There are a number of expenses to consider when you first pass your driving test. You need purchase a vehicle, buy the gas, pay for repairs and generally be able to keep it running and roadworthy. In addition, and possibly most importantly, you need to be able to insure your vehicle. Most States insist on a particular level of liability insurance to be able to drive legally within the State. However, there are other types of insurance (carinsurancecheap) that you may wish to consider. One such insurance is comprehensive insurance, but what is it and is it worth having?
What is comprehensive auto insurance?
In short, comprehensive auto insurance cover the cost of repair or replacement of your vehicle following, non-accident related damage. If you vehicle is stolen then it is covered by this type of insurance. Similarly if a herd of wild horses suddenly stampedes down your street and crushes your vehicle, your comprehensive car insurance would cover the repair or replacement costs (after deductibles of course). Comprehensive auto insurance also covers you in the event of:
- Naturally occurring incidents such as floor, earthquakes and storms
- The actions of third parties such as riots, vandalism and theft
- Fire, explosion or falling objects
- Collision with any type of animal that causes damage to your vehicle
- Damage to your windshield as a result of incidents such as stones being thrown up by other drivers
What comprehensive auto insurance is NOT
If your vehicle is damaged in an accident or collision with another vehicle then the damage is not covered by comprehensive insurance. Neither is any damage caused to the other vehicle if the accident was your fault. Comprehensive insurance does not cover damage to persons or property either. Other insurances such as liability and collision cover are required to cover these types of damages.
Is it worth the potential premiums?
There is no universal answer to this question. Drivers need to weigh up the pros and cons of having or not having this type of insurance. They then need to be applied to each drivers individual situation. The pro’s of having the insurance have been laid out already and there are a wide range of everyday occurrences (and a few hopefully less regular ones) that drivers would be covered for. The negatives to having this insurance, however include:
- The cost of an additional premium
- Still needing to pay towards damages in the form of the deductable
- Potential for premiums to increase if you make a claim
- Potential for larger increases after traffic violations
As large and ominous as these costs may seem they must be weighed up against the potential issues related to not having the insurance, including:
- Bearing the full cost of replacing or repairing your vehicle
- Not being able to meet this cost and therefore not being able to operate your vehicle
- Not being able to travel to work (or needing to rely on public transport). Similarly for grocery shopping, school runs and days out with the family, not to mention finding alternative transport for medical visits
What’s the verdict
Unless you have enough savings or assets to be able to easily cover the cost of repairing or replacing your vehicle then comprehensive cover is a good idea. An alternative is to have a cheap, pre-owner vehicle that is easily replaced. However, even this is not foolproof as you cannot predict the future. If it is the cost of the premiums that is the main stumbling block to you considering this type of cover, there are ways to minimize this cost. To do this you can:
- Consider higher deductable amounts – ideal if you are in a low crime area and at little risk from flooding or earthquakes
- Buy from your existing insurer – most give multi policy discounts or create specific packages that include different types of auto insurance
- Add your auto insurance to your home insurance provider to access additional benefits
- Check your driving record to ensure the details are correct
- Park your vehicle in a secure place, particularly overnight – if you don’t have access to a garage then ensure the vehicle on a drive way or on a well light street within view of your home.
- Buy a vehicle that is fitted with factory issue anti-theft devices – most insurers offer discounts for these devices
- Shop around – don’t assume the first offer is the best, or that your existing insurer is offering you the best deal
Choosing the right cover for your vehicle should not be taken lightly. Getting it wrong could cost you a small fortune. However, by shopping around for the right deal you can ensure that you get the right cover at the right price. Before you set off without considering comprehensive insurance instead of asking whether the premiums are worth it, ask whether you can afford to be without it.