Do I need to buy comprehensive auto insurance coverage?

Although comprehensive auto insurance coverage is not mandatory in most states, including such protection in your Personal Auto policy is strongly advisable, especially if you are living in a big city, a bad neighbourhood, an area prone to natural disasters or you park your car on the street, instead of in a garage.

What Comprehensive Auto Insurance Covers

It is a well-known fact that you don't have to be involved in a crash with another vehicle, for your car to suffer any damage.

Comprehensive auto insurance, also referred to as "other-than-collision loss" coverage, provides protection against any damage to your auto, other than collision. The list of potential losses covered by comprehensive auto insurance is too long to ignore and the premiums are considerably lower than, say, for collision coverage so it is worth adding this auto insurance provision to your Personal Auto policy.

Here is a list of potential situations in which having comprehensive auto insurance coverage is essential:

• You park your automobile on the street and it gets vandalized by a group of rowdy people.
• You park your car on the street in a bad neighbourhood and it gets stolen.
• Your auto hits an animal crossing the road, such as a cat, a cow or a deer, or it is struck by a bird while you are driving.
• Your vehicle is damaged by fire or explosion.
• A cataclysmic flood sweeps your vehicle away.
• Your car is damaged by a massive earthquake.
• A massive branch of a tree falls on your car and causes significant damage.
• Glass breaks and damages your auto.

Comprehensive Auto Loss Payment

If your auto has suffered damages, there are two ways in which you can get indemnified:

• If the amount of the damage is lower than the cash value of your car, you are entitled to receive the amount needed to repair your auto.
• If the amount of damage to your automobile is higher than its cash value, your policy will cover the cash value of the auto.

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