What Does Comprehensive Auto Insurance Cover

Comprehensive insurance offers coverage for damage to your vehicle resulting from incidents other than a collision. For instance, with comprehensive coverage, you're protected against fire, theft, vandalism, wind, hail, and falling objects.

If you're in the market for auto insurance or if your current policy is up for renewal, it's worth considering comprehensive coverage if you haven't added it already.

What Doesn't Comprehensive Insurance Cover?

Comprehensive insurance does not cover any damage to your vehicle that results from a collision. It also doesn’t cover damages to another driver's car caused by a collision. Additionally, medical expenses for you or your passengers resulting from an accident aren't covered under comprehensive insurance.

This type of coverage also doesn’t protect personal items left in your car. For example, if your car is stolen, any belongings inside it wouldn't be covered. However, they might be covered under your homeowners or renters insurance policy.

How is Comprehensive Different from Collision?

Comprehensive coverage is often added to an auto insurance policy alongside collision coverage. Collision insurance covers damage to your car in the event you collide with another vehicle or a stationary object. For instance, if a boulder rolls into your car while you're driving, comprehensive insurance covers it. However, if you hit a boulder lying in the road, collision coverage applies.

Read More: Comprehensive vs. Collision: What's the Difference?

Do You Need Comprehensive Auto Insurance?

If you have an auto loan or lease, your lender typically requires comprehensive coverage on your insurance policy to protect their financial interest in the vehicle. The lender will also need to be listed on your policy, receiving notifications if it lapses.

If you own your vehicle outright, you can decide whether or not to include comprehensive coverage. It might not be cost-effective to maintain it on an older vehicle. You should weigh the car's value against the cost of comprehensive coverage. For example, paying $400 annually for comprehensive insurance may not be worthwhile if you'd only receive $1,500 if your car is stolen.

Choosing a Comprehensive Deductible

If you opt for comprehensive insurance, you'll need to select a deductible, which is the amount you pay out-of-pocket for a comprehensive claim. Insurance companies typically offer deductible options of $100, $250, $500, and $1,000.

For instance, if you have a $250 comprehensive deductible and repairs for vandalism cost $1,000, the insurance company would cover the remaining $750.

Generally, the higher your deductible, the less you'll pay for comprehensive coverage. This is because the insurance company pays out less if you file a claim. Conversely, you’ll have to cover more expenses yourself with a higher deductible.

If you have a car loan, the lender may allow a comprehensive deductible of up to $1,000, though some may only permit up to $500. For leased vehicles, the deductible is usually capped at $500.

How Much Does Comprehensive Insurance Cost?

The cost of adding comprehensive coverage to your auto insurance policy varies based on several factors. The deductible you choose influences the cost, as do the age and type of your vehicle. Vehicles that are more costly to repair or replace will have higher comprehensive premiums.

Your location also affects the premium for this coverage. Other factors include your gender, age, driving history, and credit score.

Comprehending Comprehensive

Comprehensive auto insurance provides valuable coverage for unforeseen incidents, ensuring that you aren't faced with unaffordable repair costs. It offers peace of mind, knowing that if something happens to your vehicle, you'll only need to cover the deductible rather than the entire repair or replacement cost.