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.
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.
Comprehensive coverage usually includes damage caused by:
It covers non-collision events, not crashes with other cars or objects.
Your policy will outline exactly what’s covered and what’s not.
Comprehensive coverage does not pay for:
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.
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.
When choosing your deductible, think about:
A higher deductible usually means a lower premium, but you’ll pay more if something happens.
Your insurance advisor can walk you through this step-by-step. Real-world examples of comprehensive claims
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.
Comprehensive coverage is generally standardized across insurance companies, but some may offer:
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:
Disadvantages:
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.
That depends on:
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
Costs vary depending on:
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:
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
