What Are The Cons Of Comprehensive Auto Insurance?

Many car owners do not know much about the comprehensive auto insurance policy. People, who have already insured their vehicle, do not purchase this policy. You might have purchased collision insurance that will protect your car against all types of accidents. On the other hand, comprehensive car insurance policy will cover your car for everything other than the collision.

It will cover the damage due to natural disasters including earthquake, rioting, volcanic eruptions etc. Hence, the insurance company will become more vulnerable because they might have to pay for every other thing. Here are some of the reasons why you must not purchase this type of policy.

Why do people buy this policy?

If you check out the agreement of this policy, it states that the policy covers every type of damage to your car. Some people are attracted by this offer. There are always set of terms and conditions that apply to this policy. The comprehensive policy does not cover many specific events and common situations that a river might face on road.

You must go through the fine print of the agreement before making any decision. Not all people are aware of the fact that they need not buy this policy to cover basic car collision. Hence, they end up investing in this expensive option. The topmost disadvantages include-

• Cost
• Less damage other than the car collision

Why is this insurance policy costly than other alternatives?

One of the main drawbacks of this insurance is that the policy is quite costly. The reason behind this is that it will cover the range of damages to your vehicle. In case of a natural disaster or calamity, the insurance company has to provide large claim amount. If you live in high-risk area, the total cost of the policy could increase steeply. Hence, if you want to buy this policy, you must keep a check on the premiums.

If we consider the statistics of the previous year, most of the accidents occurred due to car collision. There is minimum or no damage to the car other than collision. This is the main reason why car owners prefer collision policy to the comprehensive policy.

Investing in extra features is waste of money

You might have to invest in a range of extra features. These features include the rental car options, emergency roadside services etc. Hence, people avoid buying these services to avoid extra expenses. This comprehensive policy is useful to you only if you need these additional facilities every time your vehicle is damaged.

You must consider all these factors before buying this policy. You must not buy this policy unless it is the only option left with you. You could check many other alternatives that will provide your car complete coverage without being comprehensive. In this way, you could conveniently safeguard your investment.

You could click here to compare rates of comprehensive policies by different companies. In this way, you will get to know, which company is best to make the purchase. We also provide you ratings of all the car insurance companies.