What is Comprehensive Car Insurance?
Comprehensive car insurance is a type of auto insurance policy that provides broad protection for your vehicle from damages caused by events other than collisions. Unlike third party or third party fire and theft policies, comprehensive coverage protects your car from things like:
- Theft
- Vandalism
- Falling objects
- Fire
- Natural disasters like floods, earthquakes, or hail
Comprehensive insurance covers the cost of repairs or replacement if your car is damaged or stolen. It is one of the most extensive types of coverage you can get for your vehicle.
Many insurers refer to comprehensive insurance simply as “comp” or “comp cover.” It is sometimes also called “other than collision” coverage since it protects against incidents other than crashes.
Comprehensive is usually offered together with other types of auto insurance, like collision or liability coverage, as part of a multi-policy package. Most insurers won’t sell comprehensive on their own.
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Is Comprehensive Car Insurance Mandatory?
Comprehensive insurance is not required by law. The only mandatory minimum auto insurance coverage in most states is liability insurance.
Liability coverage pays for damage you cause to other people and their property. It does not cover damage to your own vehicle.
So while you are not legally obligated to have comprehensive coverage, it is highly recommended. Without it, you would have to pay out-of-pocket for vehicle repairs or replacement costs if your car was damaged or stolen.
Given how expensive car repairs and replacements can be, comprehensive insurance provides important financial protection for drivers.
What Does Comprehensive Car Insurance Cover?
Comprehensive auto insurance policies generally cover the following:
Theft
If your vehicle is stolen, comprehensive insurance will pay to replace it. Policies may cover the replacement cost or actual cash value of your car.
Replacement cost coverage pays the amount needed to buy a new vehicle of the same make and model. Actual cash value coverage pays the depreciated value, taking into account the car’s age and condition.
Vandalism
If someone deliberately damages your car, comprehensive insurance will cover the repair costs. This includes damage from key scratches, broken windows, spray painting, and more.
Falling or flying objects
If a tree branch, debris, or other objects fall on your parked car, comprehensive insurance will pay for repairs. Damage from loose gravel or rocks hitting your car is also covered.
Fire
Comprehensive policies pay for damage caused by vehicle fires, including those caused by mechanical failure or electrical issues.
Natural disasters
Comprehensive coverage pays for repairs if your car is damaged by floods, earthquakes, hail storms, hurricanes, tornadoes, or other natural disasters.
Collision with animals
Hits with animals like birds, deer, or other wildlife are covered under comprehensive insurance. Collision coverage is for crashes with other vehicles.
Riots
If your car is damaged during a riot, civil commotion, or protest, comprehensive insurance will cover the repairs.
Explosions
Damage from explosions caused by things unrelated to the vehicle, like a nearby gas leak, is covered by comprehensive policies.
What is Not Covered by Comprehensive Insurance?
While comprehensive insurance provides broad protection, there are some limitations on what it covers:
- Damage from a collision with another car, object, or person is not covered under comprehensive. For that, you need collision coverage.
- Mechanical or electrical breakdowns are generally excluded. You need specific add-on coverage for car breakdowns.
- Damage that occurs while driving the vehicle is typically not covered. Comprehensive mainly covers cars that are parked.
- Losses caused by war, nuclear hazards, and terrorism may be excluded.
- Routine maintenance and repairs for wear and tear are not covered.
- Losses that occur when letting someone else drive your car may be limited.
It’s important to read your comprehensive policy closely and be aware of any exclusions or limitations. Also note that you will have a deductible, which is the amount you pay toward a covered repair before the insurance coverage kicks in.
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Is Comprehensive Coverage Worth It?
Whether comprehensive insurance is worth it for you depends on a few factors:
How new is your car?
Brand new cars or vehicles you’re still financing generally need comprehensive coverage. It protects your asset and investment against damage and theft.
Your car’s value
If your car has a higher value, comprehensive insurance is wise to protect you from major repair bills or having to replace the vehicle entirely if it’s damaged or stolen.
Where do you live?
If you street park in areas with high rates of vandalism or car theft, comprehensive coverage brings important peace of mind. It also protects against hazards like floods or hail that may be common in your region.
