Auto Insurance Comprehensive Deductibles Explained

Comprehensive car insurance is an optional add-on to your auto insurance policy that covers non-collision incidents, such as theft, vandalism, natural disasters, and damage from falling objects. It is often subject to a deductible, which is the amount you must pay before your insurance coverage kicks in. The comprehensive deductible for auto insurance is typically between $250 and $1,000, but can range from $50 to over $2,000 depending on your insurer and state laws. This deductible is paid per incident, so you will need to pay it each time you file a comprehensive claim.

Comprehensive deductible vs. collision deductible

Comprehensive and collision insurance are both optional forms of coverage that protect your vehicle, but they differ in the type of incident they cover. Comprehensive insurance covers damage to your vehicle from unexpected non-collision incidents, such as theft, animal damage, falling trees, and weather damage. Collision insurance, on the other hand, covers damage to your vehicle resulting from a collision with another vehicle or object. While neither type is required by state law, they are typically required for a car loan or lease.

Comprehensive Deductible

The comprehensive deductible is the amount you pay towards repairs from covered perils before your comprehensive insurance kicks in. Comprehensive coverage protects you, your passengers, and your vehicle from hazards like theft, vehicle/animal collisions, glass damage, damage from falling objects, vandalism, fire, flood, and other severe weather damage. The comprehensive deductible is typically paid per incident, meaning you will pay the deductible every time you file a claim. The amount of the deductible varies depending on your state's laws and insurance company guidelines, usually ranging from $100 to $2,500.

Collision Deductible

The collision deductible is the amount you pay towards repairs before your collision insurance coverage begins. Collision coverage helps repair your car from traffic accident damages, including accidents with other vehicles, regardless of fault, single-car rollovers, and accidents with stationary objects. The collision deductible is typically chosen by the policyholder, with amounts usually ranging from $100 to $2,000.

When selecting your comprehensive and collision deductibles, it is important to consider how much you are willing to pay out of pocket if your car is damaged. Choosing a higher deductible can help lower your insurance premium, but it will result in higher out-of-pocket costs if an accident occurs. It is recommended to strike a balance between paying too much in premiums and not paying more than you can afford out of pocket.

Comprehensive coverage for non-collision incidents

Comprehensive insurance coverage is an optional add-on protection for your vehicle against non-collision incidents that are outside of your control. It covers repair and replacement costs caused by things other than a collision, such as:

• Storms, floods, fires, hail, wind, lightning, and earthquakes
• Vandalism
• Theft and associated damage
• Collisions with animals, such as deer
• Falling objects, such as rocks, tree limbs, or trees themselves
• Civil disobedience, like a riot
• Damage from objects kicked up by or falling off cars

Comprehensive insurance does not cover damage to your car caused by a collision with another vehicle or object (except for collisions with animals), damage to another person's car due to a collision, or medical expenses, including injuries to yourself, passengers, or those in other vehicles. It also does not cover normal wear-and-tear costs, such as replacing worn tires and windshield wipers, or any mechanical issues.

Comprehensive insurance is typically required by lenders if you are leasing or financing your vehicle. If you own your vehicle outright, you can decide whether to purchase comprehensive coverage. It is worth considering if you live in an area where vehicle theft is prevalent or severe weather-related occurrences are common.

Comprehensive coverage for vehicle theft

Comprehensive car insurance is an optional coverage that provides an extra layer of protection for your vehicle against events outside of your control. It covers repair and replacement costs caused by incidents other than collisions, including theft.

Comprehensive coverage will pay out if your car is stolen and not recovered, reimbursing you for the current value or actual cash value (ACV) of your vehicle, minus your deductible. If your stolen car is recovered but damaged, comprehensive coverage will also pay for the repairs, up to the ACV of your car, minus your deductible.

Comprehensive coverage also pays to replace stolen car parts, such as a catalytic converter, but it typically does not cover custom parts or equipment, like an aftermarket sound system. Additionally, it covers damages caused by theft attempts, such as broken windows or other vandalism.

