Key things to know about comprehensive coverage
Comprehensive coverage helps protect your vehicle from unexpected events that don’t involve a direct collision with another vehicle.
- Helps pay for damage from events like theft, fire, vandalism, falling objects, and natural disasters.
- This coverage may be required if you are leasing or financing a vehicle.
- Your deductible — the amount you pay before insurance kicks in — can affect the cost of your premium.
What is comprehensive coverage?
Comprehensive coverage helps cover the cost of unexpected damage to your car that isn’t caused by a crash. This can include things like extreme weather events, theft, fire, vandalism, or an object falling on your car.
If you’re leasing or financing your car, the lender may require this coverage. Keep in mind that for full protection, comprehensive coverage works best when combined with other types of auto insurance, including liability or collision.
How does comprehensive coverage work?
Think of it this way: It’s a stormy night. The wind is howling and you can hear the hail falling on your roof. The next morning, you find that your car is covered in hail dents. What happens next?
If your vehicle is damaged in a covered incident, you’ll file a claim under your comprehensive coverage. You’ll first pay your deductible, then your insurance steps in to help cover the rest up to the car’s value.
How do I choose a deductible for comprehensive coverage?
Your deductible is the amount you agree to pay out-of-pocket before your insurance kicks in on a claim. For example, if your repair cost is $5,000 and you have a $500 deductible, you’ll only pay $500. Your insurance will cover the remaining $4,500.
You choose your deductible when you add comprehensive coverage to your policy. Here’s a few things to keep in mind:
- A higher deductible will give you a lower premium, but you may have more out-of-pocket costs if you file a claim.
- A lower deductible means a higher premium, but less to pay out-of-pocket if you file a claim.
- Consider your budget, your car’s value, and how much risk you’re comfortable with.
Learn more about how deductibles work.
What is a comprehensive coverage limit
A comprehensive coverage limit is the maximum amount your insurance will pay if your car is damaged by something other than a collision. The limit is typically based on the cash value of your vehicle—meaning your car’s current market value, not what you paid for it. If the damage costs more than that amount, you’d be responsible for the difference.
How is comprehensive different from collision?
Comprehensive coverage helps pay for damage caused by non-collision events, like theft, falling objects, fire, natural disasters or animal damage. Collision coverage helps pay for your damage when your car hits another object, like a car or a tree.
Do I need comprehensive insurance?
This coverage may be required for leased or financed cars, but it is typically not required by state. When determining if you need comprehensive insurance, it’s important to consider whether you can afford repairs or replacement on your own if you find yourself in an unexpected incident.
What auto coverage is required in your state?
Car insurance is required in nearly every U.S. state, but coverage types and limits can vary. Be sure to check your state’s requirements to understand what coverage you need.
requirements by stateHow much does comprehensive car insurance cost?
The amount you pay for comprehensive collision insurance is largely based on the deductible you choose. A higher deductible keeps your premium lower. Consider, however, whether you’re able to afford to pay a higher deductible should you have to file a claim.