Comp Insurance: Vehicle Protection

Comprehensive insurance is a type of vehicle insurance that covers damage to your car from causes other than a collision. This includes damage from vandalism, fire, theft, and natural disasters. Comprehensive insurance is optional if you own your vehicle, but lenders and leasing companies will usually require you to have it if you lease or finance your car.

Comprehensive insurance covers theft and vandalism

Comprehensive insurance is a type of auto policy that covers the cost of repairing or replacing your vehicle after a non-collision incident. This includes theft and vandalism.

Theft

Comprehensive insurance covers the cost of repairing or replacing your vehicle if it is stolen. This includes damage caused by theft attempts, such as broken windows or locks. It also covers the cost of replacing stolen parts.

Vandalism

Comprehensive insurance covers the cost of repairing damage caused by vandalism, such as broken windows, spray paint, scratches, dents, and slashed tires. It does not cover the cost of repairing normal wear and tear.

Comprehensive insurance is optional and not required by state laws. However, lenders or leaseholders may require you to have it. It is also known as "other than collision" coverage.

It also covers damage from natural disasters

Comprehensive insurance is a type of auto policy that covers the cost of repairing or replacing your vehicle after a non-collision incident. This includes damage from natural disasters such as:

• Earthquakes
• Floods
• Wildfires
• Hurricanes
• Hail
• Landslides
• Mudslides
• Tornadoes

Comprehensive insurance covers damage from natural disasters that are outside of the driver's control. For example, if a flash flood occurs and damages your vehicle, comprehensive insurance will cover the cost of repairs. It is important to note that comprehensive insurance does not cover damage caused by a collision, regardless of who is at fault.

In most cases, you will not need to file a police report to claim car insurance after a natural disaster. However, it is crucial to have comprehensive coverage in place before a natural disaster occurs, as insurers may place restrictions on policy changes during a storm. Additionally, comprehensive coverage is required by lenders if you lease or finance your vehicle.

It covers accidents with animals

Comprehensive insurance is a type of auto policy that covers the cost of repairing or replacing your vehicle after a non-collision incident. This includes accidents with animals, such as hitting a deer or another large animal that has run into the road. This is one of the most common types of animal collisions, with deer involved in more than 90% of the 1 million-plus car accidents analysed between 1994 and 2021.

Comprehensive insurance covers damage to your car not caused by a collision with another vehicle. This includes damage caused by animals of all types and sizes. If you hit a wild animal, comprehensive insurance will cover the cost of repairs. However, if you swerve to avoid an animal and hit a tree or fence, this type of accident is considered a collision with an object and is covered under collision coverage, not comprehensive insurance.

Comprehensive insurance is typically optional, but if you lease or finance your vehicle, lenders usually require you to purchase this coverage. It usually comes with a deductible, which is the amount you agree to pay before your coverage begins. Deductibles typically range from $250 to $2,000, and the higher your deductible, the lower your monthly premium will be.

In some states, insurance companies are not allowed to raise your rates after you make a comprehensive claim. Even in states where this is not the case, many auto insurance providers will not increase your premiums.

Comprehensive insurance is optional

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 get into a collision, and comprehensive coverage is for non-collision events outside of your control.

Comprehensive insurance is a great way to ensure you are covered no matter what unexpected events come your way. However, it may not be worthwhile if your vehicle's cash value is relatively low and you have a high deductible. On the other hand, it may be worth it if your vehicle has a high cash value, or you cannot afford the cost to repair or replace your vehicle out of pocket.

The cost of comprehensive insurance will vary depending on the value of the vehicle, the zip code where it is registered, and the driver's past insurance history, among other factors.

It's required by lenders if you lease or finance your vehicle

Lenders require you to have comprehensive insurance if you lease or finance your vehicle. This is because comprehensive insurance covers the cost of damage to your vehicle in the case of a non-collision incident, such as theft, vandalism, or damage from falling objects, which could be very costly for the lender if the damage occurs while they still own the vehicle. Comprehensive insurance also covers damage caused by natural events, such as storms, hail, wind, floods, lightning, and earthquakes.

Comprehensive insurance is not a legal requirement, but it is usually mandatory if you are leasing or financing your vehicle. If you own your vehicle outright, you can decide whether to take out comprehensive insurance. However, if you are leasing or financing your vehicle, you will likely be required to take out comprehensive insurance as part of your contract. This is because the lender or leasing company owns the vehicle until you have finished paying off your loan or lease, and they want to protect their investment.

Lenders will often require you to have comprehensive insurance as well as collision insurance, which covers the cost of damage to your vehicle if you are in an accident, regardless of who is at fault. This is known as "full coverage". Lenders may also require additional coverages, such as uninsured motorist coverage or gap insurance.

If you do not have the required coverages on a financed car, the lender may purchase insurance on your behalf and add the cost of the policy to your monthly loan payments. This is known as force-placed insurance and can be very expensive. Therefore, it is important to maintain the required coverages on your vehicle to avoid this penalty.

Frequently asked questions