When you purchase comprehensive coverage, you will select a set deductible, which is the amount you pay out of pocket toward a covered claim. Let's say you choose a $500 deductible, and your car is later damaged by hail in a covered claim. If it costs $1,500 to repair your car, you would pay your $500 deductible, and your insurance would pay the remaining $1,000.
Comprehensive coverage has a limit, or the maximum amount your policy will pay toward a covered claim. The limit on comprehensive coverage is typically the actual cash value of your vehicle.
If your car is stolen, for example, your policy would reimburse you for your car's depreciated value. In other words, if you wanted to replace your stolen vehicle with a newer make and model, you would likely have to use some of your own money to do so, in addition to using the reimbursement from your insurer.
What Is the Difference Between Collision and Comprehensive Insurance?
Collision coverage helps pay to repair your car if it's damaged in a collision.
Comprehensive is a separate coverage from collision and covers different types of losses.
Comprehensive coverage has a limit, or the maximum amount your policy will pay toward a covered claim. The limit on comprehensive coverage is typically the actual cash value of your vehicle.
If your car is stolen, for example, your policy would reimburse you for your car's depreciated value. In other words, if you wanted to replace your stolen vehicle with a newer make and model, you would likely have to use some of your own money to do so, in addition to using the reimbursement from your insurer.
What Is the Difference Between Collision and Comprehensive Insurance?
Collision coverage helps pay to repair your car if it's damaged in a collision.
Comprehensive is a separate coverage from collision and covers different types of losses.
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