All Risk Car Insurance: What It Is and What It Covers

The overall benefit of auto insurance is to provide financial protection against the unknown. Whether you drive a car, truck, or van, comprehensive auto insurance can cover your vehicle in the event of an unforeseen emergency. Although adding comprehensive auto insurance is recommended, it can increase the price of your insurance premiums.

What does comprehensive car insurance cover? More importantly, is comprehensive coverage the right choice for your auto insurance plan? Learn what comprehensive auto insurance is so you can make the right decision for your budget.

What is comprehensive car insurance?

All risk auto insuranceis designed to help you pay for damage to your vehicle that are not caused by an accident, including theft, fire, storms, vandalism, or hitting an animal. Is One option Available with all major auto insurance companies.

The biggest advantage of comprehensive auto insurance is that it covers unusual situations that you may not be able to pay out of pocket. For example, if another car were to kick a rock into your windshield and cause a chip or crack, comprehensive auto insurance may cover the replacement of your windshield. Or, if you’re driving down a country road and a deer jumps out in front of you and hits your car, comprehensive coverage could help cover the resulting damage.

While the name suggests that Comprehensive Coverage will cover everything that can go wrong, it’s not a “get out of trouble smoothly” card. Like our example above, if a deer were to hit your car, some comprehensive auto insurance policies may only cover damage to your vehicle. If you were to run off the road and hit a fence, other benefits, such as collision or property damage coverage, may be needed to pay for the resulting damages.

How does comprehensive car insurance work?

Before filing a claim, it is important to understand what situations may qualify for comprehensive coverage. In most situations, your comprehensive auto insurance could cover damage or loss as a result of:

• Natural disasters (such as tornadoes, hailstorms, or hurricanes)
• Theft of your vehicle
• Vandalism to your vehicle
• Objects falling on your vehicle
• Damage caused by animals

When starting a comprehensive auto insurance claim, it’s important to determine the root cause of the damage. For example, if you left a purse or wallet in your vehicle and a thief broke a window and stole it, you may be able to file a comprehensive claim for replacement of the wallet and any stolen personal items.

Also, if your vehicle is parked in your garage and your water heater catches fire, your homeowners insurance may cover damage to your structure, but comprehensive auto insurance would cover damage to your car, such as loss of paint. or interior damage.

When you file a claim for your comprehensive coverage, you will be asked to pay yourcar insurance deductible, or the amount of damages for which you are responsible. Deductibles can range from $0 to $1,000 or more, depending on the level of coverage you select. While a higher deductible may lower your monthly auto insurance premium, a lower deductible means you’d pay less out-of-pocket in the event of an incident. Like youbuy car insurance onlineIt’s important to determine the balance between how much you could pay per month versus how much you could pay to fix your car.

Comprehensive Auto Insurance vs. Collision Insurance: What’s the Difference?

While they cover similar situations, comprehensive auto insurance covers a very different set of circumstances than collision insurance. Both are designed to help you recover financially from unforeseen accidents, but in drastically different ways.

Unlike comprehensive auto insurance, collision insurance is designed to cover your vehicle in the event of an accident. Collision insurance benefits may cover you if you end up hitting something while driving, including another driver, a tree, or another stationary object. Collision coverage could pay for repairs to your vehicle as a result of the crash, or potentially pay for a replacement ifyour vehicle is “totaled”.

However, collision coverage is not designed to protect you from damage caused by animals, even if you were to encounter a deer or wild boar. If hitting an animal while driving results in a smashed front end or broken windshield, comprehensive auto insurance is likely to help pay for the repairs.

Comprehensive auto insurance could also help you recover from other things that hit your car. Let’s say a major storm is brewing and a large tree limb hits your vehicle, shattering the windshield and denting the hood. Even though the tree limb “hit” your car, collision insurance will not help you pay for the damage. In this situation, if you did not have comprehensive insurance, you could be left paying for the repairs yourself.

Is comprehensive car insurance mandatory?

Although most states require drivers to maintain a minimum level of liability insurance, comprehensive coverage is generally not included. Because comprehensive auto insurance only covers what could go wrong with your car, most state governments won’t require you to add it to your insurance plan.

However, that doesn’t mean you shouldn’t buy comprehensive auto insurance or that you aren’t required to have insurance. If you are purchasing your vehicle with an auto loan or leasing a car, your financial institution may not finalize the financing until you add comprehensive coverage and collision coverage. If you don’t do this within 30 days, your loan could be canceled or the creditor could add additional insurance to your loan and force you to pay the difference.

In any case, comprehensive coverage is always a good option to add to your auto insurance policy. Under certain conditions, it can help keep your car looking new and running great over time, which could give you better performance from your vehicle.

When should I take out comprehensive car insurance?

If you’re on the fence about purchasing comprehensive auto insurance, consider the current condition of your vehicle and any future repair plans. When making decisions about what to add to your overall auto insurance coverage, consider the following situations:

• Am I financing my vehicle?If you plan to get a loan to pay for your car, your lienholder will require you to have comprehensive auto insurance on your vehicle. There’s no getting around it: if a financial institution owns your title, you’ll need to have comprehensive auto insurance.
• How new is my vehicle?Although you may not be financing your vehicle, it’s important to consider age as part of your decision to purchase comprehensive coverage. If you have a newer car and plan to drive it for a long time, adding comprehensive auto insurance could help keep your car in good physical condition, no matter what. On the other hand, if your car is older, depreciated, or you’re considering replacing it soon, you can save money by removing comprehensive coverage from your insurance plan.
• What type of vehicle do I have?Depending on the type of vehicle you drive every day, you may need comprehensive coverage without even knowing it. Luxury cars and luxury SUVs often have the most claims for theft, glass damage, and other incidents. If you own a vehicle that is targeted more often than others, you could benefit in the long run with the right comprehensive auto insurance plan.
• Is my car parked inside or outside a garage?If you park your car in a garage every night, you have an extra layer of protection against the unexpected. Conversely, if you park your car outside every night, you have an added risk of damage by animals, or worse, theft by thieves. Even if you think it could never happen, comprehensive coverage could help you pay for broken windows and anything else taken during a break-in.
• Do I live in a place with seasonal climate problems?Without warning, natural disasters like earthquakes, tornadoes, and hurricanes can sweep through your region, leaving a trail of destruction in their wake. Even if the disaster causes something to hit your car, collision insurance may not help you rebuild the parts. If you live in an area that has a reasonable risk of damage, such as seasonal hurricanes, comprehensive coverage might be a good value when it comes time to make repairs.

Get the Best Comprehensive Auto Insurance from The General®

If comprehensive coverage is right for you, is It’s important to get it from a partner you can trust. Start shopping for your auto insurance forget a quote from The General®. For more than 50 years, we have covered thousands of Americans with quality insurance at a price they can afford. No matter what your needs are, The General® can help you find the right level of coverage and help you keep going.