Comprehensive Insurance: What You Need to Know About It

Based on the name alone, it would seem like it is a definite must for a car owner like you to add comprehensive insurance coverage to your auto insurance plan.

But do you really need it? Or more importantly, are you required to purchase it?

If currently you are thinking about getting your hands on comprehensive insurance, keep on reading this article - below you will come across some of the most important matters about it and also a bunch of frequently asked questions most car owners in the US would want answered.

Put simply, comprehensive insurance is something considered as one of the various main coverages available as an integral part of an auto insurance policy. You might be surprised to learn that it's nothing like liability coverage which is a requirement in all states except in New Hampshire. Needless to say, purchasing comprehensive insurance coverage is optional - it's completely up to you to decide whether or not it should be added to your existing auto insurance plan.

Do take note, however, that in some instances it will be a requirement for you to have comprehensive insurance. If you have a lease or loan on your car, then it is very much likely for the finance company or lender to require you to include comprehensive insurance coverage as part of your vehicle's full coverage.

Here's one very important thing you need to know about comprehensive insurance: it's something that won't cover damages to your car resulting from a collision with another car. Meaning to say, it won't pay for those dents resulting from a car-to-car accident.

Basically, comprehensive insurance will cover damages to your car that are due to reasons that are beyond your control. A few examples of those include:

  • Falling objects such as trees or rocks
  • Natural disasters like earthquakes and tornadoes
  • Weather conditions such as flood, hail and lightning
  • Explosions or fire
  • Theft
  • Vandalism
  • Civil disobedience or a riot
  • Damage caused by or collision with animals

In some states, damage to the glass or windshield of your car is also covered. What's covered exactly by comprehensive insurance can vary from one auto insurance company to the other. However, the ones mentioned above are those that are usually included by major auto insurance companies.

Evidently, despite what it's called comprehensive insurance coverage is not as comprehensive as one would think. It does not cover anything that results from a collision with the other car. But the good news is that it can take care not only of the repairs your car would need should it incur damage due to one of the reasons mentioned above, but also replace your car should it end up stolen.

Let's now take a look at some FAQs on auto comprehensive insurance:

Should I Get Comprehensive Insurance If My Car is Old?

While it's true that it is less likely for an old car to be stolen, it is not impervious to damage resulting from a falling tree or fire. What's more, the cost of repair remains the same whether the car is old or new. If you believe that the value of your old car is justifies getting additional coverage, then go ahead and purchase comprehensive insurance.

When Should I Purchase Comprehensive Insurance Coverage?

Just like what's mentioned earlier, it is not a requirement for you to purchase comprehensive insurance - it's nothing like liability insurance which is the state minimum requirement for auto insurance (except for New Hampshire). However, a finance company or lender may require you to get it if you have a lease or loan on your car.

How Much Does Comprehensive Insurance Coverage Cost?

Paying steep monthly premiums is the main reason why some car owners are wary of adding insurance coverages to their auto insurance plans. On average, the addition of comprehensive insurance increases premiums to about $30 monthly. However, the amount can vary greatly from one auto insurance company to the other.

Is Comprehensive Insurance Coverage Sold With a Deductible?

More often than not, auto insurance companies sell comprehensive insurance with a deductible. Choosing the deductible is usually done by the car owner, although the typical deductible for a comprehensive insurance coverage ranges anywhere from $100 to $300. Some people choose a higher deductible to bring down the cost of their monthly premiums.

Potential Rate Discounts

If you qualify for discounts, you may save the amounts shown below.

Discount Savings
Multi-policy $64
Multi-vehicle $61
Homeowner $17
5-yr Accident Free $81
5-yr Claim Free $86
Paid in Full/EFT $47
Advance Quote $66
Online Quote $94

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Discounts are estimated and may not be available from every company or in every state.

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