Your budget
Comprehensive insurance does add to your overall auto insurance premium. If money is very tight, you may decide to forego it, but you take on financial risk.
Overall, comprehensive insurance is recommended for most drivers, given how quickly car repairs and replacements can become expensive. It’s an affordable way to transfer risk away from your own finances.
How Much Does Comprehensive Car Insurance Cost?
Comprehensive insurance premiums vary depending on factors like:
- Your car’s make, model, and value
- Your age, driving record, and credit score
- Where do you live?
- The level of coverage and deductible you choose
Some examples of average costs for comprehensive coverage are:
- For a Honda Accord: $150 to $300 per year
- For a Ford F-150 truck: $300 to $800 per year
- For a Toyota Camry: $200 to $500 per year
Comprehensive premiums are generally lower for older cars with less value. Rates also depend on factors like where you park and your risk of claims. Bundling with other insurance, like home or renters, can also lower your rate.
Overall, comprehensive represents just a portion of your total auto insurance costs. But it provides protection against potentially huge out-of-pocket repair or replacement expenses if your car is damaged or stolen.
How Can I Save on Comprehensive Car Insurance?
Here are some tips to get the lowest comprehensive auto insurance rate possible:
Shop around – Get quotes from multiple insurers to compare rates.
Consider your deductible – Opting for a higher deductible reduces your premium.
Ask about discounts – Inquire about any available discounts, like multi-policy, safety feature, or anti-theft device discounts.
Improve your credit – Insurance companies may offer lower rates to those with better credit.
Reduce coverage on older cars – Consider dropping comprehensive coverage when your car loses value.
Park in a garage – Keeping your car in a locked garage can lower your rate.
Install anti-theft devices – Alarms, vehicle tracking, ignition kill switches, or other anti-theft additions can mean discounts.
Drop collision coverage – Removing collisions along with comprehensive coverage lowers costs further.
Taking some time to shop around, evaluate coverage needs, and utilize available discounts can help minimize the cost of comprehensive protection.
To Recap
Comprehensive car insurance provides financial protection against theft, vandalism, weather damage, and more. While not mandatory, it is highly recommended for most drivers given the high costs of repairs and replacements.
Comprehensive insurance premiums are impacted by your car’s value, your risk factors, and the amount of coverage and deductible you choose. Taking steps to improve your credit, add security features, and shop around can help lower your rates.
Review the details of any policy closely to ensure you understand exactly what comprehensive does and does not cover. With the right comprehensive auto insurance, you gain peace of mind knowing you are protected from out-of-pocket costs if your vehicle is damaged or stolen.
Comprehensive Car Insurance FAQs
Is comprehensive coverage required?
Comprehensive coverage is not required by law. Only liability insurance is mandatory. But comprehensive protection is highly recommended to protect against theft, damage, and other losses.
What’s the difference between comprehensive and collision?
Collision insurance covers repairs when you crash your car. Comprehensive covers other damage from theft, vandalism, weather, and more.
Does comprehensive insurance cover all damage?
Comprehensive does not cover damage from collisions or mechanical breakdowns. It mainly covers your parked car when it’s damaged by events other than a crash.
Can I get comprehensive without collisions?
Most insurers require you to carry both comprehensive and collision insurance together. But some may allow comprehensive by itself, especially on older, low value vehicles.
Does comprehensive coverage cover windshield damage?
Some insurers include windshield coverage under comprehensive, while others require separate glass coverage. Check your specific policy.
Will comprehensive insurance replace a stolen car?
If your car is stolen and not recovered, Comprehensive will pay the replacement cost or actual cash value, depending on your specific policy limits.
Does comprehensive coverage cover flood damage?
Yes, damage from flooding is covered under standard comprehensive auto insurance policies.
Does comprehensive coverage cover mechanical breakdowns?
No, mechanical or electrical failure damage is not included under a standard comprehensive policy. You would need specific breakdown coverage for that.
Is comprehensive insurance expensive?
Comprehensive premiums are usually affordable, often $300 per year or less. The cost depends on factors like your car’s value and your risk profile.
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