Comprehensive auto insurance cover is a crucial component of automobile insurance, providing coverage for damages to your car from various non-collision causes.
Unlike collision insurance, which covers accidents involving other vehicles or objects, comprehensive insurance protects against a wider range of risks.
Let’s delve deeper into what comprehensive insurance entails, what it covers, and its advantages and disadvantages.
What Is Comprehensive Auto Insurance Cover?
Comprehensive auto insurance cover is an essential part of an automobile insurance policy, along with collision insurance and liability insurance.
While liability insurance is typically mandatory, comprehensive and collision insurance are optional for vehicle owners, especially those who own their vehicles outright.
However, if you’ve financed your vehicle, the auto loan company may require you to have comprehensive insurance.
What Does Comprehensive Auto Insurance Cover?
Comprehensive auto insurance covers damages to your vehicle caused by various factors, including:
- Contact with animals, such as hitting a deer
- Natural disasters like earthquakes, floods, and hurricanes
- Fire
- Riots and vandalism
- Vehicle theft or theft of certain parts
- Broken windshields
- Fallen objects like branches, rocks, or hail
Comprehensive Insurance vs. Collision Insurance
While comprehensive auto insurance protects against damages beyond your control, collision insurance covers damages resulting from collisions with other vehicles, objects, or rollovers.
Collision insurance is typically required if you lease a vehicle.
Factors Influencing the Cost of Comprehensive Insurance
The cost of comprehensive auto insurance varies depending on factors such as your location, driving record, and the value of your vehicle.
For instance, the average cost of comprehensive auto insurance ranges from approximately $134 to nearly double that, with the most expensive state being Louisiana and the least expensive being North Dakota.
Advantages of Comprehensive Auto Insurance
- Protection Against Theft and Natural Disasters: comprehensive auto insurance ensures you’re covered if your car is stolen or damaged by natural disasters like floods, hurricanes, or earthquakes.
- Coverage for Weather-Related Events: You won’t have to worry about paying out of pocket if your car is damaged by hail, fallen branches, or other weather-related incidents.
- Covers “Unforeseen Events”: Comprehensive coverage extends to unexpected events like break-ins or damage to windshield wipers due to hail.
- Ideal for New Cars in High-Crime Areas: If you own a new car and live in an area prone to theft or break-ins, comprehensive insurance provides peace of mind.
Disadvantages of Comprehensive Auto Insurance
- Doesn’t Cover Collision Damage: Unlike collision insurance, comprehensive auto insurance does not cover damage caused by collisions with other vehicles or objects.
- May Not Be Necessary for Older Cars: If you have an older car with high mileage, the cost of comprehensive auto insurance may outweigh the benefits.
- Doesn’t Cover Personal Items Stolen from Your Car: While it covers damage to your vehicle, comprehensive auto insurance does not protect personal belongings inside the car.
- Excludes Damage from Potholes: Comprehensive auto insurance does not cover damage to your car caused by potholes or other road hazards.
Example of Comprehensive Auto Insurance
To better understand how comprehensive insurance works, consider the following scenario:
- Vehicle: Honda Accord worth $10,000
- Deductible: $1,000
- Claim: A tornado destroys the car
With comprehensive auto insurance, the driver would receive $9,000 from the insurance company, assuming a $1,000 deductible.
However, without comprehensive coverage, the driver would be responsible for the entire $10,000 loss.
How Does Comprehensive Auto Insurance Work?
Comprehensive auto insurance, like other forms of auto insurance, covers a portion of the cost if your car is damaged.
You’ll need to pay a deductible, which is a set amount, before your insurance kicks in. This payment can be used for repairs or to replace your vehicle.
What Does Comprehensive Auto Insurance Cover?
Comprehensive auto insurance provides coverage for various damages to your vehicle, excluding those from collisions.
This includes damage from natural hazards like deer strikes, falling limbs, fires, weather events, natural disasters, theft, and acts of vandalism.
However, it does not cover damages from collisions with other vehicles or injuries to passengers or other individuals.
How Much Does Comprehensive Auto Insurance Cost?
The cost of comprehensive auto insurance varies depending on factors such as your vehicle’s value, your location (zip code), and your past insurance history.
On average, comprehensive insurance can range from approximately $134 annually to about twice that amount.
Does Comprehensive Auto Insurance Cover Damage From Potholes?
No, comprehensive auto insurance does not cover damage caused by potholes in the road. Collision insurance, on the other hand, covers damage from collisions with objects, including potholes.
Conclusion
If you’ve paid off your vehicle and cannot afford comprehensive auto insurance, or if you own an older vehicle with low value, you may consider skipping comprehensive coverage.
Alternatively, if you prefer to self-insure, you might decide not to purchase comprehensive auto insurance.
However, keep in mind that forgoing comprehensive coverage could result in significant repair costs if your car is damaged.
It’s essential to weigh the potential repair costs against the premiums or deductibles required for comprehensive coverage.
