Resembles other kinds of auto insurance in terms of how it handles claims.
Here is an illustration of how comprehensive insurance works in the event that a driver files a claim for vehicle damages, in case you have never had to do so.
Let’s say that someone drives a $10,000 Honda Accord with a $1,000 comprehensive deductible.
The driver will receive $9,000 from the insurance company if the car is destroyed by a tornado.
The policy’s collision and liability coverage will not cover the damage if they do not have comprehensive coverage and a tornado damages the vehicle.
The entire $10,000 in losses will fall on the owner’s shoulders. If the driver doesn’t have $10,000 to spend on a comparable replacement, they might have to take out a loan or settle for a cheaper option.
This illustration of comprehensive insurance in action may provide some insight into its potential value.
Assuming that you’re inclining more toward the “when to drop complete protection” side, it’s useful to realize how much harms might cost you to fix from cash on hand.
