Comprehensive car insurance typically covers what collision or liability car insurance doesn’t: damage from an incident that’s not a collision. Comprehensive car insurance will cover the costs if your windshield is broken or a tree falls on your car.
Below, you’ll find the answer to the question, what is comprehensive car insurance? You’ll also find key considerations to decide if you need comprehensive insurance and how much you should get.
Comprehensive car insurance is sometimes called non-collision or “other than collision” coverage because it covers issues like fire, vandalism, or other damage that occurs when the vehicle isn’t in a collision, like damage from flooding, hailstorms, or fallen trees.
The notable exception to the no-collision part of comprehensive car insurance? If you have a run-in with wildlife, it’s usually covered under this type of insurance.
Car owners are generally not required to have comprehensive car insurance if they purchase the vehicle with cash. However, if you finance the vehicle with an auto loan or lease the vehicle, especially if you lease a car with bad credit, you will usually be required to have comprehensive car insurance.
On the other hand, purchasing comprehensive car insurance may not make sense if you drive an older vehicle that has already lost significant value.
Comprehensive vs. full coverage car insurance
Full coverage car insurance is the solution if you want all-in-one vehicle insurance. Full coverage car insurance usually combines liability insurance, collision coverage, and comprehensive coverage. This option is best for newer vehicles or those who want the convenience of knowing their vehicle is protected in case of any issue.
In most cases, if you want comprehensive insurance, full coverage car insurance is what you’re actually looking for. However, in some cases, it could make more financial sense to purchase these plans separately.
Comprehensive vs. liability car insurance
Liability car insurance protects you from liability in case you are involved in a car accident or accidentally harm another driver or vehicle. This financial protection means you can cover the repair, bodily injury, and medical expenses of those involved in the accident. Liability coverage insurance requirements are regulated at the state level in the U.S., but this coverage is mandatory in almost every state.
While comprehensive car insurance protects you from expenses related to damage to your vehicle, liability car insurance protects you from financial responsibility in case you accidentally cause harm to others.
Comprehensive vs. collision car coverage
Collision insurance covers expenses related to collisions, including a collision with an object, another vehicle, or a single-car rollover. It will not cover weather-related damage, natural disasters, or vandalism. That’s where comprehensive car insurance comes in.
However, neither comprehensive nor collision car insurance covers another person’s vehicle if you are in an accident. It also doesn’t cover medical bills from an accident.
Collision insurance is important to protect your vehicle from accidents beyond your control. Comprehensive insurance makes sense if you’re in a rural area or have a newer vehicle that could lose significant value from non-collision-related damage.
How much is comprehensive car insurance?
How much comprehensive car insurance coverage you should purchase and how much it costs can vary widely. Factors affecting comprehensive car insurance costs include total coverage and location. Here’s how each of these factors plays into your premium.
Coverage limits. Insurance companies work on probability and total possible payouts to protect themselves. A higher coverage limit generally results in higher premiums. For example, premiums for $10,000 in coverage will cost less than $100,000 in coverage.
Additional coverages and add-ons. Optional auto coverage or add-ons such as roadside assistance, rental car reimbursement, or gap insurance could increase the overall cost of comprehensive car insurance. Consider how often you will use the add-ons and whether you can add them inexpensively as needed or through a different plan.
Deductible chosen. The deductible is the amount the auto policyholder must pay toward a claim before the auto insurance coverage kicks in. Choosing a higher deductible often results in a lower premium, while a lower deductible may lead to higher premiums. If you have some savings or cash reserves, you could use to cover the deductible amount, comprehensive car insurance could become more affordable, but you also risk paying more out of pocket without reaching beyond the deductible threshold.
Insurance Score. An insurance score for car insurance is a numerical rating used by insurance companies to assess the risk associated with insuring a particular individual or vehicle. This insurance score relates to the probability of accidents or payouts and may increase insurance premiums. Like a credit score, the higher your insurance score, the less likely you are to file a claim. With insurance scores, high-risk drivers may face higher monthly premiums.
Credit history. In some jurisdictions, insurance companies may consider a driver’s credit history when determining insurance premiums. A poor credit history may result in higher premiums. However, if you have a low credit score, you can shop for auto insurers to find one that doesn’t consider this factor.
Age and driving experience. Inexperienced or young drivers tend to pay higher insurance premiums because of the higher risk associated with their age group. Statistically speaking, any age group or demographic more likely to be involved in an accident will face higher premiums as the frequency of insurance payouts increases.
Location. Location is one of the biggest factors in determining the cost of car insurance premiums. Areas with higher rates of accidents, thefts, or vandalism may result in higher premiums. If you move, you might notice your premium increasing or decreasing based on the new relative risk.
Driving record. Drivers with a history of accidents, traffic violations, or claims may face higher premiums as they are considered higher-risk individuals. That’s why some drivers pay out of pocket for repairs when possible to retain lower insurance premiums and focus on major repairs. Learn more about when not to file an insurance claim.
FAQ
Comprehensive insurance covers damage to your vehicle from non-collision incidents such as theft, vandalism, natural disasters, falling objects, fire, and animal collisions. It helps protect against unexpected events beyond accidents with other vehicles.
No, comprehensive insurance is not legally required. However, lenders or lease agreements may mandate it to protect their financial interest in the vehicle. Without a loan or lease, it remains optional but provides valuable protection.
Comprehensive insurance covers non-collision-related damage, such as weather events, theft, or fire. Collision insurance, on the other hand, pays for damage from crashes with other vehicles or objects. Both are often purchased together for full coverage.
Comprehensive coverage may apply to rental cars if your policy extends coverage to temporary vehicles. However, rental companies often offer their own insurance, so it’s important to check with your insurer before declining additional protection.
The cost depends on factors such as the vehicle’s value, location, deductible amount, and personal risk profile. Higher deductibles reduce premiums, while vehicles in high-theft or disaster-prone areas may have higher costs.