What Is Comprehensive Insurance?
Comprehensive insurance is an optional type of car insurance coverage that pays for damage to a vehicle caused by non-collision events that are beyond your control. For example, comprehensive insurance covers damage due to falling objects, fire, theft, flooding, vandalism, wind, and more.
What Does Comprehensive Insurance Cover?
Comprehensive insurance covers repairs to your vehicle after a non-collision accident. The maximum amount you can be paid by comprehensive insurance is typically the actual cash value of your vehicle before the accident.
Learn more about what comprehensive insurance covers.
How Does Comprehensive Insurance Work?
Comprehensive insurance works by providing protection for your vehicle in case it is damaged by events that are out of your control, such as natural disasters or vandalism. Without comprehensive insurance, you risk having to pay out of pocket to repair or replace your vehicle should an incident occur.
Key Things to Know About How Comprehensive Insurance Works
- You can purchase comprehensive insurance from any auto insurance company, as it is a very common type of insurance.
- You will likely be required to purchase collision insurance when you get comprehensive coverage, since most insurance companies do not sell comprehensive insurance by itself.
- Comprehensive insurance is not required by law, but a lender or lessor might require it.
- You can file a comprehensive insurance claim by calling your insurance company and providing them with all the information you have about the accident. You may also be able to file your claim on your insurer’s website or app.
- You will always file comprehensive claims with your own insurance company.
- When you file a comprehensive insurance claim, you will be responsible for paying a deductible.
- If your insurance company approves the claim, a repair shop authorized by your insurer will fix the damage and you will pay your deductible directly to the repair shop.
Learn more about how comprehensive insurance works.
How Much Is Comprehensive Insurance?
Comprehensive insurance coverage costs an average of $160 per year, making it far cheaper than other types of car insurance. The cost of a comprehensive car insurance policy is calculated based on the actual cash value (ACV) of the vehicle – its replacement cost minus depreciation. Since the ACV is the maximum amount that a comprehensive auto insurance policy will pay out, cars that are worth less are cheaper to insure.
Learn more about how much comprehensive insurance costs.
What Is a Comprehensive Deductible?
A comprehensive insurance deductible is the amount of money you will pay out of pocket for car repairs before your insurance company will pay for the rest. Comprehensive deductibles typically range from $100 to $1,000, and the higher the deductible is, the lower the premiums will usually be.
Learn more about comprehensive insurance deductibles.
Best Comprehensive Car Insurance Companies
Learn more about the best comprehensive car insurance companies.
What Is the Difference Between Comprehensive and Collision Insurance?
Comprehensive insurance is often confused with collision insurance since they are generally purchased together and both pay to repair or replace the policyholder’s car. The main difference is that comprehensive auto insurance applies to damage caused by something other than a crash, while collision coverage applies to damage from an accident.
Comprehensive vs. Collision Coverage
|Cause of Damage||Covered by Comprehensive Insurance?||Covered by Collision Insurance?|
|Vandalism or riots||Yes||No|
|Natural disaster, fire, or extreme weather||Yes||No|
|Animals, including hitting a deer||Yes||No|
|Accident involving another car||No||Yes|
|Single-car accident, such as rolling or hitting a pole||No||Yes|
Learn more about the differences between comprehensive and collision insurance.
Is Comprehensive Insurance Worth It?
You probably need comprehensive insurance if:
- You have a loan or lease
- You cannot afford to repair or replace your car out of pocket
- You live in an area where natural disasters like floods, wildfires, or hurricanes are common
- You often drive on busy highways where gravel and debris could damage your windshield
- You live in a rural area where there are often deer strikes or other wildlife-related accidents
- You live in a high-crime area where theft, break-ins, and vandalism are common
- You can comfortably afford the increase to your premiums
Learn more about when comprehensive insurance is worth it.