Some car insurance terminology is easy to understand, like cancellation or non-renewal. On the other hand, there are some terms that you had better know, like comprehensive car insurance. It’s one of the most misunderstood coverage items, when you purchase a policy.

We didn’t have the money to buy gas, much less buy car insurance.

When we were young and broke in 1968, my wife and I drove a 1954 Ford. It was a great old car.  We bought it for $125.00 and drove it for three years, until we got out of college.  We didn’t have the money to buy gas, much less buy car insurance.  However, we knew we were toast if either of us were involved in an accident, so we cut our “entertainment” budget and purchased a liability only policy.

A More Inclusive Policy is Needed for Higher Value Autos

Our next car was a brand new 1970 Plymouth Duster with a 4 on the floor and the big 340 engine.  I loved that car! I think we paid $2,900 for it and our insurance agent said we should think about a more inclusive policy that covered the car at book value. Knowing nothing about it, we said to go ahead. When we got the quote, we almost turned the car back in to the dealer. After paying that first six month premium, our car sat in the driveway a lot, until we could afford gas.

Comprehensive Car Insurance is for Accidents That Don’t Involve a Collision

To protect your valuable automobile, there are two coverage’s that go hand in hand. The first is comprehensive car insurance, which reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. I’m not sure I want to think about missile damage, but the other instances could occur. Comprehensive car insurance will also reimburse you if your windshield is cracked or shattered, which happens a lot in states that use gravel on icy roads. Some companies offer glass coverage with or without a car insurance deductible.

Collision insurance even covers damage from potholes.

Collision car insurance pays for damage to your car resulting from a collision with another car, any type of object or if you flip the car. It also covers damage caused by potholes. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for your deductible.

Thanks for visiting Car Insurance Journal. I hope this article on comprehensive car insurance has helped you.  Come back soon. I post new articles very consistently.