In continuing our series today, we'll cover comprehensive insurance coverage. Comprehensive covers most damage claims excluding a car/car collision.

Typically people purchase comprehensive coverage for cars less than 10 years old as part of their car insurance policy. Instead of covering simple car accidents (collision coverage), comprehensive coverage may cover damage caused by things besides car collisions, such as wind, flood, or other weather damage. It also covers vandalism, theft, or other such events in which the owner or driver isn't responsible.

Like collision coverage, comprehensive coverage is likely optional but may be required if you financed your vehicle. In that case, the bank has a secured interest on the vehicle, so you must insure the car with such coverage to satisfy the car loan. Many lenders require owners to keep comprehensive coverage on the vehicle for the entire term of the loan.

People with expensive or luxury cars should likely purchase comprehensive coverage to protect their investment and to have greater financial security.

While I talked yesterday about collision deductibles, a majority of motorists have lower deductibles for comprehensive. This is because there is less chance of having a high amount claim. Common deductibles for comprehensive coverage range from $0 (no deductible) to $500 for each claim. Generally, the lower your deductible, the more the coverage will cost, but it is a good idea to ask your agent what the price is for a lower deductible. Many times lowering your deductible is relatively cheap. Lowering my deductible from $1000 to $500 only cost $30 or so every six months- your rates will vary.

In many cases with older vehicles, purchasing such coverage may not be a smart idea. On an older vehicle, the cost of the coverage may equal any claims in a matter of a year or two. Consider it and talk with your agent.