What is comprehensive in car insurance?

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Comprehensive car insurance provides financial protection against damage to your vehicle from a broad range of dangers besides just collisions. Also referred to as "other than collision" coverage, a comprehensive policy covers your car from risks like theft, vandalism, weather events, fire, and even animal strikes. While optional, comprehensive insurance is recommended for most car owners to safeguard their auto investment against unpredictable losses.

What is Comprehensive Car Insurance?

Comprehensive coverage is an optional add-on component of an auto insurance policy that pays to repair or replace your vehicle if it's damaged by any cause other than a collision. Some key facts about comprehensive insurance:

Also called "other than collision" since it covers non-collision damage
Protects against theft, vandalism, weather, fire, explosions, riots, animal strikes, and more
Typically has a deductible amount you pay before coverage kicks in
Pays claims up to the actual cash value (ACV) of your car at the time of loss
Premium cost varies based on car's value, location, and your deductible

Comprehensive along with collision make up the two main types of coverage for physical damage to your own vehicle. Liability insurance is mandatory in most states to cover damage you cause to others.

What Does Comprehensive Insurance Cover?

Comprehensive protection encompasses a wide variety of non-collision damage causes, including but not limited to:

Theft

One of the biggest risks comprehensive insurance covers is theft of your vehicle, whether in part or entirety. It provides reimbursement in case your car is stolen and not recovered, or for the cost of repairs if it's damaged during theft or when recovered. Comprehensive also pays if parts like airbags are stolen from your auto.

Vandalism

If a vandal smashes your windshield, spray paints your car, or damages it in other ways, comprehensive will pay for repairs. Egging damage is also covered.

Weather Events

Flying debris, hail damage, floods, falling trees/limbs, snow/ice damage, and other weather hazards are covered by comprehensive when they damage your vehicle.

Fire

Comprehensive will cover repairs or replacement if your vehicle catches fire from mechanical issues, electrical problems, gas tank explosions and other non-collision causes.

Animal Collisions

Striking an animal like a deer, moose, squirrel, or even birds is considered a comprehensive claim. Damage from encounters with large animals can be extensive.

Riots

Civil unrest and riots can lead to smashed windshields, dented panels, and other vandalism. Comprehensive insurance covers such damage.

Explosions

If your car is damaged or destroyed by an explosion not related to a crash, comprehensive will cover the loss. Gas tank explosions fall under this scenario.

Falling Objects

Rocks, trees, construction debris and other falling objects that hit your car will be covered under the comprehensive portion of your policy.

Comprehensive also pays for damage from power surges to electrical systems, rodents or insects chewing wires, windstorms, and other uncommon but possible mishaps. The key is that comprehensive covers anything that damages your car EXCEPT collision or overturn accidents.

How Comprehensive Insurance Differs from Collision and Liability Coverage

To understand comprehensive insurance, it helps to distinguish it from the other major components of a standard auto policy:

Collision - Covers repairs to your vehicle when damaged in an accident, regardless of fault. Subject to the deductible.
Liability - Pays for injuries or property damage you cause to others if you are at fault in an accident. Bodily injury and property damage liability are mandatory in most states.

Comprehensive and collision are both types of physical damage coverage for your own vehicle. Liability covers damages you cause to others. Common examples:

Collision covers hitting a tree, rollover accidents, and multi-car pileups
Liability pays for injury claims from other parties you injured
Comprehensive covers hail damage, theft, flooding, vandalism

Choosing both collision and comprehensive provides complete coverage from all accident causes, while liability protects you from the biggest financial risk - harm to others.

How Does Comprehensive Insurance Work?

When you file a comprehensive claim, the process generally works as follows:

The damage or loss occurs from a covered cause like theft, hail, fire, vandalism. Collision accidents are not covered.
You pay the agreed deductible amount out of pocket for repairs or replacement. Comprehensive deductibles are commonly $250, $500 or $1,000. Higher deductibles reduce your premium cost.
The insurer then pays the repair shop or reimburses you for the remaining repair bill or the vehicle's actual cash value if it's declared a total loss.
The insurer will only pay claims up to the car's depreciated value at the time of loss, minus your deductible.
Your premium may increase at renewal due to the claim. Higher deductibles can help limit rate hikes after a claim.

Comprehensive provides peace of mind by limiting your out-of-pocket costs from damage by causes outside your control. Premiums and deductibles should align with the value of your vehicle - you don't need high limits on an older car with low book value.

Who Needs Comprehensive Insurance?

Comprehensive coverage is optional, but recommended for most drivers to protect their vehicle investment against disasters, theft, and random acts of damage. Here are some factors to consider:

Most Car Owners

Comprehensive makes sense for anyone who couldn't easily absorb the cost to replace their vehicle if it's destroyed or stolen. Total losses from theft, fire, flooding, and animal strikes are covered by comprehensive insurance.

New and Late Model Cars

The first 5-6 years of a vehicle's life carry the highest value and replacement cost. Comprehensive coverage is critical for expensive new and late model used cars. The premium cost is also lowest when cars are newer.

Leased and Financed Vehicles

Banks and lenders almost always require you carry comprehensive (and collision) coverage to protect their collateral interest in your financed vehicle.

High Crime Areas

If you live in a region with high rates of auto theft and vandalism, comprehensive becomes more important and more affordable due to the increased risks. Urban areas typically have costlier comprehensive premiums.

