Why Some Drivers Would Not Need Comprehensive Coverage
Choosing your coverage limits is an important part of designing a good car insurance policy, but many drivers don’t spend the time to think about which important car insurance options are right for them. While the vast majority of drivers will need to carry something like comprehensive coverage, for instance, there are some drivers that don’t actually need this option. On the other hand, there are other drivers who don’t buy comprehensive coverage, but who could really use it. In order to determine whether comprehensive coverage would be a good purchase for you, it’s helpful to understand how the coverage works and why it’s considered to be important.
The basic function of comprehensive coverage is to pay for damages to the policyholder’s vehicle caused by non-accident sources. It goes hand in hand with collision coverage, which is the coverage that pays for the policyholder’s damages in an accident that he or she caused. Comprehensive coverage will pay for damage caused by weather disasters, vandalism, or even auto-theft, although the coverage can vary a bit from one state to the next. Comprehensive coverage is required by car loan institutions, so if you’re purchasing your vehicle through a loan or a lease, you won’t have any choice. You’ll have to pay for comprehensive coverage for the vehicle, as the bank or credit union issuing the loan has an interest in keeping the vehicle insured. However, if you own your own vehicle, you’ll have to decide whether comprehensive coverage is important for you.
In general, comprehensive coverage is a very smart purchase, because it keeps a car protected from the elements and from unexpected sources of damage. However, some drivers don’t feel that their cars are worth the cost of comprehensive coverage. It’s not one of the important car insurance options for them, because their vehicles are nearly valueless when compared with the cost of insurance premiums. This makes sense when considering a large period of time. If a certain driver would be charged $30 a month for comprehensive coverage on a vehicle that’s only worth a few hundred dollars, that wouldn’t be a worthwhile type of coverage to purchase. Most drivers don’t fall into this category, but some certainly do.
As with other important car insurance options, it’s good to look online for quotes on your comprehensive coverage before adding it to your policy. Whether you decide on this coverage or not, getting quotes for your vehicle will only take a few minutes, and can help you to understand the costs of comprehensive coverage versus its benefits.