Many states require that vehicle owners have minimum car insurance. But, just because your state has laws that require you to have coverage does not mean that you have enough insurance.
Most states require that you have liability insurance in order to cover the damage you cause to others as a result of an accident. You need minimum coverage to cover damage to your car and other costs not related to an accident. Comprehensive insurance can solve the problem by providing protection for your vehicle.
The key takeaways
- Full insurance coverage is a policy that covers liability, comprehensive, and collision insurance.
- You may not be required to have comprehensive insurance by your state, but your lender might.
- Comprehensive coverage covers your vehicle against a variety of perils, including theft, weather, and falling objects.
- Although many people think that collision insurance would cover the injury to an animal, it is actually part of comprehensive coverage.
What is comprehensive insurance?
Comprehensive insurance, sometimes called “comprehensive coverage”, does not cover every auto accident. It covers almost everything that can cause damage to your vehicle.
Comprehensive coverage covers your vehicle in the event of a covered peril or event. Each insurance company covers different types of perils so make sure you read all the fine print. Comprehensive auto insurance can be viewed as a type supplemental insurance, which fills in the gaps left by collision and liability.
When shopping for car insurance, most people do not think about their car being damaged by anything except another car. Many claims arise from vehicle damage that was not your fault.
What is comprehensive insurance?
Understanding what comprehensive coverage doesn’t cover is the first step. Comprehensive insurance doesn’t cover car collisions with other cars or rollovers. You will need to have collision and liability coverage.
Comprehensive coverage will cover just about any other damage that could happen to your vehicle. These are the types of damages that most comprehensive policies cover:
- Falling objects — A piece of equipment falls from another vehicle and hits your vehicle.
- Fire — A wildfire can spread through your neighborhood and cause damage to your car.
- Flood — Water levels rise above your car’s clearance due to rain, which can cause the interior of your car to get soggy.
- Hail! Hail can leave many dents on your roof and hood, as well as small cracks in your windshield.
- Hitting an animal — A deer was hit in the middle night. This can cause severe damage to your car’s front bumper and hood.
- Theft — A thief smashes the passenger side glass to steal your car’s radio.
- Vandalism — Someone will slash your tires to make it more fun at night.
- Wind — A severe wind blows down a tree, which then causes your car to be totaled.
Comprehensive protection is the protection against multiple things that could damage or even destroy your vehicle. Comprehensive is a crucial part of auto insurance, according to many insurance professionals.
How much does comprehensive coverage cost?
The total cost of comprehensive insurance will vary from one person to the next. Keep in mind auto insurance premiums (regardless of what type you get) are affected by the following:
- Age of driver
- Driver’s gender (in most states)
- Marital status
- Driving experience (in years).
- Driving history
- History of Claims
- Insurance discounts
- Type of car
- Age of the car
- Car ownership
- Annual mileage
- Credit score (in most States)
- Localization
- History of insurance
Keeping this in mind, in the Insurance Information Institute’s latest report in 2018, the U.S. average for comprehensive coverage was just under $168 per year. Depending on these variables, what you pay might be higher or lower.
Many insurance companies offer several payment options. You have the option to pay your premium monthly, quarterly, or all at once. You may be eligible for a discount from many insurance companies if you pay your premium all at once.
Do I need comprehensive insurance?
It depends. Each state has a minimum amount of coverage you will need to carry, but comprehensive coverage is not one of them. Your state may not require you to have this coverage but your finance company will insist that you have it. Your finance company is technically the owner of your vehicle, and it will want to protect it from any damage.
Before you drop comprehensive, even if your vehicle has not been financed, be sure to ask the following questions:
- Are there many wildlife in your region?
- Are forest fires common in your area?
- How high is your area’s crime rate?
- Are you prone to hailstorms in your area?
- Do you live in a flood zone according to FEMA?
Insurance experts suggest that you purchase comprehensive coverage if additional financial protection is feasible within your budget.
Commonly asked questions
What is the difference between collision and comprehensive coverage?
Comprehensive covers vehicle damage from hail, vandalism and theft.
Collision coverage is in a sense the opposite of comprehensive coverage. Collision coverage covers your vehicle if it is hit by another vehicle or object.
Is it OK to cancel comprehensive coverage?
You can cancel comprehensive coverage if you don’t have a lienholder. It is not required by law, but it may be beneficial.
