Understanding how comprehensive coverage differs from other forms of insurance can help answer that question. Comprehensive coverage covers a broad spectrum of potential physical damage claims. It includes coverage for vandalism, contact with an animal, windshield damage, and more. Here are five questions to ask that can help you decide whether or not you should purchase comprehensive coverage. Two states effectively allow drivers to avoid car insurance. New Hampshire doesn’t have a law requiring drivers to maintain any level of insurance. However, drivers in New Hampshire without insurance are held personally responsible for the cost of any medical bills or property damage caused by a crash. In Virginia, drivers can avoid insurance requirements by paying an “Uninsured Motor Vehicle” fee. Like in New Hampshire, Virginia drivers are responsible for covering the costs related to a crash, whether or not they have insurance coverage. Failure to notify your lender of your insurance coverage can lead to expensive penalties. Ask your insurance agent to list your lender as loss payee on your vehicle. By doing so, your insurance carrier will automatically notify your lender of your coverage. All of these things could increase the risks to your vehicle. If you decide your car faces a lot of risk, then it could be worth the costs to add comprehensive coverage to your insurance policy—for the peace of mind, if nothing else. On the other hand, if you live in a city with mild weather and park in a garage, you may feel secure without additional coverage. One rule of thumb is to compare the value of your car to the premiums you’d pay with the comprehensive coverage. If your car isn’t worth at least 10 times more than the cost of premiums, then the coverage might not be a cost-effective policy. The great thing about comprehensive coverage is it is typically reasonably priced. As long as you are not a high-risk driver, comprehensive coverage can be well worth the price. Even an older vehicle might still be worth a windshield replacement. Determine how much you would pay for comprehensive coverage by calling your insurance agent or your insurance company directly. Unfortunately, without a crystal ball, you do not know if—or when—you will have to make a claim. Any serious accidents could negate the savings of removing comprehensive coverage. That makes this issue a personal decision that depends heavily upon your specific situation.