Extreme Weather Regions

Hail, floods, windstorms, and severe winters can wreak havoc on your car. Comprehensive ensures you don't take a big financial hit from random weather events and natural disasters.

On the other hand, dropping comprehensive (and collision) could make sense if you own an older vehicle worth less than $2,000-$3,000. The premium savings may outweigh the reduced risk with a minimal value car.

Comprehensive insurance keeps your assets protected and limits financial worries if catastrophe strikes your vehicle. For most drivers, the relatively low cost makes comprehensive coverage a wise investment.

What Does Comprehensive Insurance Cost?

Comprehensive insurance premiums vary substantially based on your vehicle's value, your deductible, and location risk factors. On average, drivers pay $125 per year for comprehensive coverage - much less than the $1,600 per year spent on collision coverage.

Here are some factors that determine your comprehensive auto insurance rates:

Vehicle Value

The more expensive your car, the higher the comprehensive premium since repairs and replacement costs are higher. Comprehensive rates for:

Older used cars - $100-$300 per year
Late model cars - $200-$600 per year
New cars/luxury vehicles - $600-$1,200+ per year

As the car depreciates each year you own it, the comprehensive premiums gradually decline as well.

Deductible Amount

Choosing a higher deductible saves substantially on your comprehensive premium. For example:

Comprehensive Deductible	Average Premium
$100	$282 per year
$500	$154 per year
$1,000	$134 per year

Of course, you pay more out-of-pocket if you file a claim. Choose a deductible amount you can comfortably afford if damage occurs.

Location/Garaging Zip Code

Insurers charge more for comprehensive coverage in regions with higher rates of animal collisions, severe weather, theft, vandalism, and uninsured drivers. Urban areas also tend to have costlier comprehensive premiums.

Vehicle Use

If you use your car for business or rideshare driving, comprehensive rates will be somewhat higher than for standard personal use.

Claims History

Filing comprehensive claims can increase your premiums moderately at renewal time. Higher deductibles help minimize the rate impact of claims.

Bundling your comprehensive policy with the same insurer that provides your auto liability and collision coverage can also save you 10% or more. Overall, comprehensive is one of the most affordable components of auto insurance.

Is Comprehensive Insurance Required?

While nearly every state mandates some level of liability coverage, comprehensive and collision insurance are optional. Here are some instances where comprehensive coverage is required or strongly recommended:

Leased and Financed Vehicles

If you lease or have an auto loan, comprehensive and collision coverage is almost always mandatory. The leasing company or lender requires it to protect their financial interest in your car. Make sure to obtain the mandated minimum limits.

Rideshare Driving

Major rideshare companies like Uber and Lyft require drivers carry comprehensive and collision coverage, even if your state doesn't mandate it. This ensures your car is covered for damage incurred while transporting passengers.

High-End Cars

Many insurers require drivers of extremely expensive luxury vehicles to carry comprehensive and collision coverage. Repair and replacement costs for top-end supercars are too high to risk going without full coverage.

Teenage Drivers

Adding your teenager to your policy often requires getting comprehensive and collision coverage for their protection, even if it's not mandatory in your state. This ensures repairs or replacement if they damage the vehicle.

Check with your insurer, lender, or leasing agent to confirm required insurance coverage amounts. Purchasing only the state minimum liability provides no protection for your own vehicle. Comprehensive fills a key gap for insured losses other than collisions.

Tips for Getting the Lowest Comprehensive Insurance Rates

While comprehensive premiums are among the most affordable coverage components, there are still ways to minimize costs:

Raise your deductible - Going from $200 to $500 cuts rates up to 40%
Bundle with same insurer - Also carry your collision and liability with the same company
Check discounts - Multi-policy, anti-theft devices, good student, and safe driver can all lower comprehensive premiums
Limit claims - Avoid small claims to limit rate increases at renewal
Compare quotes - Rates vary among insurers, so shop around for the best comprehensive price

Maintaining a clean driving record, good credit score, and selecting a later model used car over a brand new vehicle can also save you money on comprehensive insurance.

Comprehensive coverage provides strong protection for your vehicle investment against unpredictable damage from road debris, severe weather, theft, vandalism and even animal collisions. While not mandatory, comprehensive car insurance is a relatively inexpensive add-on that pays for itself the first time a stray shopping cart dents your door or hailstorm cracks the windshield.

FAQs

What does comprehensive car insurance cover?

Comprehensive car insurance covers damage to your vehicle caused by non-collision events, such as theft, vandalism, fire, falling objects, weather-related damage, and accidents with animals. It also covers windshield and glass damage.

Is comprehensive coverage required?

Comprehensive coverage is optional, but if you finance or lease your car, your lender may require it.

What's the difference between comprehensive and collision insurance?

Comprehensive insurance covers non-collision-related damage to your vehicle, while collision insurance covers damage caused by a collision with another vehicle or object.

Should I purchase comprehensive auto insurance?

Whether or not you should purchase comprehensive auto insurance depends on your personal preferences, financial circumstances, and the value of your car. If you would have a hard time coming up with cash to repair or replace your car on your own if misfortune strikes, comprehensive coverage could be worth it.

How much does comprehensive insurance cost?

The cost of comprehensive insurance varies depending on several factors, such as your car make and model, driving record, credit history, and zip code. According to Bankrate, the average cost of full coverage car insurance, which includes comprehensive coverage, is $168 per month.

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