What Is Comprehensive Insurance? (2024)

FAQs

What does comprehensive mean in insurance? ›

Comprehensive insurance coverage is defined as an optional coverage that protects against damage to your vehicle caused by non-collision events that are outside of your control. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature.

If your car is damaged in a road collision with another car or object and you're at fault, only your collision coverage can help pay to repair it. Only comprehensive coverage covers losses caused by contact with animals, civil disturbances, fires, natural disasters, theft, and vandalism.

If you're more likely to get into an accident, you won't want to pay out a higher deductible. However, if you're generally a safer driver, your car insurance premiums will be lower with a $1,000 deductible.

So, if you live in a location with a high level of theft, weather-related damage or other comprehensive claims, your insurer may compensate for the added risk by raising your comprehensive insurance premiums. Your comprehensive premiums also rise when your insurer raises rates across all types of coverage.

If you don't have a loan or lease on your car, comprehensive insurance likely isn't required. And if the vehicle isn't worth much, it may not make financial sense to keep the coverage. Compare the value of your car to your comprehensive deductible plus the amount you pay for the coverage.

Most of the time, it isn't a good use of money to have full coverage on an older car. After an accident, you will likely get the actual cash value of the vehicle, which is usually not that much more than the extra cost of the insurance.

​Cons of Comprehensive Car Insurance:

The comprehensive protection it provides results in higher prices for policyholders. Deductibles May Apply: Comprehensive insurance usually includes a deductible, which is the amount you must pay out of yourself before the insurance coverage kicks in.

Comprehensive coverage: Deductibles for comprehensive coverage, which covers damage to the vehicle from a non-driving peril, like extreme weather, theft and vandalism, are typically set at $500 or $1,000. Collision coverage: Drivers can typically choose to pay $500 or $1,000 as their collision deductible.

If you want to have peace of mind on the road, comprehensive coverage can be worth it as it will help to repair or replace your vehicle when damage is sustained from events other than an auto accident.

However, let's say you want extra coverage for your car, so you sign up for comprehensive insurance. The average auto insurance deductible is $500, but you could also select amounts like $250, $1,000 or $2,000; this will also affect your policy's premium.

Is a $2 000 deductible good for car insurance? ›

Yes, a $2,000 deductible is good for car insurance if you want a lower monthly premium. The most common deductibles are $500 and $1,000, but a higher deductible can be a good option if you can afford to pay more out of pocket in the event of a claim.

Before you choose a deductible, most insurance professionals recommend you figure out what you can afford to pay if your car is damaged in an accident. If your budget allows for a maximum out-of-pocket expense of $500, you probably should not choose a deductible higher than $500.

Does credit score affect car insurance rates? Yes. A higher or lower credit score can have a big impact on your insurance rate. Poor credit increases full coverage rates by 86% compared to good credit.

The top 10 cheapest car insurance companies are Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers and USAA.

If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.

The difference between full coverage and comprehensive insurance is that a full-coverage insurance policy includes liability, comprehensive and collision coverage. Comprehensive insurance covers damage to a car from things other than road accidents.

Comprehensive covers damage to your vehicle from unexpected non-collision incidents like theft, animal damage, falling trees, and weather damage. Collision covers damage to your vehicle that's the result of a collision with another vehicle or object.

Yes, a comprehensive claim might increase your rate, but maybe not as much as an at-fault accident would. Comprehensive claims include non-collision events like car theft, car vandalism, car fire, chipped/cracked windshield, hitting an animal, and acts of nature.

» MORE: How much car insurance do you need? However, let's say you want extra coverage for your car, so you sign up for comprehensive insurance. The average auto insurance deductible is $500, but you could also select amounts like $250, $1,000 or $2,000; this will also affect your policy's premium.