How is comprehensive car insurance calculated?

I am curious how my insurance company decides the cost of my comprehensive insurance. How do they calculate this?

Insurance can definitely be hard to understand, especially given the different types out there. Comprehensive coverage protects you from damage not caused by an accident.
To calculate your comprehensive coverage cost, insurance companies use the actual cash value of your vehicle, which is its replacement cost minus the vehicle’s depreciation. This figure is the most that an insurance company will payout. That means the cheaper your car, the lower your comprehensive coverage premiums will be.
Though comprehensive coverage is often optional, you may be required to have it if you have an auto loan.
If you’re looking for the best rates on comprehensive insurance, find a policy with Jerry. Jerry will give you rates to compare rates from up to 50 providers. Once you make your choice, Jerry will take care of the rest. The average Jerry user saves $879 per year on car insurance.
melanie reiff
Answered on Oct 27, 2021

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