Full Vs Comprehensive Auto Insurance: What's The Real Difference?

Comprehensive 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 things like theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature. On the other hand, full-coverage insurance includes comprehensive insurance, collision insurance, and liability insurance, as well as any other state-mandated types of coverage. It covers damage to your vehicle caused by collisions with other vehicles or objects, regardless of fault. So, while comprehensive insurance covers non-collision events, full-coverage insurance includes both collision and non-collision events, providing a more comprehensive package.

Comprehensive insurance covers non-collision damage

Comprehensive insurance covers 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. For example, if you hit a deer while driving, comprehensive insurance would cover the damage. However, if you swerve to avoid the deer and hit a tree, this would be considered a collision with an object and would not be covered under comprehensive insurance.

Comprehensive insurance is often referred to as "other than collision" coverage, as it covers damages that are not caused by collisions with other vehicles or objects. It helps pay for repairs over your deductible, so you don't have to bear the entire cost of repairs on your own. The maximum payout is based on the actual cash value of your vehicle, and you will be responsible for paying your selected deductible.

Comprehensive insurance is typically required by lenders if you finance or lease a vehicle. It is optional if you own your vehicle outright, and the decision to purchase it depends on factors such as the value of your car, your financial circumstances, and your personal preferences.

Comprehensive insurance provides peace of mind by covering unexpected events that are beyond your control. It is important to note that comprehensive insurance does not cover damage or injuries caused to others while driving, your own injuries after an accident, damage from collisions, personal belongings inside your car, damage from potholes, or normal wear and tear.

Full coverage includes comprehensive and collision insurance

Comprehensive insurance is an optional coverage that protects your vehicle from damage 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. Comprehensive insurance is often confused with collision coverage. While both types of insurance protect your vehicle, collision coverage is for when you collide with another vehicle or object, regardless of who is at fault.

Full coverage auto insurance is an ambiguous term that refers to a combination of comprehensive and collision insurance, along with any other state-mandated coverage. So, when you hear the term "full coverage", it typically includes comprehensive insurance.

Full coverage is often used by auto lenders as a requirement before you sign a car loan or lease. It is not an actual insurance product, but rather a combination of different types of coverage. In addition to comprehensive and collision insurance, full coverage can also include liability insurance, which is required in most states. Liability insurance covers injuries and damage you may cause to others on the road.

When shopping for insurance, it's important to look beyond labels like "full coverage" and consider your state's laws and your own financial situation. Even with full coverage, there may be certain situations that are not covered, such as rental car reimbursement while your own car is being repaired. Be sure to clarify with your insurance provider exactly what is included in your policy.

Comprehensive insurance is optional

Comprehensive insurance is defined as an 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.

Comprehensive insurance is often confused with full coverage. While comprehensive insurance covers non-collision-related damage to your vehicle, full coverage includes both comprehensive and collision insurance, plus any other coverage your state mandates, such as liability insurance. Liability insurance covers injuries and damage you may cause to others on the road and is required by law in most states.

Comprehensive insurance is typically required by lenders if you lease or finance your vehicle because it helps protect their interest in the vehicle. If you own your vehicle outright, you can decide whether comprehensive coverage is worthwhile based on the value of your car, your personal preferences, and your financial circumstances.

For example, if your car has a high cash value or you cannot afford the cost of repairs or replacement in the event of damage, comprehensive coverage could provide valuable protection. On the other hand, if your vehicle's cash value is relatively low and you have a higher deductible, comprehensive coverage may not be worth the additional cost.

In summary, comprehensive insurance is optional for vehicle owners, but it is often required by lenders for leased or financed vehicles. It provides protection against a wide range of non-collision events and can offer peace of mind, especially for those with valuable vehicles or limited financial resources. The decision to opt for comprehensive coverage depends on a combination of factors, including the value of the vehicle, personal preferences, and financial considerations.

Full coverage depends on state requirements

The definition of "full coverage" auto insurance varies depending on state requirements. In general, "full coverage" includes comprehensive and collision insurance, as well as any other coverage mandated by the state. For example, liability insurance is required in most states. Other types of coverage that may be included in "full coverage" depending on the state include personal injury protection (PIP) and MedPay.

In addition, "full coverage" may include other types of insurance mandated by lenders, such as roadside assistance. Therefore, it is important to clarify with your lender and insurer exactly which coverages are required and right for your needs.

It is worth noting that "full coverage" does not cover everything and usually does not include rental car reimbursement while your own car is being repaired or replaced. When shopping for insurance, it is recommended to look past labels like "full coverage" and instead consider your state's laws and your own financial situation.

Comprehensive insurance covers theft

Comprehensive insurance is optional, and it's important to note that personal property (such as cell phones, laptops, and wallets) stolen from your car won't be covered by comprehensive auto insurance. These items would typically be covered by a homeowners, renters, or condo policy.

Comprehensive insurance will, however, cover the cost of your vehicle if it is stolen and not recovered. It may also cover any resulting damages if your vehicle is recovered after being stolen, such as broken windows or other vandalism that occurred during the theft.

In addition to theft, comprehensive insurance also covers damage to your vehicle from events outside your control, such as fire, severe weather, falling objects, accidents with animals, and vandalism. It is designed to give you peace of mind and protect you from unexpected events.

The cost of comprehensive insurance is typically based on the actual cash value of your vehicle, and you will be responsible for paying your selected deductible. While it is not required by law in any state, lenders may require you to carry comprehensive insurance if you finance or lease a vehicle.

Frequently asked questions