The portion of an auto insurance policy that covers the insured's vehicle has two sections: collision and comprehensive. Collision coverage is more commonly used, and there can be confusion about a comprehensive loss. Many drivers overlook comprehensive loss because they don't realize that a loss may be covered.

Types of Losses

According to Allstate.com, comprehensive claims result from "situations that don't necessarily involve other drivers or vehicles" such as damage done by a storm, vandalism, an animal, or a "passive" object such as a tree or a post in a parking lot. Basically, any damage resulting from anything other than an accident may be considered in this category.

Coverage Amounts

When you are deciding whether to file a claim, verify that the policy actually does include this coverage, since it is optional. There will also be a deductible involved. This is the amount the insured agrees to pay before looking to the insurer for assistance. If the deductible exceeds the amount of repair costs, no claim should be filed.

Deductibles

The deductible amount varies at preset intervals, depending on the company. Carefully consider the ratio of cost to risk. The lower the deductible, the less out-of-pocket expense if there is a loss, but the regular monthly premium will be higher. CarInsuranceRates.com states that up to 20 percent can be saved on insurance rates by choosing a higher deductible. The choice is ultimately up to the insured.

Is It Necessary?

The age and value of the vehicle being insured are the most important factors to consider when deciding whether to include this coverage in an auto insurance policy. Will the premiums paid add to more than the vehicle is actually worth? If the vehicle is financed, however, the lien holder will require that this protection is carried regardless of other factors.

Effects of a Claim

An occasional comprehensive claim against a policy will not affect your coverage. However, this practice varies from company to company, so know what limits are set by the particular insurer. Too many losses of this type could cause a premium to rise, or even result in the cancellation of the policy.

Source:

Allstate Insurance

Car Insurance Rates