Whether or not you drive a million dollar ride or a car that was handed down to you by your parents. It might be smart to have comprehensive insurance. Comprehensive will help round out your overall insurance protection. Is often very reasonably priced. And it might even be required for you to have it.
What is Comprehensive Insurance?
In a more general definition, comprehensive simply means complete; including all or almost all of something. Specifically to car insurance, comprehensive insurance means coverage for things other than a collision. At-fault accidents are covered by collision insurance. But your comprehensive coverage is designed to cover you for things that are often out of your control; like weather, animals, fires, etc.
Is Comprehensive Insurance Smart to Have?
Yes, having comprehensive insurance coverage on your vehicle is absolutely smart to have. The cost of it is usually reasonable compared to the financial protection if provides you. However, it depends on how valuable your vehicle is to you. The market value of your car doesn’t necessarily matter. What matters is its value you. To some people $1000 is a lot of money and some people walk around with over a grand in the pocket every day. Is the monthly cost of having comprehensive insurance coverage worth the value of the vehicle its protecting for you?
If your vehicle is only worth $500 and it would cost $500/year just to have comprehensive insurance on it; then it might not make financial sense to have the coverage. Because the pricing of comprehensive auto insurance coverage is unique to you, the only way to know if its financially smart to have is to get an auto insurance quote so you can compare the prices.
Is Comprehensive Insurance Coverage Required?
In most cases, the only requirement to have comprehensive insurance coverage will be from a lienholder. If you are financing the vehicle or leasing the vehicle, the lienholder will often require you to carry comprehensive insurance coverage on it. Because the lienholder requires the coverage, if you don’t carry it, the lienholder will insure it at your expense. It usually costs a lot more to have your lienholder provide the comprehensive insurance coverage than it would be for you to.
How Much Does Comprehensive Insurance Cost?
Just like most insurance coverage’s, the cost of comprehensive insurance coverage for your car depends on a lot of factors. Data from the Insurance Information Institute shows the US national average cost for comprehensive insurance coverage is about $136 per year. Washington DC was on the high end at about $266/year. Oregon was on the low end at about $97/year.
Keep in mind, there are numerous factors that affect the cost for you. Characteristics of your vehicle like age, market value, and cost to repair; effects the price of comprehensive insurance coverage. Also characteristics about yourself like age, driving record, and claims history can also affect the price. To help control the monthly price, you can adjust the deductible amount to a level you are comfortable with.
Comprehensive Insurance Quote
Curious to know if you are paying too much right now for your comprehensive insurance? It’s easy to get a comprehensive auto insurance quote today within minutes. No point paying more money than you need to, right?