Comprehensive car insurance is a personal option that all drivers have. Some people swear by it, while others wonder if it is worth the cost. The answer will obviously come down to how you feel about it because it is a personal decision based on your views. Before making any decision, you should take the time to get informed so you can make an educated decision.
There are instances when you may not want comprehensive insurance, so let’s take a look at that first before going further into depth.
- Check the value of your car and find out how much it would be worth if it was totaled. Then go to one of the online comparison sites, such as iSelect, and punch in the information to see how much insurance would cost if you did get comprehensive on it. Now, if the amount of your yearly premiums is more than what the car is worth, it may not be worth the money to get a comprehensive insurance policy on the vehicle.
- A general rule that drivers follow is if your vehicle is over five years old, a comprehensive policy may not be worth it. This is because of the depreciation that occurs on the car, which will be different for each vehicle you have. The bottom line is that if the replacement value is under a couple thousand, you may want to wave the choice of having a comprehensive policy.
Now that the couple of reasons to not have comprehensive car insurance are out of the way, it is time to see why it is a policy that should be heavily considered, especially if you do not have a wad of cash hanging around to buy a new vehicle if something does happen. In order to understand that, you will need to know what comprehensive covers and what it doesn’t.
- Theft – Nobody ever plans to have their vehicle stolen, but unfortunately, it happens. They may not even take the car for a joyride and destroy it. They may simply take the tires and wheels, steal the stereo, or something of value left in it, such as a purse or wallet. Comprehensive insurance will cover any damages to your vehicle. If included in the policy, it will cover anything that has been stolen.
- Vandalism – Kids and young adults have the tendency to get bored and decide to go break things. Unfortunately, most of the time, they will target vehicles parked along the road or by some objects that give them cover, and they will cause damage. Comprehensive coverage will pay for the repairs, whether it is a key scratch, broken window, or slashed tire.
- Acts Of Nature – Nature has a way of striking hard without notice. Tornadoes, floods, fires, hurricanes, or even wind storms can cause some severe damage to your vehicle. You will need to get an iSelect comprehensive car insurance quote to determine what the policy will cover because each one will differ. If you live in an area with flooding, you will want that type of insurance rather than tornado coverage. Without comprehensive coverage, you will be reaching deep into your own pockets to pay for any damage.
- Falling Objects – An unidentified falling object will not be covered, but if a tree branch falls from an overhanging tree and crashes through your windshield, a comprehensive policy will cover the repair costs. Anything that falls and damages your vehicle should be covered, but you must read the policy to see if any exclusions have been put into it.
- Animals – One of the most heartbreaking things that could happen while driving is to run into an animal that decides to cross the road in front of you. Running into a deer at highway speeds can total the car you are driving and cause some injury to the occupants within. Comprehensive insurance covers the cost of the repairs or the new car if it needs replacement. The medical bills will not be covered with just this policy.
Comprehensive car insurance can come in handy anytime during your driving escapades, even if you own an older car that may not be worth much. You never know when a cow may walk out in front of you on a country road, so unless you are on a minimal budget, a comprehensive policy would be worth the money the carrier would want as premium payments.
The final choice is obviously going to be up to you, but there are numerous instances that you should take into consideration before deciding to say no to a policy that might, in fact, save you from having to mortgage the house to replace your only running vehicle. Weigh the long list of benefits, compare them to a couple of negative instances discussed above, and decide for yourself if it is worth the cost.