Comprehensive Car Insurance Guide

No, comprehensive insurance is not full coverage, but it is often referred to as full coverage insurance when purchased together with collision insurance and any state-mandated types of coverage. Comprehensive insurance covers non-accident-related vehicle damage caused by things like vandalism or a natural disaster.

Comprehensive Insurance vs. Full Coverage

Full coverage is a catch-all term for a few different types of car insurance policies and is a phrase more commonly used by consumers than car insurance companies. Some define full coverage as a policy that protects the policyholder from anything and everything in the event of an accident, while others say it is any policy with anything beyond the minimum coverage required by law.

To learn more, check out WalletHub's guides to comprehensive insurance and full coverage insurance.

It is better to have comprehensive insurance than collision insurance, if you need to choose between the two. Comprehensive coverage is inexpensive, can be purchased alone, and pays for damage due to events beyond your control, such as vandalism, theft, natural disasters or run-ins with animals.

On the other hand, drivers with a history of accidents or moving violations and drivers who live in high traffic areas should consider investing in collision insurance. Given that collision insurance cannot be purchased without comprehensive in​​surance, you'll get the benefit of both types of coverage.

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 do have a choice, you should still consider purchasing both types of coverage.

Collision and comprehensive insurance are best bought together because they cover different situations. Collision coverage repairs or replaces your car when it's damaged in an accident, regardless of fault, while comprehensive insurance applies when your car is damaged by something other than an accident.

Ultimately, if you're still struggling to decide whether to purchase comprehensive or collision coverage, a good rule of thumb is to skip either type if the cost is more than 10% of your car's value. However, this is just a general guideline, and you should also consider whether you're in the financial position to repair or replace your car if it's damaged. 

To learn more, check out WalletHub's guide to collision and comprehensive insurance.

An example of what comprehensive insurance covers is your car getting stolen, vandalized with graffiti, or damaged by a falling tree branch. Comprehensive insurance covers damage to your vehicle caused by events other than collisions. Comprehensive insurance is sometimes said to cover “acts of god” because it covers things that are out of your control and cannot be prevented or predicted.

Examples of What Comprehensive Insurance Covers

• Theft
• Vandalism (like a broken window or slashed tires)
• Floods
• Fires (not related to a collision)
• Natural disasters (like storms, hail, wind, floods, lightning, and earthquakes)
• Falling objects (like a tree)
• Animal damage (like hitting a deer)
• Glass damage (not related to a collision)

Comprehensive car insurance does not cover things like collisions with other vehicles or with inanimate objects on the road, like hitting a pothole. Keep in mind that comprehensive insurance will only cover damage up to your policy limits, minus your deductible.

Example of How Comprehensive Insurance Works

Let's say a tree branch falls on your car and damages the roof and windshield. Since this is non-accident-related damage, you can contact your insurance company and request to file a comprehensive insurance claim. You can file a claim online or by calling and speaking with an agent. You will likely need to provide details about the incident as well as evidence of the damage. Additionally, before your insurance coverage kicks in, you will be required to pay your deductible.

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

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 other animal
• Glass damage

Comprehensive insurance is sometimes said to cover “acts of god” because it applies to things outside of a policyholder's control that can't really be predicted or prevented.

What Comprehensive Insurance Doesn't Cover

• Collision with another vehicle
• Hitting a stationary object (such as a house or fence)
• Damage caused by the road surface (like potholes)
• Roadside assistance (including jump starts and towing)
• Rental car expenses after an accident
• Medical expenses

Key Things to Know About Comprehensive Insurance Coverage

Coverage Limits Are Based on Your Vehicle's Value

The coverage limits for comprehensive insurance are determined by the vehicle's actual cash value, so the more a car is worth, the more the insurer will pay in a claim.

Comprehensive Insurance Includes Deductibles

Deductibles typically range from $100 to $1,000 and must be paid before your insurer will cover the rest of the claim.

Comprehensive Is Usually Paired with Collision Insurance

Comprehensive insurance is often purchased in conjunction with collision insurance so the policyholder is protected from both accident-related and non-accident-related damage.  

