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The difference between full coverage and comprehensive insurance is that a full coverage policy includes both comprehensive insurance and collision insurance, along with any car insurance coverage your state requires. Comprehensive insurance covers damage to a car from things other than accidents, like theft or fire.
Comprehensive Only Provides Partial Coverage
Comprehensive insurance mostly covers events outside of a driver’s control, or incidents that happen when a car is parked. For instance, it covers vehicle damage due to natural disasters, extreme weather events, and vandalism.
You need to combine it with collision insurance to fully cover most incidents that could damage your car. Comprehensive and collision coverage are not mandatory in any state, but some lenders and lessors will require them on a leased or financed car.
More Info on Full Coverage
Since every state has different car insurance requirements, full coverage can also include several other types of coverage. For example, personal injury protection (PIP) and MedPay are required in certain states, and would therefore be included in full coverage in these locations. The same is true of liability coverage.
In addition, remember that even a supposedly full coverage policy will not cover everything. Things like rental car reimbursement while your own car is being repaired or replaced are available separately and aren’t usually included in the term full coverage.
When shopping for insurance, it’s best to look past labels like full coverage and instead consider your state’s laws and your own financial situation. And if an insurance agent or broker offers to sell you full coverage, be sure to clarify exactly what’s included.
People also ask
Is comprehensive insurance the same as full coverage?
Comprehensive insurance and full coverage are not the same thing. With full coverage, you're getting comprehensive coverage along with collision insurance, liability insurance, and any other types of car insurance required by the state. Comprehensive insurance coverage is specific to non-accident-related vehicle damage, such as damage caused by vandalism or natural disasters.
Comprehensive Insurance vs. Full Coverage
| Aspects | Comprehensive Insurance | Full Coverage Insurance |
When should you drop full coverage on your car?
You should drop full coverage insurance on your car when the cost of the insurance equals or exceeds the potential payout, should a covered event occur. You may also want to drop full coverage if you are willing to pay for repairs out of pocket, or if you would prefer to replace your vehicle if it’s damaged.
For example, an older car with high mileage may not be worth costly repairs, and you might want...
read full answer by WalletHub, Financial CompanyIs comprehensive insurance worth it?
Comprehensive insurance is worth it if the premium is a small percentage of the car’s value. Comprehensive insurance might also be worth it if the policyholder cannot afford to replace the vehicle without comprehensive coverage, or if the car is driven or parked in a particularly risky area.
Although comprehensive insurance is not mandatory in any state, dealerships and lenders frequently require comprehensive insurance, along with collision coverage, on leased or financed cars. In...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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