When weather wrecks your car, having the right coverage can make a big difference. Without the right type of car insurance, you could be responsible for weather-related damage.
Comprehensive coverage can help pay for damage to your vehicle caused by non-crash-related incidents, including the weather. If you have comprehensive coverage, it can help pay for damage due to:
Comprehensive coverage is optional in all 50 states. But your lender will likely require it if you have an auto loan or lease. Comprehensive car insurance can help pay for repairs due to weather-related damage. If you don’t have comprehensive coverage, you could be on the hook for repairs or a replacement. Or there may be other ways to get help, but you’ll have to qualify.
If your car gets damaged in a federal emergency zone, you may qualify for a low-interest loan from the Small Business Administration (SBA), which you can use to help repair or replace your vehicle. If the SBA determines that you can’t afford a loan, you may qualify for assistance from the Federal Emergency Management Agency (FEMA) through its “Other Needs Assistance” program. To qualify for FEMA assistance, you must maintain at least the minimum amount of liability coverage your state requires.
If you need to file a claim under your comprehensive coverage, you’ll have to pay a deductible. A deductible is the portion of the repair costs you have to cover out of pocket. The insurance company pays for costs that exceed your deductible amount up to the vehicle’s actual cash value. To find your vehicle’s pre-accident value, use our valuation tool.
When you purchase coverage, you get to choose the deductible amount. Policies with higher deductibles typically have lower premiums and vice versa. But it’s crucial to select an amount you can afford to pay if you need to file a claim. Don’t select a high deductible to get a reduced rate on your premium if you can’t afford to pay it.
In general, higher deductibles work best for more expensive cars, and lower deductibles are better for less expensive vehicles. But you’ll need to decide what deductible amount is better for you based on what you can afford, the value of your car, and how much it would cost to repair your car.
If your vehicle sustains weather-related damage and you need to file a claim, contact your car insurance company as soon as you can.
If you live in an area where severe weather is typical, it’s a good idea to consider comprehensive insurance. To help you decide whether paying for coverage is worth it, find out what the actual cash value of your vehicle is. If the value of your car is less than the cost of the premium plus your deductible, it probably doesn’t make sense to carry it. But if your vehicle’s worth more than that, having comprehensive could help reduce your out-of-pocket costs if you need to file a claim.
According to the Insurance Information Institute, the average cost of comprehensive insurance is about $134 per year. You may pay more or less than the average, based on multiple factors. For example, choosing a higher deductible can help reduce your insurance rate.
Since comprehensive coverage pays out up to the actual cash value of your vehicle, you’ll likely pay more to insure an expensive car than a cheaper one. Insurance companies also consider your driving history when determining rates. If yours is spotty, be prepared to pay more than someone with a clean record.
