Most of us have to purchase proof of insurance to drive on our state’s roads. That’s a fact, each year our premiums increase, and that’s a real pain for our financial balance. So how can get discounts for our comprehensive coverage policy?
In this article, we'll explain what comprehensive coverage is, how it differs from other types of car insurance, and how you can take advantage of discounts to get the best coverage at the right cost.
What is Comprehensive Coverage?
Comprehensive coverage is a coverage option that will protect your car against non-collison damages. Most lenders will request you to add it along with collision coverage. As said before, comprehensive coverage will protect your car against theft, vandalism, natural disasters, animal-related damages, among others.
What Does Comprehensive Coverage Include?
Comprehensive coverage includes a lot of possible dangers to your vehicle, that are the following :
Theft Coverage
If your car is stolen, comprehensive coverage will provide you a certain amount of money to rent a car up to 30 days until your car investigation is on progress. Once the investigation conclude, this coverage option will cover the damages caused by the thet. For example, the robber broke a window to enter your car, your comprehensive coverage will cover that broken window and other damaged parts by the theft.
Vandalism Coverage
Imagine your ex-spouse wants revenge and vandalizes your car, breaking your car’s windshield, scratching all your car’s body, and setting fire inside your car. So all of that will be covered by your comprehensive coverage.
Natural Disasters Coverage
Comprehensive coverage protects your car agaisnt natural disasters. Imagine you live in Florida, the Sunshine State is also known and the place where hurricanes happens the most. So if you live in Florida (hurricanes), California (wildfires, earthquakes), Michigan (floods) or Oklahoma (Tornadoes), you will definitely need comprehensive coverage for your vehicle.
Falling Objects Coverage
If your car is damaged by a falling object, such as a tree branch, a rock or debris, comprehensive coverage will pay for the damages. This coverage is especially useful if you park your car under trees or near construction sites.
Animal Damage Coverage
If your car is damaged by an animal, such as hitting a deer or rodensts bite your car’s electrical wires, comprehensive coverage will pay for the damages. This coverage is important if you live in an area with a high population of wildlife like Pennsylvania.
How Does Comprehensive Coverage Differ From Other Types of Car Insurance?
Comprehensive coverage differs from other types of car insurance, such as liability and collision coverage, in that it covers a non-collision damages. Liability coverage pays for damages you cause to other people and their property but won’t cover the damages to your vehicle, while collision coverage pays for damages to your car in case of a collision with another car or object regardless who is at fault.
How Can You Save Money on Comprehensive Coverage?
I know, comprehensive coverage is expensive, but not as expensive as colliision coverage. You still have many ways to save money on your comprehensive coverage premiums:
Bundling Discounts
Let’s say you collect classic cars, and as you already know, comprehensive coverage is a must for your babies. So one of the best ways to save money on your car insurnace is just bundling all your car insurance into a single policy or, you can bundle your renter’s or homeowner’s policy, this way you may obtain up to 25% discount depending on your car insurer. Here are some possible discounts you can obtain from bundling your policies:
Multi-vehicle discount
Multi policy discount
Safety Features Discounts
If your vehicle has safety features such as anti-lock brakes, airbags, or a dash cam, you may be qualified for a discount on your comprehensive coverage. Under your car insurer’s point of view, the more safe you drive and the less likley your car is going to suffer an accident, the more money you will save. Here are some possible discounts you can obtain from adding safety devices on your car:
Anti-lock brakes discount
Anti-theft system discount
Daytime Running lights discount
New vehicle discount
Good Driver Discounts
As you may know, if you’re a good driver, and you’ve not suffered any accident, not getting any traffic fine or other violations, you will be qualified to get this discount on your comprehensive coverage. Insurance companies reward safe drivers who are less likely to file a claim. Here are some possible discounts you can obtain from being a good driver:
Five-year accident-free good driver discount
Seat belt use discount
Low Mileage Discounts
If you don't drive your car often or for long distances, you may apply and be qualified for a low mileage discount on your comprehensive coverage. Car insurers will consider you are less exposed to the risks of the road, so you will be rewarded for this.
Payment discoutns
If you pay your entire annual premium upfront instead of in monthly installments, you wil get this discount on your comprehensive coverage. Insurance companies prefer customers who pay in full because it reduces their administrative costs. Note: you can also get additional discoutns from setting autopay as payment method. Other sort of discounts you can add comes about early renewal. Here are some possible payment method dicscounts available from most car insurers:
Electronic Funds Transfer (EFT) discount
Paperless discount
Pay-in-full
Online quote discount
Early renewal discount
Student Discounts
If you're a student with good grades, you may be eligible for a discount on your comprehensive coverage. Insurance companies consider students with good grades to be responsible and less risky when driving. Here are some possible discounts you can obtain from being a good student:
Driver’s education discount
Defensive driving discount
Good student discount
Military Discounts
If you're a member of the military or a veteran, you may be qualified for this discount on your comprehensive coverage. Many insurance companies offer discounts to military personnel as a thank you for their service to the country.
Affiliation Discounts
If you're a member of a professional organization or alumni association, you may be eligible for a discount on your comprehensive coverage. Many insurance companies offer affiliation discounts to members of certain groups as a way to attract new customers. Here are some possible discounts you can obtain from being part of any affiliation group:
Membership and employee discount
Federal employee discount
Emergency deployment discount
AARP member discount
Conclusion
Comprehensive coverage is a must when you ask for a loan, lenders will request you this along with collision coverage. That’s the reason why you must look for any discount you can take to lower your premiums. I know, you may think if you combine all discounts, your car insurer should pay you instead you pay them. We all know that won’t be case, but at least you will pay less for your comprehensive coverage.
FAQs
Q: Is comprehensive coverage worth the extra cost?
A: It dpeends, let’s say you are collecting classic cars, and you store them all in a garage. If for any case a fire is set on your garage, your homeowner’s coverage won’t cover it, only comprehensive coverage will cover it. But if you are driving an old cheap car, and you will change it for a new one soon, then you shouldn’t add it to your policy.
Q: What is the difference between comprehensive coverage and collision coverage?
A: Comprehensive coverage will protect your car against non-collision damages, and collision coverage will cover your car when suffering a collision against other vehicles or objects, regardless who is at fault.
Q: How much of a discount can I get for bundling my car insurance with other types of insurance?
A: It varies from car insurer to car insurer, and what sort of policies you're bundling, but it can range from 5% to 25%.
Q: How do I know if I'm eligible for a discount on my comprehensive coverage?
A: You should contact your insurance company and ask about their eligibility requirements for each type of discount.
Q: Can I get comprehensive coverage if my car is older or has a high mileage?
A: Yes, you can still get comprehensive coverage for an older or high mileage car, but the premiums may be higher due to the increased risk of damage or theft.
Other readers were also interested in the following posts:
Comprehensive coverage for classic cars: What you need to know
How to Get the Most Out of Your Comprehensive Coverage Policy
How can I Lower My Comprehensive Insurance Cost? 8 Practical Tips
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