Your car probably sits outdoors the majority of the time. That leaves it exposed to a lot of potential damage risks. And it isn’t just a car wreck that might damage the car. There are numerous damage hazards within your car’s everyday surroundings. You should do what you can to prevent these, but if they can’t be prevented, you also need a resource to fix the damage. Your car insurance might provide that, as long as you have comprehensive damage insurance on your auto policy. Here’s a little more information on this vital piece of coverage.
What’s Comprehensive Car Insurance?
Car insurance can cover a variety of damages that your vehicle might sustain. There’s a certain part of coverage, called collision insurance, that will pay for damage the car sustains in a wreck. However, another portion of coverage, called comprehensive protection, covers damage that results from accidents that are not related to wrecks. Since damage can come from a variety of sources, then this coverage can pay in numerous circumstances.
When Will Comprehensive Insurance Pay?
A comprehensive damage policy will pay for numerous types of vehicle damage, sustained from accidents like:
- Theft (partial or total)
- Falling objects
- Certain water damage
So, suppose that one day, you walk outside to see that your vehicle has been vandalized in the night. Someone broke the driver’s window, reached in, opened the car’s hood, and stole the battery. So, not only do you have a broken window on your hand, you also are without a battery. But, because the damage resulted from theft and vandalism, comprehensive car insurance should pay for the repairs.
How Much Will My Policy Pay?
Comprehensive coverage will have various limitations attached to how much it will pay for a vehicle’s damage. In many cases, it will pay the full cost necessary to return the car to its pre-damage state. The only limit is that you might have to pay the cost of your damage deductible towards the repair costs. The policy will then pay remaining damage costs. If the damage cost falls below the deductible cost, the policy might pay.
However, if the damage is too extensive and your insurer totals the vehicle, then they will compensate you either the car’s cash value at the time of the accident, or the car’s replacement cost value. If you receive the replacement value, you’ll be able to receive a new car of equal or lesser value. Actual cash value is the old car’s depreciated cost at the time of the accident, which might not be enough to buy a new car.