What Is Comprehensive Insurance and Do I Need It? (2024) (2024)

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Comprehensive insurance covers the maximum amount based on the actual cash value (ACV) of your vehicle minus your chosen deductible. While collision coverage pays for repairs to your vehicle after a car accident, comprehensive insurance generally protects your vehicle while it is parked. It also fills in some of the gaps in the typical collision insurance policy, such as if you hit an animal while driving.

Comprehensive Coverage

Examples of damages to your car that are covered by a comprehensive insurance policy include:

• Vandalism
• Theft
• Hailstorms
• Rodent damage
• Fire
• Floods
• Tornadoes
• Hurricanes
• Falling objects
• Collision with a deer or other large animal

A comprehensive claim will pay out a maximum amount based on the actual cash value (ACV) of your vehicle, minus your chosen deductible.

What Doesn’t Comprehensive Auto Insurance Cover?

Despite the name, there are some exclusions to comprehensive coverage. Comprehensive insurance does not cover damage to another person’s property, any medical expenses or the value of items stolen from your car.

Damage that is covered by collision insurance is not covered by comprehensive insurance. This includes:

• Collision with another vehicle
• Collision with a road hazard, tree or guardrail
• Damage resulting from your car being flipped

Comprehensive vs. Full Coverage Insurance

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.

It’s typically recommended that drivers carry full-coverage car insurance. This is a portfolio of car insurance coverage that protects your vehicle in almost every scenario. In addition to comprehensive and collision insurance, full coverage policies generally include the following types of coverage:

• Bodily injury liability insurance: Covers medical bills and related costs for drivers and passengers of other vehicles in an accident you caused
• Property damage liability insurance: Covers the cost of collision damage to other vehicles and properties in an accident you caused
• Personal injury protection (PIP): Covers your medical expenses and lost wages as a result of an accident, regardless of who’s at fault
• Underinsured/uninsured motorist coverage: Covers damages and expenses in the event that an at-fault driver lacks adequate auto insurance coverage

Even if you are not required to purchase comprehensive insurance, it may be a good idea to add it to your car insurance policy, especially if you have a new car or the value of your vehicle is high. Remember, comprehensive and collision insurance don’t just protect the value of your car — they also bring you peace of mind knowing that you’re completely covered.

Is Comprehensive Insurance Required by Law?

Comprehensive insurance is not required by state law. However, if you lease or finance your vehicle, your lender may require that you purchase a comprehensive policy until the end of your lease or until your vehicle is paid off.

Comprehensive insurance works similarly to other types of car insurance coverage when filing a claim. If you find yourself in a situation where your car was crushed by a tree or damaged by hail, here’s how your comprehensive car insurance would work:

1. You’ll document any recently noticed damages. Call your insurer immediately. You’ll be reimbursed for any repairs if you file a claim, minus your deductible. If you have roadside assistance, your insurer will pay for your car’s tow to the repair shop.
2. Your auto insurer will send an adjuster. They’ll inspect your car and estimate initial repair costs. After this, you have the choice to accept the estimate and have your car towed to your insurance company’s preferred repair shop, where repairs will typically be guaranteed for as long as you have the car.
3. You’ll pick up a rental car. If you have rental reimbursem*nt coverage on your policy, your insurer will cover the costs associated with getting a rental while your vehicle is in the repair shop. Your car could be in the shop for a while, so you may need to do this.
4. You’ll pick up your car after repairs. This is also when you will pay the repair shop your deductible.

Keep in mind that anytime you file an insurance claim, your renewal rates may go up. We recommend that you shop around for car insurance and compare car insurance quotes regularly to ensure you’re getting the lowest rates and best coverage possible.

According to the most recent data collected by the National Association of Insurance Commissioners (NAIC), the average annual comprehensive insurance premium for drivers in the U.S. in 2019 was $171.87. Comprehensive insurance from California was the least expensive, with an average of just $96.53. In the most expensive state, South Dakota, the average was $347.61.

Comprehensive Deductible

Your comprehensive deductible is how much you pay out of pocket after a claim is approved to repair or replace your vehicle. Thus, up to the cash value of your vehicle, the remaining expenses are covered by the insurance company after the deductible is paid.