Comprehensive Insurance Is Not Required By Law

While no states require drivers to have comprehensive insurance, you may be required to purchase it if you have a loan or lease on your vehicle.

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

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 that case, comprehensive insurance is definitely worth it, because failing to meet the lender's or lessor's requirements could result in expensive force-placed insurance or even repossession.

Factors to Consider When Deciding If Comprehensive Insurance Is Worth It

• Your car's age, mileage, and value.
• The cost of comprehensive insurance premiums.
• The risk of theft, vandalism, and natural disasters in your area.
• Your ability to pay for repairs or a replacement vehicle out of pocket.

An old rule of thumb recommended dropping comprehensive coverage when a car was five to six years old or had 100,000 miles. But this rule is now outdated, since newer cars have increased longevity alongside higher repair costs. Now, the standard rule is that comprehensive and collision coverage are both worth buying if the combined premium is less than 10% of the car's value, minus the deductible.

Cost is only one factor, however, so you should also consider how likely you are to file a claim, as well as what would happen to you financially if your car was stolen or destroyed by something other than an accident and you didn't have coverage. For instance, if theft, animal collisions, or natural disasters are particularly common in your area, you are especially likely to need comprehensive insurance. Similarly, even if your comprehensive premium is 15% of your car's value, for example, comprehensive insurance might still be worth it if you rely on the car and can't afford to replace it yourself.

A good comprehensive deductible is an amount that the policyholder can afford to pay if their vehicle is suddenly damaged by something other than a car accident, such as vandalism or a natural disaster. Comprehensive insurance deductibles typically range from $100 to $1,000, but they can sometimes be as high as $2,500. You choose your deductible when you purchase your policy, and the higher the deductible is, the lower your premium will be.

Comprehensive Deductible Example

As a reminder, a comprehensive deductible is the amount that you have to pay out-of-pocket when filing a comprehensive insurance claim. For example, if a hailstorm causes $5,000 in damage to your car and you have a $1,000 deductible, your insurance company will only pay $4,000 for the repairs.

How to Choose Your Comprehensive Deductible

Before you decide on a deductible, you should consider how likely you are to file a comprehensive claim. If you live in an area that is prone to natural disasters or has a high crime rate, for instance, it may be a good idea to get a low comprehensive deductible.

The difference between full coverage and comprehensive insurance is that full coverage is a car insurance policy that includes both comprehensive and collision insurance along with the state's minimum requirements. Comprehensive insurance covers damage to a car from things other than accidents, like theft or fire.

Comprehensive insurance mostly covers events outside of a driver's control, or incidents that happen when a car is parked. For instance, comprehensive covers vehicle damage or replacement due to natural disasters, extreme weather events, and vandalism. When combined with collision insurance, these two types of insurance cover most incidents that could damage your car, hence the designation “full coverage.” Comprehensive and collision coverage are not mandatory in any state, but some lenders and lessors will require them on a leased or financed car.

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.  

Finally, 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.

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 damage to the policyholder's car from things other than an accident, such as theft, vandalism, or natural disasters. It is often bundled with collision insurance, which covers damage to the policyholder's car due to a crash. But you can usually buy comprehensive coverage independently, too. Although no state laws require comprehensive insurance, it is usually required for leased or financed cars.

Yes, comprehensive insurance covers theft. Comprehensive auto insurance coverage will pay to replace a stolen car, repair damage done by thieves, or replace stolen parts, though it will not cover personal possessions stolen from inside a vehicle. It usually won't pay to repair or replace custom parts or other equipment added by the driver, either.

Comprehensive coverage, which pays for non-accident damage resulting from things like natural disasters and theft/vandalism, is limited to the actual cash value (ACV) of a vehicle, minus the policyholder's deductible. Comprehensive deductibles often range from $500 to $1,500.

To receive a comprehensive insurance payout for theft, drivers should immediately file a police report and then include a copy when they file a claim with their insurance company.

You don't need to carry comprehensive insurance on an old car, unless you have a financing contract that requires it. Comprehensive coverage becomes less valuable as your car depreciates, so you could drop it. A good way to find out if comprehensive coverage is worth it is to compare the value of your car with the cost of insurance and your deductible.