Comprehensive car insurance is an extensive auto insurance plan that offers you coverage against any damages except collision.

Even if you are an excellent driver with no history of traffic violations, getting a comprehensive cover is in your best interests as it covers specific problems including those that occur while your car is not in use.

This type of car insurance is ideal if you need to pay for damages caused by natural disasters, vandalism, fire, hitting an animal, and theft among other non-collision damages. Keep in mind that although comprehensive insurance is optional, it is best to add it to any other policies you might have.

Understanding Comprehensive Car Insurance

In most states, you must carry liability insurance at the minimum. However, comprehensive insurance and collision cover are usually optional if you own your vehicle. Drivers who are leasing or financing their cars are required by the lender to have comprehensive coverage.

What Does Comprehensive Car Insurance Cover?

A comprehensive cover will usually cover:

• Car theft
• Theft of certain parts of your vehicle
• Contact with animals, e.g., hitting a deer
• Broken windshield
• Glass damage
• Civil disturbances
• Vandalism
• Fire and explosions
• Floods
• Extreme weather conditions such as hurricanes and hail
• Falling objects such as branches, hail, rocks
• Rodent damage

If you have a comprehensive cover and suffer any of the above damages, the insurance company will pay for repairs or compensate you for the value of the car in case it is completely written off. Payments for total loss are usually minus the deductible.

A car insurance deductible is the money deducted when you file your claim under a comprehensive car insurance policy. For instance, if your car is damaged for any of the above reasons, the insurance company will subtract your deductible from your claim check.

In some states, there is a specified deductible amount, while in others, you have the freedom to choose the deductible amount. The deductible amount is paid every time you make a claim.

What Is Not Covered by Comprehensive Car Insurance?

Some damages that are not covered under a comprehensive policy include:

Depreciation

• Wear and tear
• Damage as a result of drunk driving
• Damage as a result of driving under the influence of drugs
• Damage caused by a driver without a license
• Electrical damage
• Mechanical damage
• War, nuclear risk, or mutiny
• Damaged tires and tubes, unless the vehicle is also damaged at the same time, in which case the insurance is liable for only 50% of the replacement cost

Benefits of Having Comprehensive Car Insurance

A recent study showed that drivers hit over two million animals in a year. A comprehensive policy protects you from unexpected events such as these except for collisions.

It also covers any losses you might incur from an incident that is beyond your control and helps you save money on repairs.

Other benefits of buying a comprehensive cover include:

• You get the highest level of protection for your vehicle
• You can claim for losses incurred during an accident even if you are at fault
• A comprehensive cover also covers lawsuits and legal fees in case you are sued after an accident
• You enjoy complete financial protection
• Peace of mind
• In case your car is written off, you get financial aid from your insurer
• Damage to your car is covered in case of an accident
• If you live in a high-risk area, comprehensive coverage offers you protection against break-ins and theft

Disadvantages of Comprehensive Car Insurance

Although comprehensive car insurance is quite extensive, it is limited in some cases such as:

• Damage caused by a collision
• It may not be beneficial if you have an older car
• It does not cover damage caused by potholes
• It does not cover stolen personal items in case of a break-in
• Does not cover medical expenses for you, your passengers, or another driver in case of a collision
• Damage to another car

How Does Comprehensive Car Insurance Compare to Collision Insurance?

When buying a new car, it makes sense to purchase comprehensive coverage. Whether the car is financed or paid off, having comprehensive insurance protects you against unforeseen events including theft.

Collision insurance, on the other hand, typically covers any damages that occur in case of a crash. This includes single-vehicle collisions where you drive into a stationary object and collision with another car.

A collision cover is especially useful in case of an accident as it covers damages that are not covered by a comprehensive policy.

These two types of insurance are optional and are sometimes sold together as a package by most insurance companies. Both collision and comprehensive insurance have deductibles, however, neither of them covers medical bills as a result of an accident.

Purchasing both comprehensive and collision coverage is usually more expensive than third-party coverage. We recommend shopping and comparing policies from the best car insurance companies around your area to get the most affordable rates.

How Much Does Comprehensive Car Insurance Cost?

As the name suggests, comprehensive car insurance offers you the most comprehensive protection against unforeseen damages. However, it is also riskier for insurance companies which means you might have to pay more in premiums to cover this risk.

Average costs depend on the state you live in as well as other factors such as crime rates. If you live in an area with high crime rates, your car is more likely to get broken into or stolen so insurance companies adjust their premiums to cover the additional risk.

Comprehensive insurance also has deductibles so depending on which deductibles you choose; your premiums will also be adjusted accordingly. On average drivers pay $263 a year for comprehensive insurance and $723 annually for collision coverage.

Remember, at a certain point, your premiums and deductibles will become equal to or even greater than the market value of your car. At this point, it makes little sense to continue paying for comprehensive insurance and it is probably best to drop the policy.

Should You Buy Comprehensive Car Insurance?

While a comprehensive cover is not mandatory in any state, it is still wise to purchase this policy as it offers you protection against unforeseen damages. However, if your car is leased or financed, your lender will require a comprehensive policy to protect their asset.

If you have paid off your vehicle in full, or you cannot afford comprehensive coverage, you can skip the comprehensive coverage and opt for a cheaper policy. There are, however, ways to reduce your premiums should you choose to buy a comprehensive cover such as:

• Bundling your auto insurance with home insurance
• Buying a car that is cheaper to insure
• Driving less
• Improving your driving record
• Paying your annual premiums in full, and more

Summary

While comprehensive car insurance is not mandatory in all states, it can be a very valuable coverage to have.

It can help protect you financially in the event of an accident or theft and may even save you money on your auto insurance premiums.

Before deciding whether or not to buy comprehensive car insurance, be sure to weigh the pros and cons and compare rates from several different insurers.