Written by JULIA KAGAN, last revised on June 28, 2021, and reviewed by MARGUERITA CHENG. What Is Comprehensive Insurance?
A type of auto insurance called comprehensive insurance covers damage to your vehicle that doesn’t result from a collision.
If your car is damaged by a tornado, dented by a run-in with a deer, spray-painted by a vandal, broken into, or crushed by a falling garage, among other things, comprehensive insurance will pay for it.
The most important points to remember are that comprehensive insurance covers damage to your vehicle that does not result from a collision.
You may be required to purchase comprehensive and collision insurance if you finance the purchase of a vehicle.
If you drive an older vehicle that has already lost a significant amount of value, purchasing comprehensive coverage may not be financially advantageous.
Car damage caused by animals, falling trees, natural disasters, theft, and vandalism are covered by comprehensive insurance. Damage to other vehicles or individuals is not covered.
For comprehensive insurance, raising your deductibles could help lower your premiums.
Understanding Comprehensive Insurance An automobile insurance policy consists of three parts:
comprehensive insurance, collision insurance, and liability insurance. In most states, drivers are required to have liability insurance, but if a person owns a car outright, they can choose not to have collision or comprehensive insurance.
1 The auto loan company may require comprehensive insurance if the vehicle was financed.
Damages related to the following are included on the list of things that comprehensive insurance covers:
Accidents involving animals, like hitting a deer, natural disasters like earthquakes, floods, and hurricanes, as well as fires, riots, and vandalism. Vehicle theft, or the theft of particular parts of the vehicle. Broken windshields. Fallen objects, like branches, rocks, or hail. 2 Comprehensive Insurance vs. Collision Insurance If you’re buying a new car, whether you finance it or pay cash for it, comprehensive insurance can be a good idea. Regardless of any accident-related coverage you may have, comprehensive coverage can shield you from minor and major damages brought on by events beyond your control.
When deciding when to get full coverage, where you live can also be a factor. Comprehensive insurance might be a good idea for someone who lives in a stormy area that frequently experiences hail or in a rural area where animal collisions are common. If a person lives in a neighborhood with a higher rate of crime, where break-ins and thefts are frequent, the same holds true.
In the event of a single-car rollover, a collision with another vehicle, or a collision with an object, collision insurance will cover you. It does not cover damage caused by weather or break-ins or thefts. Collision insurance must be purchased if you lease a vehicle. When you’re in an accident, collision insurance can help cover the cost of fixing your car because it covers damage caused by potholes in the road.
If you get into an accident, neither your insurance nor the damage to another person’s vehicle will cover your medical expenses.
3 When you buy comprehensive coverage or any other kind of car insurance, you should make sure to compare the best companies to find the best prices.
