Should you get “full coverage car insurance”? This type of car insurance covers any damage to your vehicle that is caused by events that are out of your control. For example, suppose you park your car in a parking lot and go shopping, only to come back and find that someone has hit your car and left. Full coverage insurance will cover the cost of any damages in this case after your deductible is paid.
Damage Covered By Part 9 Comprehensive Insurance
Generally, Comprehensive insurance policy covers the following costs.
- Car theft
- Damage from fallen objects on the vehicle like trees, potted plants,etc.
- Hitting an animal that jumps in the way while driving
- Damage to the car due to vandalism or riots
- Vehicle catching fire or explosion
- Rocks, debris or other cargo falling on the car from other vehicles passing by
- Damage caused in a natural disaster including tornado’s, hurricanes, floods, earthquakes,etc.
Damage That is Not Covered by Comprehensive Insurance
The comprehensive (Part 9) part of the Massachusetts auto policy does not cover the cost of the following types of damage. You will need to get separate car insurance for these types of damages.
- Property stolen from the vehicle
- Damage caused to the car in a collision
- Damage caused to the vehicle of a third party in a collision
- Any legal fee and medical expenses of your passengers or compensation for lost income
Comprehensive Insurance vs. Collision Insurance
Some people mistake comprehensive insurance with collision insurance. Both types of these coverage’s insure your car but comprehensive insurance provides coverage for different types of risks such as theft or fire.
Comprehensive insurance is usually less expensive than collision insurance. However, drivers with a record of accidents and careless driving may find that their collision insurance is the most expensive part of the policy.
Cost of Comprehensive Auto Insurance in Massachusetts
The cost of comprehensive auto insurance (Part 9) is in the range of $100 – $300, depending on the value of the vehicle and risk factors. If you agree to a higher deductible, you can lower the cost of premiums by 20 to 40 percent.
How Does Comprehensive Insurance Work?
Let’s consider a hypothetical example to understand how Part 9 comprehensive insurance works. Suppose you get this coverage for your vehicle which has a value of $15,000. The premium for this one part is $250 per year. Yet you agree to a higher deductible of $1,000 – this would decrease the cost of your comprehensive insurance premium to $180 for the year.
Now suppose that your vehicle gets damaged in a fire and the cost of repair is $5,000. You will pay $1,000 and your insurer will pay the remaining $4,000 for the repairs.
Limit of Comprehensive Insurance
There is a limit to the maximum amount of coverage that you can get through comprehensive insurance. In most cases, this is equal to the value of your vehicle.
In case your vehicle gets stolen, the insurer will check for the number of years your car has been in use and its initial value to determine a depreciated value. Taking figures from the above example, suppose you bought your car at $15,000 and driven it for 2 years. The current depreciated value of the vehicle is $9,000 and this is the amount you will get from the insurance company less any deductible.
In many cases you can add Massachusetts auto gap coverage to the policy if the vehicle is less than 5 years old. The auto gap insurance policy will guarantee that you will get compensated for any difference between the insurance payout and what you owe the lien holder for the loan on the vehicle.
For more information and to discuss your situation with a professional representative you can visit either of out two locations or call Western Mass Auto Insurance today at 413-543-3800.