Comprehensive auto insurance is coverage that helps pay for the replacement or repair of your vehicle if it's stolen or damaged in an incident other than a collision. Comprehensive coverage, also called collision coverage, usually covers damage caused by fire, vandalism, or falling objects (such as a tree or hail). Comprehensive insurance automatically covers you up to the market value of your vehicle minus your deductible. This means that all you have to decide is whether you need comprehensive insurance and how high your deductible should be.
Comprehensive insurance is coverage that helps pay the cost of damage to your vehicle when you are involved in an accident not caused by a collision. Comprehensive insurance coverage is defined as optional coverage that protects against damage to the vehicle caused by events not related to a collision that are beyond your control. While both protect your vehicle, collision coverage is available in the event of a collision, while comprehensive coverage is for non-collision events that are beyond your control. Keep in mind that comprehensive insurance will only cover damage up to the limits of your policy, minus your deductible.
An example of what comprehensive insurance covers is theft, vandalism with graffiti or damage caused by the fall of a branch of a tree. Comprehensive car insurance doesn't cover things like collisions with other vehicles or inanimate objects on the road, such as hitting a pothole. Comprehensive car insurance covers losses caused by theft, vandalism or extreme weather events. A comprehensive insurance deductible is the amount of money you'll pay out of pocket for car repairs before your insurance company pays the rest.
Comprehensive coverage isn't required by law in any state, but lenders generally require it if you rent or finance your vehicle. Although often referred to as comprehensive insurance, comprehensive coverage refers to coverage specific to an existing policy, not to a separate type of insurance. As a reminder, a comprehensive deductible is the amount you have to pay out of pocket when filing a comprehensive insurance claim. You should consider buying comprehensive coverage if you can't afford to pay out of pocket for your car repair or replacement in the worst-case scenario.
In that case, there is no doubt that it is worth taking out comprehensive insurance, because if the requirements of the lender or landlord are not met, it could result in the forced imposition of expensive insurance or even in the recovery of possession. A good rule of thumb is that if the cost of comprehensive insurance exceeds 10% of the value of your vehicle, you can consider reducing it.
