Auto Insurance: Comprehensive Coverage, Is It Worth It?

Comprehensive auto insurance is an optional coverage that assists with payments to repair or replace your vehicle in incidents of theft or non-collision damage. It covers damage to your vehicle caused by events outside of your control, such as theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature. While it is not required by state law, lenders may require you to carry comprehensive insurance when you finance or lease a vehicle. The decision to purchase comprehensive insurance depends on factors such as the value of your car, personal preferences, and financial circumstances.

Comprehensive insurance covers theft and vandalism

Comprehensive insurance is an optional coverage that protects your vehicle from damage caused by incidents outside of your control, that are not collisions. This includes theft and vandalism.

Comprehensive Insurance Covers Theft

If your car is stolen, comprehensive insurance will cover the cost of this. This is the case whether your car is stolen and not recovered, or if it is recovered but has been damaged.

Comprehensive Insurance Covers Vandalism

Comprehensive insurance also covers acts of vandalism, such as spray painting, scratching, keying, broken windows, and slashed tires. If your car has been vandalised, you will need to file a police report and contact your insurance company as soon as possible.

What Comprehensive Insurance Doesn't Cover

It's important to note that comprehensive insurance will not cover personal items within the car if they are stolen during a vandalism incident. Coverage for personal belongings would come under renters or homeowners insurance. Comprehensive insurance also does not cover normal wear and tear on your vehicle.

It also covers fire, explosions, and weather damage

Comprehensive insurance coverage is an optional coverage that protects against damage to your vehicle caused by non-collision events outside of your control. This includes fire, explosions, and weather damage.

Fire and Explosions

Comprehensive insurance covers fire damage to your vehicle if the fire is caused by something outside of your control. This includes fires caused by mechanical or wiring defects, or if your vehicle is stolen and the thief burns it to hide evidence. If the fire is caused by a collision with another vehicle or object, your insurance claim will likely be handled by your auto collision insurance.

Weather Damage

Comprehensive insurance also covers damage caused by weather events such as storms, hail, wind, floods, lightning, and earthquakes. This includes damage caused by falling trees or limbs, as well as objects kicked up by the wind or falling off other vehicles.

Comprehensive insurance provides valuable protection against fire, explosions, and weather damage, which can result in costly repairs or even total loss of your vehicle. It offers peace of mind and financial protection in the event of unexpected incidents beyond your control.

It's optional, but often required by lenders

Comprehensive auto insurance is optional, but it is often required by lenders. This type of insurance is defined as optional coverage that protects against damage to your vehicle caused by non-collision events outside of your control. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature.

While comprehensive auto insurance is not required by law in any state, it is usually required by lenders if you are leasing or financing your vehicle. This is because lenders view your vehicle as collateral for the loan, and they want to protect their investment. By requiring comprehensive coverage, lenders can ensure that their collateral is protected from damage or destruction that can result from non-collision events.

If you own your vehicle outright, the decision to purchase comprehensive coverage is up to you. It may be a good idea to consider the value of your car, your financial situation, and the likelihood of non-collision damage. For example, if you live in an area prone to weather-related disasters or car theft, comprehensive coverage could provide valuable protection.

Comprehensive coverage can give you peace of mind, knowing that your vehicle is protected in a wide range of scenarios. It is worth considering when deciding on the right insurance coverage for your needs.

It doesn't cover collisions or damage to another person's property

Comprehensive auto insurance is an optional coverage that assists with payments to repair or replace your vehicle in incidents of theft or non-collision damage. It is often confused with collision coverage, which covers the cost of repairs to your vehicle after a car accident. Comprehensive insurance generally protects your vehicle while it is parked.

Comprehensive auto insurance does not cover damage to another person's property. It also does not cover any medical expenses or the value of items stolen from your car. So, if you swerve to miss a deer and hit a tree, comprehensive coverage doesn't apply because this type of accident is considered a collision with an object. If another vehicle hits your car, this will also not be covered by comprehensive insurance.

Comprehensive insurance is a great option for those seeking peace of mind and wanting their car protected in all scenarios. It is worth noting that lenders may require you to carry comprehensive insurance when you finance or lease a vehicle.

It's relatively inexpensive compared to collision insurance

Comprehensive and collision insurance are types of car insurance that cover physical damage to your vehicle. While collision insurance covers damage to your car in the event of a crash, comprehensive insurance covers non-collision events, such as theft, fire, or weather damage.

Comprehensive insurance is relatively inexpensive compared to collision insurance. On average, US drivers pay $263 per year for comprehensive coverage and $723 per year for collision insurance. This price difference can be attributed to the fact that collision insurance covers a wider range of incidents and offers more robust coverage. Collision insurance pays for repairs to your vehicle after an accident, regardless of who is at fault. It covers damage from crashes involving other vehicles, objects, or buildings, as well as single-vehicle crashes and rollovers. On the other hand, comprehensive insurance covers non-collision incidents, such as theft, fire, vandalism, and natural disasters. It also includes minor windshield damage and damage caused by falling or airborne objects.

The cost of comprehensive and collision insurance depends on various factors, including age, gender, location, driving record, credit score, and the type of car. While neither type of insurance is legally required, lenders will typically require both if you have a loan or lease on your car. Additionally, collision coverage is often mandated by the company financing your vehicle.

Although comprehensive insurance is cheaper than collision insurance, it still provides valuable protection for your vehicle. It covers a range of incidents that are beyond your control, giving you peace of mind and financial protection. Comprehensive insurance is particularly important if you live in an area with a high incidence of car theft, vandalism, severe weather, or animal collisions.

When deciding whether to purchase comprehensive insurance, consider the value of your car and your financial situation. If your vehicle is older and not worth a lot, comprehensive insurance may not be worth the cost. However, if you cannot afford to repair or replace your vehicle out of pocket, comprehensive insurance can provide valuable protection.

Frequently asked questions