#comprehensive auto insurance
State Farm car insurance comprehensive coverage: what you should know
Hail? Flood? Fire damage to your car? Consider adding State Farm car insurance comprehensive coverage
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If you have State Farm car insurance, comprehensive coverage is an upgrade you may want to consider adding. It helps cover damages that liability insurance does not, and there are a few other things about it you should know.
Added protection for your car
Most states require drivers and car owners to carry liability insurance. Liability car insurance only covers the damage you cause to others in a collision. It does nothing to pay for any damage your car sustains, either in a collision or as a result of some other event. If you lease your vehicle or if your car is being financed through a car loan, there is a good chance that the terms and conditions of that loan or lease will require you to add protection in the form of collision coverage or comprehensive coverage, or both. For non-collision damage, you’ll need auto insurance with comprehensive coverage.
With a comprehensive coverage upgrade to your car insurance, State Farm will help pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover. Typically, that’s coverage for any of the following events:
- Falling or flying objects
- Hitting an animal
With comprehensive coverage, you’ll be eligible for State Farm’s car theft reimbursement, a program that reimburses you the market value of your vehicle if it’s stolen. Depending on the state were you live and drive and some other details of your coverage plan, you may also be able to opt for a “vehicle replacement” feature that will pay for replacing your car with one of equal vintage and/or value, regardless of what the current market or cash or trade-in value of your car may be.
Even when you experience vandalism or broken windshields, State Farm’s comprehensive coverage will pay for repairs.
Because of the wide range of coverage offered, comprehensive can be an expensive addition to your car insurance policy. The cost is largely dependent on the total amount of coverage as well as the deductible you select. The total coverage amount should equal the market value of the car so that you’ll be able to replace the vehicle if it suffers enough damage to be declared totaled (meaning that repairing the vehicle will cost more than it is currently worth) which would require you to file a totaled car claim. The more expensive your vehicle is, the more expensive your comprehensive coverage.
The deductible is the set amount of out-of-pocket expenses during the year you will be willing to pay before State Farm starts making payments on your claim(s). The higher the deductible, the less money State Farm has to pay for repairs, so by raising the deductible, you can lower the cost of coverage. Depending on the state where you live and drive, you can select from a pretty broad range of deductibles. State Farm offers car insurance comprehensive coverage with deductibles ranging from $0 to $1,500 (though in some states and under some circumstances, you can get a $2,000 deductible.)
State Farm is one of a handful of car insurance companies that allow you to add just collision or just comprehensive options (the majority of car insurance companies require you to combine the two) and this will give you a great deal more flexibility in considering whether to add comprehensive and to what level.
Before selecting a deductible, you should review your finances to ensure that you would be able to pay whatever level you set it in the event that your vehicle is damaged. You should also make certain that the deductible amount you choose is not higher than the actual value of the vehicle itself, negating any reason to carry comprehensive insurance in the first place.
You should also consder your inherent risk for events covered by comprehensive as an option. For example, do you live in an area prone to severe weather? Do you live where the auto theft rate is unusually high? Do you park you car in a driveway with older, taller trees? Does your daily commute put you at risk for flying rocks or even wild animals?
Should you add this option?
No state will legally require you to add comprehensive and unless you are contractually bound to do so, you may still be wondering if this add-on is worth it. If you live in an area high at risk for an event that would be covered by comprehensive, perhaps it would be wise to just add comprehensive (which you can do with State Farm). One simple formula for helping determine if a coverage option like this is of value is to add up the total of the anticipated increase in your premium for the time you expect to be driving the car, add to that the decutible you’ve set, and if the grand total exceeds the value of your car, perhaps it’s not a wise choice to take on the added cost.
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Rates and recommended deductible levels can be influenced by where you live and it’s a good idea to speak with a local State Farm agent to get a full understanding of the car insurance options they have for you. Reply! can assist in this effort by connecting you with local car insurance professionals with the resources needed to get you the best possible coverage.
Jeffrey Davidson is the Auto Insurance content editor at Reply! with more than 25 years of market research, PR, insurance sales and consulting experience. To share his insurance ideas, find him on Google+ .