When Is Comprehensive Insurance The Right Choice?
Most people are familiar with third-party auto insurance—the basic coverage typically required by law. But what about comprehensive insurance? Comprehensive coverage is a bit more expensive, but it can be a lifesaver if something unexpected happens. Here are three times when it might make sense to purchase comprehensive auto insurance instead of third-party auto insurance.
If You Live in an Area With High Rates of Theft or Vandalism
If you live in an area where vehicle theft and vandalism are common, comprehensive coverage can come in handy. Third-party auto insurance will only cover damages caused by another driver, not intentional damage caused by criminals.
Comprehensive coverage, on the other hand, covers damages from theft or vandalism by providing payment for the cost of repairs or replacement. However, it's important to note that many insurers have specific exclusions for items such as audio equipment and tires, so read your policy carefully.
If You Have a Brand-New Car
If you just purchased a brand-new car, you probably want to make sure it's protected from any possible damage. Newer cars tend to be more expensive to repair, so comprehensive insurance is often the best way to go.
Comprehensive coverage will cover any repair costs if your car is damaged in an accident, regardless of who is at fault. As an added bonus, it can also cover the cost of a rental car if your car is out of commission for a while. You won't get that kind of coverage with third-party auto insurance. Third-party coverage only provides protection for someone else's property or injuries if you are at fault in an accident.
Also, if you have a new car, chances are you still owe money on the loan. And if something were to happen to your car, you would still have to pay off the remaining balance. In this case, comprehensive coverage could save you from having to pay that money out of pocket.
If You Live in an Area Prone to Extreme Weather Events
If you live in an area prone to extreme weather events—such as tornadoes, hurricanes, or hail storms—comprehensive coverage could be a wise investment as these types of events often cause extensive damage to vehicles which is not covered under third-party auto insurance policies.
Most comprehensive policies will cover the cost of repairs due to weather-related damage, so you won't have to worry about paying out of pocket if your car is damaged during a huge storm or earth-shattering event.
Ultimately, it's up to you to decide if comprehensive insurance is the right choice for you. It may be more expensive, but it can come in handy in certain situations. Consider your needs and the risks associated with driving in your area to make the best decision for you and your car.
Contact a local car insurance company to learn more.