Comprehensive Coverage: Is it Necessary?

Comprehensive insurance covers damages to your car for incidents aside from collisions, such as theft and vandalism. While comprehensive coverage is not legally required, if your vehicle is leased or financed, you may be required to buy it. But what does that include and not include?

What It Covers

• Auto vandalism
• Auto theft; you’ll get reimbursed for any costs to repair or replace parts of your vehicle
• Damages from weather, like flood coverage, hail coverage, etc.

What It Doesn’t Cover

• Collisions, with other cars, potholes, and any other objects
• Injuries
• Any injuries or damages you caused on purpose
• Ridesharing coverage
• Any commercial purposes
• Nuclear explosions
• War
• Bio-chemical attacks
• Wear and tear
• Freezing
• Tire damage
• Mechanical/electric breakdown/failure
• Custom equipment or any electronic equipment that your manufacturer didn’t install
• Vehicles that:
  • Have fewer than four wheels
  • Are unlisted
  • Are used for preparing for or competing in a race
  • Are not meant to be used on public roads¹
• Punitive damages, including recklessness, malicious acts, or gross negligence²

How It Works

If your car got damaged under a covered comprehensive claim, first, you would pay your comprehensive deductible. Then, your insurance provider would cover the rest of the costs up to the limit you’ve selected. Beyond your limit, you’ll be responsible for the costs out of pocket.

Cost

The average monthly cost of comprehensive coverage in the U.S. is $14.32, or $171.87 annually. See below for your state’s average, as costs for comprehensive auto insurance vary by state.

Most people driving need comprehensive coverage. However, there are some exceptions.

You need comprehensive coverage if:

• You have a new car.
• You have a broken-down car.
• You have a car in storage.

Even cars that aren’t being driven need insurance for theft, vandalism, and weather-related incidents.

You don’t need comprehensive coverage if:

• You have an old car. With older cars, their value has often depreciated to the point where an accident would total it, meaning the damages cost more than the car’s value. In that case, it may make sense to either pay for damages out of pocket or simply get a new car.

Let’s dive deeper into the deductibles and limits behind comprehensive insurance.

Deductibles

If you’re not familiar with how deductibles work, the deductible is the amount that you have to pay toward a covered claim before your insurance provider will contribute.

Your comprehensive coverage has its own deductible, which you will select. Make sure that if you got a covered claim tomorrow, you could afford your deductible. On average, comprehensive deductibles are $500, although they can be anywhere from $0 to $2,000.

Although they’re not the same thing, comprehensive coverage is often grouped with collision coverage. Both cover damages to your vehicle, but there are some key differences to be aware of.

What Is Collision Coverage?

First, let’s define collision coverage. Collision coverage covers damages to your vehicle from a car accident in which you were at fault. It also covers damages from rolling cars and potholes. However, it doesn’t cover normal wear and tear or mechanical damage.

Similarities and Differences

Let’s compare collision and comprehensive coverage.

• Similarities: Both coverages apply to your car’s damages in an at-fault accident, not the other party’s damages. Both aren’t required by law, both include deductibles, and both are only necessary for new cars, not old cars.
• Differences: Collision coverage covers damage from collisions, while comprehensive coverage does not. Collision coverage is more expensive than comprehensive coverage by an average of 90 percent. Finally, broken-down cars or cars in storage need only comprehensive coverage, not collision.

Comprehensive coverage is not the same as full coverage. Rather, it falls under full coverage’s umbrella along with liability coverage (property damage coverage and bodily injury coverage), collision coverage, and medical payments coverage. Learn more about the differences between full coverage and liability insurance.

If you’re not sure whether comprehensive insurance is right for you, speak to your insurance agent or broker. However, unless you want to pay out of pocket for theft, vandalism, or weather events like hail, comprehensive coverage is a necessity.

We’ve received a flood of questions about comprehensive coverage. Here are our expert answers.

What does comprehensive coverage include?

Comprehensive coverage includes any weather-related incidents, theft, and vandalism.

Is comprehensive coverage the same as full coverage?

Comprehensive coverage isn’t the same as full coverage, but it is part of full coverage along with liability, collision, and medical payments coverage.

Is hitting a deer covered by comprehensive coverage or collision coverage?

Hitting a deer is covered by collision coverage, as it’s a type of collision.

Will comprehensive claims raise my insurance costs?

Comprehensive claims won’t raise your insurance costs because the events weren’t your fault, by definition. In contrast, some collision claims will raise your insurance costs, if you were involved in an at-fault accident.