Random events outside of our control can happen at any time. Comprehensive insurance covers just about anything that can happen to your car apart from an accident. State laws don’t mandate comprehensive insurance, but dealerships and renters often require it for leased or financed cars along with collision insurance.
What’s Covered by Comprehensive Insurance?
| Accident | Description |
| Vandalism | For example, you can file a comprehensive insurance claim if your car is keyed or spray-painted. Damage to your belongings inside your car isn’t covered. |
| Theft | Comprehensive insurance will help pay for your vehicle if it’s stolen. Coverage also extends to theft-related events, such as damages from someone breaking into your vehicle. |
| Fire | Vehicle fires caused $1.9 billion in direct property damage in 2018. Comprehensive insurance will help you pay for fire-related repairs. |
| Animal Damage | You may get reimbursed for car damage caused by your pets. |
| Slight negligence | The definition of “slight negligence” differs from state to state. Some policies may cover slight negligence that leads to vehicle damage. |
| Windshield or Glass Damage | Coverage applies in the event of debris damaging your windshield. Policies also cover repairs for cracks or chips. |
| Civil disturbance | You may be reimbursed for the cost of repairs if your car was damaged during a riot. |
| Flooding | You may be reimbursed for the cost of repairs if your car was damaged from a flood. |
Comprehensive insurance doesn’t cover collision with another vehicle, collision with a road hazard, tree or guardrail, or damage resulting from your car being flipped. Providers might also reject your claim in situations of negligence. For example, your claim might be rejected if you left your keys inside your car or if you didn’t maintain your trees.
Here are some items that comprehensive insurance doesn’t cover:
- Damages to another driver’s property if you caused an accident
- Legal fees
- Repairs from wear and tear
- Treatment costs for injuries you or others sustained
- Theft of personal property in your car
- Lost income resulting from an accident
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How Does Comprehensive Insurance Work?
Comprehensive insurance is considered full coverage insurance. It will help you pay for car repairs from non-collision-related incidents. Unlike liability coverage, most comprehensive insurance is subject to a deductible. The deductible is usually around $500 to 1,500. Say someone tries to break into your car resulting in $1,500 worth of damage. Your insurer would then pay $1,000 to repair that damage if your deductible was $500. If you’re driving a $10,000 car that’s totaled during a covered event, and you have a $1,000 deductible, then your policy will reimburse you $9,000 for your car. Your insurer will declare your car as totaled if the repair cost exceeds the car’s value. If you still choose to repair the car, your insurer would simply subtract the car’s salvage value from your total payout. Keep in mind that you can lower the cost of your comprehensive insurance by raising your deductible.
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How Much Does Comprehensive Insurance Cost?
According to the National Association of Insurance Commissioners, the average comprehensive insurance policy in the United States costs about $160 per year. You’ll likely be required to purchase both comprehensive and collision coverage for your car. You will also have to select a deductible for your comprehensive insurance policy. Average deductible amounts range from $500 to $1,500. Your deductible is the amount you’ll have to pay when you file a claim. Your insurance company will then send you a payment for the amount approved on your claim, minus the deductible amount. If your car is totaled by a covered event, your insurance provider will declare the car a total loss. You can then choose to fix the car anyway or accept payment minus the deductible. If your vehicle is stolen, your insurance provider will pay to replace the vehicle or will give you the actual cash value of your vehicle.
Here’s a list of some factors that can affect your comprehensive insurance policy cost:
- Driving record and accident history
- Vehicle make, model, age, and mileage
- Age
- Deductible you choose
- State you live in
Here’s a list of the top comprehensive insurance providers of 2022:
- Travelers Insurance – Best for the lowest price
- USAA – Best for veterans
- The Hartford- Best for drivers above the age of 50
- Erie – Best for local coverage (Only available in 12 states)
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Pros and Cons of Comprehensive Insurance
| Pros | Cons |
| Protects against theft, weather-related events, and other incidents beyond your control like thefts and break-ins | No coverage for damage caused by a collision |
| Provides compensation for some common occurrences like glass damage and animal collisions | May not be necessary if you have an older car with high mileage |
| – | No coverage for items stolen from your car |
| – | No coverage for damage due to potholes |
| – | Comprehensive insurance usually costs more than basic car insurance |
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So, Is Comprehensive Insurance Really Worth It?
Consider buying comprehensive insurance if you’re in any of these situations:
- Your car has a high value – Coverage will repair damage resulting from non-collision-related events, or else you’ll have to pay for those repairs yourself.
- Your car isn’t paid off or is a lease – Comprehensive insurance is usually mandatory if you’re financing or leasing.
- You can’t save enough money to replace your car – Comprehensive insurance will pay to replace your car if it’s totaled in most cases.
- You live in an area prone to natural disasters – Consider your car’s risk exposure to weather hazards. Buying comprehensive car insurance might be a good idea if you live somewhere with frequent floods, hurricanes, or earthquakes.
- You live in an area prone to car theft – Dense urban areas tend to have an increased risk for theft or vandalism. If this is your situation, expect higher premiums, but your car would also be replaced if stolen.
Comprehensive insurance might not be worth it if you’re in these situations:
- Your vehicle is paid off
- Another family member’s policy can cover your car
- Your car is low-value
- You have enough money to replace your car
- Your premiums are worth more than 10% of your car’s cash value