What Comprehensive Coverage Doesn't Include

It's important to note that comprehensive coverage does not include personal items stolen from your vehicle. For that, you would need to file a claim under your home, renters, or condo insurance policy. Comprehensive coverage also does not include the cost of a rental car while your stolen vehicle issue is being resolved. For that, you would need to add rental reimbursement insurance to your policy.

Choosing a Comprehensive Deductible

When choosing a comprehensive deductible, you'll need to consider your budget, the value of your vehicle, your savings, and the likelihood of making a claim. Typically, deductibles range from $100 to $2,500, but the specific options available to you will depend on your state laws and insurance company guidelines. A lower deductible is beneficial if you're prone to smaller, more frequent claims, while a higher deductible can help lower your premium costs.

Comprehensive coverage for weather damage

Weather-related damage to your car can be covered by comprehensive auto insurance. This includes damage from natural disasters such as hurricanes, floods, tornadoes, and even volcanoes. Comprehensive coverage can also protect your vehicle from non-natural weather events, like heavy rain, hail, and falling objects.

Comprehensive coverage is optional in all 50 states, but your lender will likely require it if you have an auto loan or lease. If you don't have comprehensive coverage and your car is damaged by weather, you will have to pay for repairs or a replacement yourself.

In the case of flooding, comprehensive coverage can protect your vehicle against water damage caused by heavy rains, hail, and fallen tree branches during a storm. It's important to note that insurance companies often put "binding restrictions" in place once a major storm is imminent, preventing changes to policies or the addition of new ones. So, if you don't already have comprehensive coverage, you may not be able to add it before a storm hits.

Hail damage is also covered by comprehensive insurance. Hail can cause extensive damage to your vehicle, including dents and broken windshields. If your car is damaged by hail, your insurance company will likely cover the cost of repairs or even replacement if it's declared a total loss due to hail.

In addition to natural disasters and hail, comprehensive coverage can also protect your vehicle from wind damage and fallen trees. Strong winds can cause flying debris that damages your vehicle, such as smashed windows and dents. Fallen trees and branches are typically covered as well, regardless of whether the tree was on your property or your neighbour's.

To file a claim for weather-related damage, contact your insurance company as soon as possible and provide as many details and photos of the damage as you can. Remember that you will need to pay a deductible, so compare the damage costs with your deductible to decide if it makes more sense to pay out of pocket.

Comprehensive coverage for civil unrest

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 from events outside of your control, such as natural disasters, vandalism, falling objects, and collisions with wildlife. Comprehensive coverage for civil unrest falls under this category of insurance.

Civil unrest, often associated with insurance and legal contexts, refers to tumultuous situations where groups of individuals engage in disruptive behavior, leading to property damage, social upheaval, and public safety concerns. It typically involves societal tensions, political grievances, economic disparities, or other underlying issues, and may include violence, vandalism, looting, and other forms of destructive behavior.

Standard commercial policies typically include coverage for physical loss or damage to insured premises and other business property resulting from looting, vandalism, and riots. Homeowners' insurance typically covers property damage, loss of possessions, and additional living expenses if the insured property becomes uninhabitable. Business insurance policies often cover damages to commercial properties, inventory, and may include provisions for business interruption losses.

Auto insurance, specifically the comprehensive portion of an automobile policy, covers damage to vehicles due to riot or civil commotion. This coverage is optional and separate from collision coverage and mandated liability insurance. It is important to note that comprehensive coverage for civil unrest may vary depending on the specific terms and definitions in the insurance policy.

Policyholders residing or operating businesses in high-risk areas prone to civil unrest may face higher insurance premiums or deductibles. The deductible amount chosen will impact the out-of-pocket costs and insurance rates. A lower deductible results in higher insurance rates but lower out-of-pocket repair costs, while a higher deductible leads to lower insurance rates but higher out-of-pocket expenses for repairs.

Frequently asked questions