Not every state requires drivers to purchase comprehensive auto insurance, but car leases and lenders may require that you get it. If you want to understand comprehensive auto insurance, also known as car liability insurance in Boca Raton, Florida, we will explain it with a colorful analogy. You will only need comprehensive auto insurance if you have terrible luck while driving your vehicle, and some people even call it bad luck insurance for your vehicle.
The insurance coverage will cover all the damages to your car, including everything from a rollover, to a tree falling on top of it to a traffic accident. It also includes all sorts of random events that are out of your control, which would include hail falling on your windshield and damaging it or vandalism caused by riots when your car is parked out on the street.
Even though some state governments and insurance companies make comprehensive auto insurance options for drivers, some concerned lenders require it if you are leasing or financing a vehicle. If you want to understand commercial insurance in Delray Beach, Florida, or comprehensive auto insurance, you’ve come to the right place as we will discuss everything you should know about it.
What is Covered Under Comprehensive Auto Insurance?
Comprehensive auto insurance is like a giant safety net for your vehicle, as it protects you from paying for any damage that occurred to your car. That includes a long list of variables, which are:
- Vandalism or riots
- Earthquakes and floods
- Theft and stolen parts
- Striking an animal on the road
- Explosions or fire damage
- Falling objects, like tree branches
- Hail or lightning damage
- Storm damage from tornadoes and hurricanes
You will also get coverage for glass damage to your windshield in several states from comprehensive auto insurance policies. Apart from the list of things covered under car liability insurance in Boca Raton, Florida, some things aren’t covered. These include:
- Injuries caused to other drivers in an accident
- Injuries you have suffered in a road collision
- Damage to your vehicle if you were at fault for the accident
The most important thing that you need to know about comprehensive auto insurance is that it will only pay out till it reaches the overall value of your vehicle. It won’t exceed the cost of your car after the deductible has been taken from it. Therefore, if you have a car that isn’t worth much and is quite old, you won’t necessarily benefit a great deal from comprehensive auto insurance or commercial insurance in Delray Beach, Florida.
How Much Does Comprehensive Auto Insurance Cost?
The current estimates vary, but in 2018, the cost of comprehensive auto insurance coverage on average in the United States came out to around $170. That is the last year for which data was made available by the National Association of Insurance Commissioners. That number also comes with discounts and may also include group policies that are more affordable than policies you can purchase online.
It would be best if you remembered that you wouldn’t be able to purchase comprehensive auto insurance coverage for any vehicle that you’re driving on its own, as you may have to purchase collision coverage with it. That’s mainly because the auto lender may require that you purchase both coverages before they lease or finance your vehicle.
When Do You Need Comprehensive Auto Insurance?
When purchasing comprehensive auto insurance, you must never forget that the coverage will be worthless as your car’s value starts depreciating over a period. It’s mainly because the policy will not pay more than your vehicle’s overall value. If you don’t have a contractual obligation to purchase the coverage, you can easily do without it.
However, if you want to achieve peace of mind, you can purchase comprehensive auto insurance because you won’t have to worry about paying for damages to your car caused by random events. If you want to learn more about comprehensive auto insurance, commercial insurance in Delray Beach, Florida, or car liability insurance in Boca Raton, Florida, you can contact All Risk Insurance Group for further information.