You can raise your deductible with your insurer, causing your insurance premium to go down. But you’ll have higher out-of-pocket costs if your vehicle is damaged.

How Much Should My Comprehensive Deductible Be?

Most drivers will need to pay a deductible for comprehensive car insurance or a predetermined amount that is subtracted from a claim check — typically $500 to $1,500.

Say your car was hit by a severe hailstorm, causing $2,000 worth of damage to your vehicle’s roof. If you had a $500 deductible and filed a comprehensive claim with your insurance company, your insurer would pay out $1,000 to repair your car.

Is Comprehensive Insurance Worth It?

To determine if a comprehensive policy is a good idea for you, start by calculating what your car is worth and subtract the amount of your deductible — this is the most value you can expect to get from your policy should the worst occur. Compare this number with the cost of your insurance payments to decide how much car insurance you need.

Comprehensive Car Insurance Quote

If you’re looking for a comprehensive insurance policy, it’s a good idea to shop around and compare providers. We recommend reaching out to several of the best car insurance companies to get a quote for comprehensive coverage.

When you speak with an agent for a quote, your estimate for a comprehensive insurance policy will vary depending on a number of factors. These include:

• Age: Younger drivers typically pay much higher rates for insurance, with teen drivers paying the most.
• Driving record: Your accident history, traffic violations, and other elements of your driving record factor into your rates. Drivers with recent accidents or violations like speeding tickets will pay higher rates for coverage.
• Vehicle: The age, make, model and mileage of your vehicle are all considerations for your insurance rates. In general, the less valuable a car is, the less you’ll pay for insurance.
• State: Insurance regulations and risk factors vary from state to state. As a result, there can be a dramatic difference in the average insurance rates between states.
• Deductible: In most cases, you can choose the deductible amount in your insurance policy. This is the amount you are responsible for paying toward an insurance claim before the company pays the rest. A higher deductible will get you lower rates.
• Coverage limit: Your state has minimum coverage limits, but you can opt for more coverage.

Comprehensive insurance coverage is similar to bad luck coverage for your vehicle. It will cover any damage sustained from theft, natural disasters or vandalism. Further, comprehensive coverage can be purchased as part of a full–coverage car insurance policy to protect both you and your vehicle in the event of an accident or bad luck.

We recommend reaching out to several of the best car insurance companies to get a quote for comprehensive coverage.

Comprehensive Car Insurance Companies

Because rates are based on your unique driver profile, the best insurer for your neighbor may not be the best option for you. You can start comparing free car insurance quotes using the tool below. Be sure to consider policies with two of our top-rated providers: USAA and State Farm.

State Farm: 9.5 out of 10.0

State Farm can be a good option for students because of its many discounts for young drivers. The company’s TM tracks driving behaviors through a mobile app, helping drivers earn up to a 30% discount on their premiums. State Farm’s Steer Clear^®
is designed for teen drivers that provides course training and driving practice for teen drivers. Completion of the program provides a discount.

In an August 2022 consumer survey, we polled nearly 7,000 car insurance customers on their experiences with their auto insurers. Of the 19% of respondents that had a State Farm policy, the majority were generally happy with the company:

Keep reading: State Farm insurance review

Compare: State Farm vs. Geico, State Farm vs. USAA

USAA: 9.2 out of 10.0

USAA has a positive reputation in the insurance industry, known for offering top-notch customer service and some of the cheapest car insurance rates in the country. The only major drawback of USAA is that you must be a former or current member of the military to qualify for coverage, or be the spouse or child of one who holds a policy with USAA.

In addition to standard auto insurance policies, USAA offers glass coverage, guaranteed asset protection coverage, car replacement assistance (CRA) and rideshare insurance. Drivers can also use USAA SafePilot to save on insurance rates.

In our August 2022 car insurance survey, we found that over half of USAA policyholders were satisfied with their car insurance, giving the company four stars or above:

Keep reading: USAA insurance review

Compare: USAA vs. Progressive

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.