What is Comprehensive Car Insurance and What Does it Cover?
Key Takeaways
Comprehensive Covers What Collision Does Not
Comprehensive car insurance pays for damage to your vehicle from incidents that are not collisions with another vehicle or object. That includes theft, vandalism, fire, flooding, hail, glass breakage, and hitting an animal like a deer. It can be used regardless of who is at fault, and the maximum payout is based on your vehicle's actual cash value minus your deductible.
It Is Optional by Law but Often Required by Your Lender
No state requires comprehensive coverage, but if you lease or finance your vehicle, your lender will almost certainly require it. Even without a lender requirement, it is worth carrying if your car has a higher cash value or if you could not afford to repair or replace it out of pocket after a covered loss.
Comprehensive and Collision Serve Different Purposes
Hitting a deer is comprehensive. Swerving to miss a dog and hitting a fence is collision. Both coverages have their own deductibles and both pay up to actual cash value, but they apply in different scenarios. Normal wear-and-tear items like brakes, tires, belts, and windshield wipers are not covered by either.
What is comprehensive car insurance coverage?
Comprehensive coverage helps cover the cost of damages to your vehicle when you're involved in an incident that's not caused by a collision with another vehicle. Comprehensive car insurance can cover losses like theft, vandalism, hail, flooding, or hitting an animal. For example, if you are driving and hit a deer, the damage could be covered under comprehensive coverage. However, if your vehicle were to hit another vehicle or object, this would fall under collision coverage.
Comprehensive car insurance is an optional coverage you can carry to help protect your vehicle. Unlike some coverages, you don't select a limit for comprehensive vehicle insurance. The maximum payout is based on the actual cash value of your vehicle. You will be responsible for paying your selected car insurance deductible.
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What does comprehensive car insurance cover?
Comprehensive coverage covers damages to your vehicle in certain situations. It's sometimes referred to as "other than collision" coverage. All that means is that it may cover damages to your vehicle that collision coverage doesn't. This may include, but is not limited to, things like:
- Theft
- Glass breakage not resulting from a collision
- Fire
- Floods and hail
- Hitting an animal
What damage is not covered by comprehensive coverage?
Comprehensive coverage does not cover damages caused by hitting another vehicle or object. These incidents are covered under collision coverage. Normal wear and tear on your vehicle is also not covered by comprehensive car insurance. Normal wear and tear includes items that normally need to be replaced over time from usage such as:
- Belts and hoses
- Brakes
- Tires
- Windshield wipers
Comprehensive Coverage vs. Collision Coverage
Comprehensive coverage and collision coverage can be used to help repair the damages caused to your vehicle in an accident. Both coverages have a deductible you are responsible for paying before the coverage starts covering the damage. The coverages differ in the situations in which they apply.
Comprehensive coverage applies when:
- Your car hits a deer
- Someone steals your vehicle
- Your car is damaged in a hailstorm
Collision coverage applies when:
- You swerve to miss a dog and hit a fence
- Another vehicle hits your vehicle
- You have a single car accident with damage to the vehicle
Why should you buy comprehensive coverage?
Comprehensive coverage:
- Can be used no matter who's at fault
- Helps pay for repairs, over your deductible, so you're not stuck paying the entire bill on your own
- Not required by law in any state, but is usually required by lenders if you are leasing or financing your vehicle
- Worthwhile if your vehicle has a higher cash value or if you cannot afford to repair or replace it out of pocket
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What is a comprehensive deductible?
A comprehensive deductible is the amount you've agreed to pay before the insurance company starts paying for damages. You can think of it as how much of the financial risk you're willing to take on if you're in an accident. Typically, the more risk you're willing to take (higher deductible), the lower your insurance cost would be. The less risk (lower deductible), the higher your insurance costs would be.
Let's say there's a bad hailstorm in your area and your vehicle has $1,000 in damage. You have a $100 deductible on your comprehensive coverage. You'll pay the first $100, and then your insurance company will pay the remaining $900 of the vehicle repair bill. If you have an older vehicle, you may want to consider whether you need comprehensive coverage as it is normally limited to the actual cash value of your car.