What Is a Comprehensive Car Insurance Loss?
- The following are generally covered comprehensive losses: fire, theft or larceny; explosion or earthquake; windstorm, hail, water or flood; malicious mischief or vandalism; riot or civil commotion; contact with a bird or animal; and breakage of glass. Comprehensive car insurance losses are not limited to the above list only. Any direct or accidental loss that is not due to collision and not excluded is covered. For example, if an insured vehicle was parked next to a house being painted and was damaged, this would be covered under comprehensive coverage. Also, even though contact with a bird or animal could technically be considered "collision," most insurance companies cover this cause of loss under the comprehensive coverage.
- According to Superpages.com, when a comprehensive loss occurs, "your insurer will determine the amount that must be paid to either repair or replace your car. This amount is reduced by your deductible." For example, if your car is destroyed in a fire, your insurance company will determine how much it will cost to replace your vehicle. If the replacement cost is $20,000 and you have a deductible of $1,000, you will receive a check in the amount of $19,000 from your insurance company to replace your vehicle.
- Comprehensive car insurance losses usually do not affect your insurance rates the way collision losses do. However, "excessive" filing of comprehensive claims will most likely result in rate increases or even policy cancellation. Insurance companies differ in what they view as excessive comprehensive claims filings.
- Each time a comprehensive car insurance loss is filed it is reported and stored in the Comprehensive Loss Underwriting Exchange data bank. Insurance companies use the information provided by this data bank to determine eligibility for insurance coverage. Some insurance companies will reject an applicant who has a number of comprehensive losses over a certain period of time.
- According to CarInsuranceRates.com, "One of the biggest mistakes you can make is to file a false comprehensive claim." Filing a fraudulent comprehensive claim will decrease your chances of obtaining auto insurance. Also, filing a false or fraudulent comprehensive claim is a criminal offense, considered a felony, which can result in jail time.