Most drivers have a grip on what Collision and Liability Coverage are, but I get a lot of questions about Comprehensive Coverage. What is it? Will it ruin my day if I don't have it? How much will my insurance bill increase if I add it?
You can exist without Comprehensive Coverage, but it's great to have for those having "I'm an idiot" kind of days.
For instance; a friend of mine, who I'll refer to as Mr. MIA, was running late to meet my brother for a game of pool. He was so hurried that when he arrived at the bar he left his keys in the ignition with his car running. Around 1 a.m. he emerged to find his car MIA. Comprehensive Coverage covers you for theft, even when you make your car really easy to steal.
It also covers Tim Hortons lovers who leave their car running while they dash in for a morning brew. Even those who own one of the following "most likely to be stolen" vehicles. Bus fare isn't covered.
Top 10 Most Stolen Cars - 2009
- 2000 Honda Civic SiR 2-door
- 2003 Cadillac Escalade ESV 4-door AWD
- 1999 Honda Civic SiR 2-door
- 2006 Chevrolet/GMC Trailblazer SS 4-door 4WD
- 2002 Cadillac Escalade EXT 4-door AWD
- 2005 Cadillac Escalade ESV 4-door AWD
- 1997 Mitsubishi Eclipse Spyder 2-door
- 2000 Audi S4 Quattro 4-door
- 2006 Hummer H2 4-door AWD
- 2005 Cadillac Escalade 4-door 4WD
( Source: Insurance Bureau of Canada)
This one's on me. I left the top down on my convertible and returned to a downpour that turned my "hot rod" into a "hot tub." Comprehensive Coverage covers water damage.
I recently got into a heated discussion with a friend who insisted I needed to turn off my cell phone around gas stations, as the electrical charge could spark a fire. Stoopid, right? Yet, better safe than sorry. On the off chance this could really occur, Comprehensive Coverage covers car fires. And when the gas station sues you for levelling it, your Liability Coverage will kick in.
What if you're dumb enough to "fool around" while dating a vindictive type that Carrie Underwood sings about in her song Before He Cheats? What if she dug her key into the side of your pretty little souped-up four-wheel drive, carved her name into your leather seats, took a Louisville slugger to both headlights, and slashed a hole in all four tires? Yep, all covered. Bet that's where they got the name "Comprehensive" from.
What about natural disasters, commonly known as "Acts of God"? Falling trees, lightening, and hail would all be covered.
Shopping cart collisions? Yep, covered.
Normally Comprehensive Coverage comes with deductibles of $300, $500 or $1,000. The cost to add Comprehensive Coverage to your policy with a $300 deductible would only cost around $150 to $300 annually, or around $12 to $25 per month.
Many drivers think that increasing the deductible would greatly slash that cost, but increasing the deductible from $300 to $500 or even $1,000 only saves a few dollars as illustrated by the example below.
Rate Example (Rates based on a city driver, $1-million liability coverage, clean record)
|
Vehicle Type |
No Comprehensive Coverage |
Comp. Cov. $300 Deductible |
Comp. Cov. $500 Deductible |
Comp. Cov. $1,000 Deductible |
|
Honda Coupe |
$1,622 |
$1,853 |
$1,827 |
$1,793 |
|
Honda Odyssey |
$1,371 |
$1,542 |
$1,523 |
$1,498 |
Comprehensive Coverage pays for damage to your vehicle except for collision damage.
It covers; fire, theft or attempted theft, lightning, windstorm, hail, rising water, earthquake, explosion, riot or civil disturbance, falling or forced landing of aircraft or parts of aircraft, stranding, sinking, burning, derailment or collision of any kind of transport upon which the vehicle is being carried on land or water, falling or flying objects, usually windshield damage here, and vandalism.