When trying to save some money on your car insurance premiums, you might consider eliminating the comprehensive coverage on your policy.  While this might be the right step for you to take in order to save some cash, it is important for you to understand what comprehensive coverage is and why you might want to keep it as part of your policy.  This way, you can be certain to make the best decision possible.

Understanding Comprehensive Coverage

When carrying both collision and comprehensive coverage, policy is often referred to as providing “full coverage.”  You may not realize, however, that you are not obligated to carry both collision coverage and comprehensive coverage.  Rather, you may choose to carry just one and not the other.  While collision coverage provides you with protection if you are involved in an accident that is your fault, comprehensive coverage provides you with protection if your vehicle is damaged due to an “act of God” or if it is damaged by an “unknown party.”  Examples of situations that are covered by comprehensive coverage include:

· Damage caused when hitting an animal
· Fire damage
· Flood damage
· Hurricane damage
· Theft of the vehicle
· Vandalism of the vehicle

It is important to note, however, that comprehensive coverage may have certain exceptions in place that may prevent your vehicle from being covered in certain situations.  Therefore, you should be certain to read the policy thoroughly before signing it in order to be certain you are truly getting the coverage you need.

Deciding if Comprehensive Coverage is Right for You

When it comes down to it, deciding whether or not comprehensive coverage is right for you is a financial decision.  When making this decision, you will need to consider the cost of the additional coverage as well as the value of your vehicle.  If your vehicle is still worth thousands of dollars, paying a few hundred extra dollars a year for comprehensive coverage is worthwhile.  If your vehicle is older or simply is not worth a whole lot anymore, the extra financial burden simply will not be worth it.  Remember to keep in mind the cost of your deductible when determining whether or not you should carry comprehensive coverage.  If you aren’t sure of the value of your vehicle, visit the Kelley Blue Book website to get a better idea of its value.