The term comprehensive auto insurance is very misleading. Many times, you will hear that you should have comprehensive coverage – but what does that mean? It can mean two things. It can mean that you should have an ample amount of coverage to reduce your risks of having to pay out-of-pocket for most types of incidents. Or, it can refer to the specific type of auto insurance known as comprehensive car insurance. Confused? Here is what it means for drivers in Springfield, Ludlow, Chicopee, and the surrounding areas.
Comprehensive Auto Insurance Is a Type of Insurance
There are various types of auto insurance that can come within a single. Many drivers want all of them. Other drivers may need to pick and choose coverage based on their specific risk factors. Some types of insurance include collision insurance, liability insurance, medical payments coverage and comprehensive insurance.
In this way, comprehensive coverage is a specific policy you can buy. You may need to buy it to protect the value of your car from unexpected and unavoidable loss.
What Does Comprehensive Auto Insurance Cover?
This form of car insurance provides a wide range of protections for you. Generally, it applies to situations where you do not cause damage to the car, but it occurs.
Here are some examples of what your policy may cover:
- Falling objects
- Glass damage
- Car theft
- Storm damage
Still, this type of car insurance does not cover all risks.
For example, it does not include any instance in which your vehicle collides with another vehicle or object. It does not cover the legal or medical expenses related to an accident. It doesn’t provides coverage for damage you do to another person’s vehicle. Your collision, medical payments and auto liability insurance coverage, respectively, might pay for such losses.
When Do You Need It?
Generally, you need to carry comprehensive auto insurance whenever there is the likelihood that significant damage to your car will cause financial hardship.
For example, if you have a leased car or one that has a loan, you need to carry proper auto insurance like this. It is often a requirement within your contract with your lender. That’s because coverage will help you pay for repairs to the vehicle, therefore protecting its value for both you and your lender.
Speak to your agent about your need for comprehensive car insurance. Know that it is one of the foundations of protecting your car.