Why is comprehensive insurance cheaper? This question is about Comprehensive Car Insurance Guide

Comprehensive insurance is cheaper because the events it covers are less likely to occur than a collision, and the maximum payout is your car’s actual cash value (ACV) rather than another driver’s injuries and property damage. Given the lower level of risk, insurers charge less for comprehensive coverage. Comprehensive Insurance vs. Other Types of Coverage Type of Coverage Average Annual Cost Comprehensive $162 Collision $382 Liability $716 MedPay $120 Uninsured Motorist $50-$75 Comprehensive insurance is subject to a deductible, usually between $100 and $1,000. A higher deductible typically means lower premiums, but you should never choose a deductible that costs more than you can comfortably afford. To learn more, check out WalletHub’s guide to comprehensive insurance.

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Why is comprehensive insurance cheaper?

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This question is about Comprehensive Car Insurance Guide

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Leif Olson, Car Insurance Writer

@leif_olson_1 • 03/09/22 This answer was first published on 03/09/22. 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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Comprehensive insurance is cheaper because the events it covers are less likely to occur than a collision, and the maximum payout is your car’s actual cash value (ACV) rather than another driver’s injuries and property damage. Given the lower level of risk, insurers charge less for comprehensive coverage.

Comprehensive Insurance vs. Other Types of Coverage

Type of Coverage	Average Annual Cost
Comprehensive	$162
Collision	$382
Liability	$716
MedPay	$120
Uninsured Motorist	$50-$75

Comprehensive insurance is subject to a deductible, usually between $100 and $1,000. A higher deductible typically means lower premiums, but you should never choose a deductible that costs more than you can comfortably afford.

To learn more, check out WalletHub’s guide to comprehensive insurance.

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Why is it a good idea to have comprehensive car insurance?

Is comprehensive insurance cheaper than liability?

Yes, comprehensive insurance is cheaper than liability insurance – comprehensive insurance costs $162 per year on average, while liability costs an average of $716 per year. Getting comprehensive insurance alone can be difficult, though, as you typically need to buy a full coverage policy to get comprehensive coverage. Full coverage is more expensive than liability insurance because it includes comprehensive and ... read full answer collision insurance, as well as your state’s minimum coverage requirements.

Cost of Liability Insurance vs. Full Coverage by Company

Insurer	Annual Cost of Liability Insurance	Annual Cost of Full Coverage
Geico	$506	$1,680
AAA	$576	$2,125
USAA	$633	$2,004
Progressive	$649	$2,016
Travelers	$691	$2,388
Liberty Mutual	$879	$2,758
State Farm	$919	$2,616
Allstate	$954	$2,328
Nationwide	$1,005	$2,987
Farmers	$1,073	$2,912

Note: Premiums are representative of a 45-year-old good driver in California; individual premiums will vary.

Comprehensive insurance covers damage to your vehicle caused by non-moving events, such as falling objects, fire, theft, or vandalism. Liability insurance covers other drivers’ medical expenses and property damage from an accident you caused.

If you plan on driving your vehicle, comprehensive insurance cannot replace liability insurance because liability insurance is required by almost every state while comprehensive coverage is not required by any states. Furthermore, comprehensive-only policies are not offered by every insurer and are only available for cars in long-term storage.

To learn more, check out WalletHub’s guides to liability insurance and comprehensive coverage.

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Which type of car insurance is cheapest?

The cheapest type of car insurance is state-minimum liability coverage. Liability car insurance costs $716 per year on average, and it is cheaper than a full coverage car insurance policy since it does not include comprehensive and collision coverage. Also known as third-party insurance, liability insurance pays for other drivers’ expenses when the policyholder causes an accident.... read full answer

Liability insurance tends to be the cheapest type of insurance because it offers the most minimal coverage. Other types of coverage like gap insurance and roadside assistance do cost less than liability insurance, but they generally cannot be purchased on their own and the cost will be on top of your liability insurance premiums.

Cheapest Car Insurance Types

Type of Coverage	Average Annual Cost
Liability Insurance	$716
Non-owner Insurance	$200 to $500
Roadside Assistance	$20
Gap Insurance	$20 to $700
Uninsured Motorist Coverage	$50 to $75
Mechanical Breakdown Insurance	$100
Umbrella Insurance	$150 to $300

Note: Data is from Quadrant Information Services, insurance company websites, and third-party sources. Individual pricing may vary.

The cheapest liability insurance is offered by companies that have competitive rates across the board, as well as a variety of discounts to help keep premiums low. Depending on your state and driving history, some companies offer even cheaper insurance premiums than the national average liability insurance cost of $716.

Cheapest Liability Car Insurance from Popular Companies

Geico: $506

AAA: $576

USAA: $633

Progressive: $649

Mercury: $675

Travelers: $691

Esurance: $719

Liberty Mutual: $879

MetLife: $915

State Farm: $919

Annual premiums for the cheapest car insurance companies are representative of a 45-year-old male driver with a good driving history in California. Individual premiums may vary.

To learn more, check out WalletHub’s guide to cheap car insurance.

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