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You need comprehensive insurance if you have a loan or a lease on your car and your lender requires comprehensive coverage. Even if you are not required to have comprehensive insurance, it is still a good idea to purchase it so you are protected against theft, vandalism, fires, natural disasters, and more.
When You May Need Comprehensive Insurance
- Your lender or lessor requires it
- You can’t repair or replace your car out of pocket
- You can comfortably afford the increase to your premiums
- Natural disasters like floods, wildfires, or hurricanes are common in your area
- You live in a high-crime area where theft, break-ins, and vandalism are common
- You often drive on busy highways where gravel and debris could damage your windshield
- Deer strikes or other wildlife-related accidents happen often where you live
You may not need comprehensive insurance if you can comfortably afford to repair or replace your vehicle if it gets totaled. Also, if your premiums cost more than 10% of your car’s value, it’s a good idea to start rethinking whether comprehensive coverage is worth the price.
To learn more, check out WalletHub’s guide to comprehensive insurance.
People also ask
Is 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 CompanyIs it better to have comprehensive or collision?
It is better to have both comprehensive and collision insurance, as the combination is usually required for full coverage. Comprehensive insurance covers damage due to events beyond your control, while collision insurance covers crashing into another car or object.
Why You Should Get Both Comprehensive & Collision Coverage
If your car is leased or financed, your lender or lessor will likely require you to purchase comprehensive and collision insurance together. But even if you...
read full answer by WalletHub, Financial CompanyWhen should you drop comprehensive insurance?
You should drop comprehensive insurance when you can afford to repair or replace your car out of pocket in a worst-case scenario. You should not drop comprehensive insurance if the car is valuable, since the coverage is inexpensive and will usually pay up to the car’s actual cash value, minus a deductible. Additionally, you definitely should not drop comprehensive coverage if it’s required by your lender or lessor. Doing so can result in serious consequences like...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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