Comprehensive insurance pays for damage to your vehicle for most types of events other than a collision. Examples of where comprehensive insurance would pay for damages would include natural disasters, vandalism, theft, breaking of glass, falling objects, fire, floods, or an accident involving an animal. Another way to think of when comprehensive insurance applies is when there is damage to you vehicle caused by any unknown party or caused by an "act of God".
The maximum value that comprehensive insurance will pay you is the "actual value" of your car. Typically this is determined by Kelley Blue Book value or by another published value that your insurance company uses. This "actual value"value will decline over time as your car ages. The "actual value" is further reduced by your comprehensive deductible and by the condition of your vehicle.
Comprehensive insurance does not cover normal wear and tear on your vehicle, nor does it cover engine failure, flat tires or other mechanical issues.
If you are financing your car, the lien holder may require that you purchase comprehensive insurance. No state requires that you purchase comprehensive insurance. For strategy on your comprehensive insurance choices, please read the section about getting the right level of insurance for your needs. |
