We have talked about liability coverage and collision coverage and to wrap it all up we need to talk about comprehensive coverage. Comprehensive coverage covers everything else that collision coverage does not. This includes hail, fires, theft, vandalism, animal collisions, and floods. Basically, it covers everything that damages your car that is not a collision.
How much does comprehensive coverage cost? Comprehensive coverage works the same way as collision coverage with a deductible. Because the events that result in comprehensive coverage loss being used are less common than collisions, deductibles tend to be lower. The average comprehensive deducible in Colorado is $100.
Do I need it? This is where the three types of insurance we have been talking about become intertwined. To review we have talked about liability insurance, collision insurance, and comprehensive insurance. Liability insurance is required by law in Colorado. A lot of people want to purchase comprehensive coverage, but not the other two types of insurance. In the state of Colorado, collision and comprehensive insurance is optional. Remember to check with your insurer when purchasing insurance as you may have to buy collision coverage in order to get comprehensive. Conversely, you may be able to buy comprehensive without buying collision but it’s important to discuss these details with your insurer. If you hold all three types of insurance many people will say you have “full coverage”. It is important to note that this does not actually mean you are protected against everything. There are still two other types of insurance you need to buy, UM/UIM and Medical Payments, to truly be “fully covered”. Additionally it is important to remember that if your policy limits are not high enough to cover the damages you can still be held liable, exposing your other assets. In the next two blogs we will talk about how to truly have “full coverage”.