Comprehensive coverage provides essential protection, but it can be quite costly. This article takes a look at some of the factors you need to consider when deciding whether you still need this type of coverage.
Shopping for car insurance can be a pain point for many since you are paying into something you hope you never have to use. While most states require collision insurance, comprehensive coverage is optional at both the state and company levels; this makes it the first item to eliminate when cutting costs. If you are questioning if you need to spend the extra dollar on comprehensive, United Car Care reviews a few things to keep in mind.
- Most lenders require comprehensive insurance (up to a certain amount) if the car is financed or leased.
If you are financing or leasing a new car, review the policies of the lender you are working with to understand their requirements. Some only require the highest deductible or lowest coverage your insurer offers, but it is important to confirm.
- Comprehensive coverage only pays up to the value of the car.
If you own an older car that has a lower resale value, consider that when selecting coverage. If your vehicle is older, it may make financial sense to eliminate comprehensive insurance if the cost doesn’t outweigh the benefits. If your car is deemed totaled from an event, not all insurers will cover it with a salvage title or may charge a premium to do so. In other words, if your car is only worth $1000 and your comprehensive deductible is $1000, you may be paying for insurance that won’t cover anything in the event something happens to your car.
- Be aware of environmental impacts or other factors where you live.
If you live in an area that is prone to hailstorms, flooding, tornadoes, hurricanes, earthquakes or other natural disasters, it may be beneficial to select comprehensive insurance. It may even be worth paying for a plan with a lower deductible to guarantee the amount out of pocket you will have to pay if your car is damaged. Another factor to consider is if you live or work in an area prone to crime or vandalism. Areas that are at risk for car theft may benefit from having insurance to protect not only the car but any belongings contained inside. It is important to consider where your car spends the most time–whether that may be at home in a garage, parked on the street, or in uncovered parking lots at your office.
- Other one-off situations.
If you live in a rural area where the likelihood of hitting an animal–such as a deer or coyote–that can cause significant damage to your car, comprehensive insurance may be beneficial. Another common scenario is rock chips in windshields. Some states include glass repairs or windshield replacements under comprehensive, so make sure you know the policies of your state.
About United Car Care
United Car Care vehicle service contracts offer reliable protection at an affordable cost, which is exactly what consumers want when looking for mechanical protection for vehicles. Their product is backed by an A-rated insurer, thus providing contract holders with the utmost security.
United Car Care has earned an A+ rating with the Better Business Bureau, which speaks to the way they do business—with integrity. United Car Care is proud of the fact that they have had over a million satisfied customers as well as many long-time relationships with their dealers and agents. These relationships are a true testimonial to United Car Care’s core values: quality, dependability, and customer service.