Should You Buy Comprehensive Auto Insurance?
When you buy insurance, you will notice that you can choose between different types of car insurance. Of course, almost every vehicle owner needs to purchase liability auto insurance to conform with financial responsibility laws in their state. However, state laws do not require the purchase of comprehensive or collision insurance. If you need a loan to buy a new or used vehicle, your lender will require comprehensive and collision coverage, but what should you do if your vehicle is already paid for and you get to choose.
Definition of Comprehensive Auto Insurance
Most types of auto insurance cover your vehicle in case of an accident. Comprehensive insurance covers your vehicle against non-accident damage. Some examples are hail, floods, vandalism, and other covered situations that could damage your car that do not involve an actual car wreck.
Do You Need Comprehensive Car Insurance?
You might ask yourself some of the same questions that you would ask yourself when you decide if you need collision auto insurance. If your vehicle suffers damage, can you pay to repair or replace it if you need to. For example, if you drive an old beater, you might not care to repair a few scratches or dents from a hail storm. But if a bad storm renders your vehicle unusable, what would you do? You need to balance the extra cost of comprehensive car insurance against the pain you would suffer if you needed to repair a vehicle that was damaged or lost because of non-accident damage.
In some cases, you should assess your risk. If you live in an area that floods a lot, you might risk having flood damage. If not, the risk may be low. On the other hand, most drivers can buy very affordable comprehensive auto insurance, so this extra protection might be worth a few bucks a month.
Save Money on Comprehensive With a Higher Deductible:
- If you would like the extra security, but want cheap comprehensive car insurance, you can always raise the deductible. That is sort of compromise between having no comprehensive at all and having really robust protection.
- Raising the deductible is probably a good idea if you decide that you probably will not even bother to get minor dings and scratches fixed, but you just want coverage in case something really damaging happens.
Also, if you need rental car insurance frequently, your own policy will cover the same way that your car is covered. So, having non-accident auto insurance may be more important on a new rental car than your old old car.
Shop Around for the Best Comprehensive Car Insurance Rates
In any case, you can save money on all types of car insurance, comprehensive, collision, and liability insurance, by shopping around for a company who will offer you the best car insurance rates.