Comprehensive coverage
What is comprehensive coverage?
Comprehensive coverage is a type of automobile insurance that helps pay to repair or replace your vehicle if it’s damaged by something other than a collision. That includes things like theft, vandalism, fire, hail, falling objects or hitting an animal.
This coverage is designed to protect against events you can’t control especially when your car is parked.
How does comprehensive insurance work?
If your car is damaged by a covered event, you can file a comprehensive claim with your insurance company. If the claim is approved, the insurance company pays to repair or replace your vehicle minus your deductible. Comprehensive coverage pays for covered losses regardless of who is at fault.
The payout for damages under comprehensive insurance is based on the actual cash value of the vehicle, which is its current market value.
You choose your comprehensive coverage when you buy your policy. The higher your deductible, the lower your monthly premium, but the more you’ll pay out of pocket when filing a claim.
What does comprehensive insurance cover?
Comprehensive coverage usually includes damage caused by:
- Theft
- Vandalism
- Fire or explosion
- Hail, wind or storm damage
- Falling objects like tree branches or debris
- Natural disasters like floods or earthquakes, depending on your location
- Broken or shattered windows
- Hitting an animal like a deer
It covers non-collision events, not crashes with other cars or objects.
Your policy will outline exactly what’s covered and what’s not.
What’s not covered by comprehensive coverage?
Comprehensive coverage does not pay for:
- Damage caused by a collision that’s covered by collision insurance
- Medical bills or injuries handled by medical payments or personal injury protection
- Damage to another person’s vehicle or property covered by liability insurance
- Mechanical breakdowns or regular maintenance
- Items stolen from your vehicle these may be covered by homeowners or renters insurance
Comprehensive vs. collision coverage
Comprehensive insurance covers things you don’t hit like weather, fire or theft. Collision insurance covers damage from things you do hit like another car or a collision with an object, such as a wall or a tree. Collision covers accidents you cause by hitting something. Comprehensive protects you from damage caused by things you can’t control, like weather or theft.
Most policies include both comprehensive and collision coverage, especially for newer or financed vehicles.
What is a comprehensive deductible?
Your deductible is the amount you agree to pay before your insurance kicks in. If your deductible is $500 and repairs cost $2,000, your insurance company will pay $1,500, and you’ll pay the $500. Both comprehensive and collision coverages have deductibles that the driver is responsible for paying before insurance kicks in.
A lower deductible usually means a higher premium, but you’ll pay less out of pocket if you have a claim.
Deductibles typically range from $250 to $1,000 or more. You choose this amount when you buy or update your policy.
How to choose a comprehensive deductible
When choosing your deductible, think about:
- How much you could afford to pay out of your own pocket if you had a claim
- The age and value of your car
- How often you drive or where you park (garages vs. street)
- Your comfort level with risk vs. monthly premium savings
A higher deductible usually means a lower premium, but you’ll pay more if something happens.
How the comprehensive claims process works
- Something happens like your car is vandalized or damaged in a storm.
- You file a claim with your insurance company.
- The damage is inspected (usually with photos or in-person review).
- You pay your deductible and your insurance company covers the rest (up to your policy limit).
- You get your car repaired or replaced.
Your insurance advisor can walk you through this step-by-step. Real-world examples of comprehensive claims
- A tree falls on your parked car during a windstorm
- Your windshield is cracked by a rock on the highway
- Someone breaks into your vehicle and smashes a window
- Your car is stolen from a parking lot
- A deer runs into your car while you’re driving
These are all examples of when comprehensive coverage can help. Just make sure your deductible fits your budget if you ever need to file a claim.
What types of comprehensive coverage are available?
Comprehensive coverage is generally standardized across insurance companies, but some may offer:
- Glass-only coverage (for windshields or windows)
- Zero-deductible options for specific risks
- Optional riders or endorsements depending on your region (like flood coverage)
Comprehensive coverage is one of the optional coverages available. A VIU by HUB Advisor can help you review your coverage options and advise what’s right for you.
Advantages and disadvantages of comprehensive insurance
Advantages:
- Protects against non-collision risks you can’t control
- Often required by lenders for financed or leased vehicles
- It can help you avoid major out-of-pocket repair costs
Disadvantages:
- Increases your overall premium
- It may not be cost-effective for older, low-value vehicles
- Deductible still applies to most claims
Is comprehensive insurance required?
Comprehensive insurance is not legally required by most states. However, your lender or leasing company may require it if you’re financing or leasing a vehicle. If you own your vehicle outright, comprehensive insurance is optional.
If you lease or finance your car, your lender may require comprehensive coverage and it can offer valuable protection, as it provides valuable protection against theft, vandalism, and natural disasters.
Your insurance advisor can help you calculate whether it’s still worth it.
Is comprehensive insurance worth it?
That depends on:
- The value of your car
- Your risk of theft or weather damage
- Your financial situation
- Whether you lease or finance your vehicle
If your car is newer or valuable, comprehensive is usually worth it. For older vehicles, it might make sense to drop it.
If you’re not sure whether comprehensive coverage is right for you, ask your insurance advisor
How much does comprehensive auto insurance cost?
Costs vary depending on:
- Your car’s value
- Your deductible
- Your premiums
- Your location and risk factors (like theft or weather risk)
- Your driving record
- Whether it’s bundled with other coverages (like collision or liability)
The average cost of comprehensive coverage is around $134 per year, but your rate may vary. Is comprehensive insurance the same as full coverage?
Not exactly.
“Full coverage” usually means a combination of:
- Liability
- Collision
- Comprehensive
- Other options like roadside assistance
Comprehensive is just one part of that. It’s not the same as a full coverage policy on its own.
Sources:
https://www.nerdwallet.com/article/insurance/car-insurance-deductible
https://www.investopedia.com/terms/c/comprehensive-insurance.asp