Is comprehensive insurance required by law? This question is about Comprehensive Car Insurance Guide

Is comprehensive insurance required by law?

This question is about Comprehensive Car Insurance Guide

Catherine C Ford, Writer

@catherine_ford_1 • 09/01/23 This answer was first published on 09/01/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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No, comprehensive insurance is not required by law in any state, though you may need it if you lease or finance your car. Lenders and lessors usually require comprehensive coverage to protect their investment in a vehicle that%s not fully paid off.

Comprehensive insurance pays for damage or loss caused by theft, natural disasters, vandalism, animals, and other situations that are out of a driveru2019s control. Although comprehensive coverage is not required by law, it may be worth purchasing even if your vehicle is not financed because it can help in the event your vehicle is damaged, totaled, or stolen. This coverage is especially worthwhile if you can't afford the cost of repairing or replacing your car out of pocket.

Types of Car Insurance Commonly Required by Law

You can also check out WalletHub's guide to comprehensive insurance to learn more. You can also reference the full list of minimum coverage requirements in your state.

How much is comprehensive insurance?

Comprehensive insurance costs $160 per year on average, making it an inexpensive coverage option. Like with any type of car insurance, comprehensive insurance premiums vary based on factors like location, the driver’s age, and the vehicle’s value.

Additionally, comprehensive insurance is subject to a deductible, often ranging from $500 to $1,500. The driver can choose her own deductible when purchasing the policy. Higher deductibles mean lower premiums, and vice versa.

Comprehensive insurance covers...

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How much comprehensive coverage do I need?

You need enough comprehensive coverage to pay your vehicle’s actual cash value in the event of covered damage. Although comprehensive insurance is not mandatory under any state laws, it’s generally required for leased or financed cars and considered a good investment otherwise. The specific amount of comprehensive insurance that you should get depends on the value of your particular vehicle, which is affected by factors like make, model, and mileage.

What to Consider When Purchasing Comprehensive...

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What does comprehensive insurance cover?

Comprehensive insurance covers damage to your car caused by events other than collisions with other vehicles or stationary objects. For example, comprehensive insurance helps pay for damage from vandalism, natural disasters, fire, and theft, but it does not cover vehicle repairs after hitting a car.

What Comprehensive Insurance Covers

Theft
Vandalism
Floods
Fires (not related to a collision)
Natural disasters
Animal damage (including hitting a deer or...

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