordable and sometimes can be added to your Insurance Policy without having to carry Collision Coverage. So take the time to double check your policy and see if you have this coverage!
If you have any questions or comments please let me know! Until next week! Be Alert, Be Safe and Be a Happy Driver! :)