Comprehensive Car Insurance: Is it Really Necessary?

Choosing the right car insurance coverage can make your head spin. With so many types of coverages, deductibles, and options, it can be challenging to determine what’s best for you. If you’re like me and like to shop for new car insurance annually, it’s important to know the types of coverage you need.

One of the most commonly debated auto insurance coverage is comprehensive insurance. This guide will show you what this type of policy covers and how it works so you can decide whether the coverage is worth the cost.

What is comprehensive car insurance?

Comprehensive car insurance is an auto insurance product that typically covers non-collision incidents, such as a stolen vehicle or a car hit by a falling tree. Most states don’t require this coverage; they typically only have minimum liability insurance coverage, which is another type of coverage, so it’s up to you if you want it.

However, despite state laws, you may need comprehensive and collision insurance if you finance your vehicle. Most lenders require this to ensure proper coverage should you total the vehicle in an accident, or the car is damaged or stolen.

What comprehensive car insurance covers

Comprehensive insurance covers non-collision damage to your vehicle and typically theft of your car or its parts.

Here are some of the common damages covered by many comprehensive insurance policies:

• Theft of car or parts
• Vandalism
• Riots
• Natural disasters, such as hurricanes, floods, or tornados
• Falling objects, such as trees or branches
• Contact with animals
• Fire
• Broken windshield

Think of comprehensive coverage for things like:

• Glass damage to your windshield because a rock cracked it
• A tree fell onto your car during a storm

While there’s a low chance of a tree falling on your car, it might be worth it to have a safeguard in place so you don’t have to deal with a potential financial headache down the road.

Even if you aren’t required to get comprehensive insurance, I’d consider it if:

• The area you live is prone to natural disasters, such as floods or hurricanes
• Hail storms are common in your area
• Theft or vandalism rates are high where you live

What comprehensive car insurance doesn’t cover

Like any insurance coverage, comprehensive car insurance doesn’t cover everything, including the following:

• Damage to your car from a collision with another vehicle or object
• Damage to another car or piece of property resulting from a collision
• Medical expenses that result from a car accident
• Mechanical breakdown
• Normal wear and tear
• Routine car maintenance
• Theft of personal items within your vehicle

It seems like there’s a lot this coverage won’t cover, which is why it’s best to have multiple policy types for complete coverage, or you could consider full coverage car insurance. To be clear, full coverage isn’t an actual insurance policy, but rather a combination of liability, collision, and comprehensive insurance.

Comprehensive vs. full coverage insurance

Full coverage insurance isn’t a policy itself, but a term that includes all potential coverage options including:

• Liability (property damage and bodily)
• Personal injury protection
• Uninsured/underinsured coverage
• Comprehensive insurance
• Collision insurance

It covers all the bases and ensures you have ultimate coverage. Comprehensive only covers non-collision related incidents.

Before buying full coverage, though, ensure you need all that coverage, especially if you drive an older car.

How much does comprehensive car insurance cost?

Comprehensive coverage typically accounts for a low percentage of your full car insurance costs. For example, the Insurance Information Institute states the average cost of comprehensive insurance is just over $134 per year.

These factors may affect your costs:

• The type of car you drive
• The value of your vehicle
• Your driving record
• Where you live
• How often you drive
• Where you park your car
• Your age
• Your gender
• The types of policies you want and the limits you choose for coverage
• The car insurance deductible on your comprehensive policy

Remember, the deductible is the amount you would pay before your insurance kicks covers anything. For example, if you have a $500 deductible and your car needs $2,000 in repairs resulting from falling objects during a windstorm, you would have to pay $500 and your insurance would cover the remaining $1,500. Choosing a higher deductible might decrease your monthly insurance premiums.

How to get the right auto coverage

Knowing how to get car insurance ensures you get the right coverage for your situation while saving money when possible. Here are a few tips to keep in mind during your search:

• Understand different policies. Liability, collision, and comprehensive coverage are all different. Knowing what these and other policies cover could help you decide what you need.
• Know your state requirements. Most states require a minimum amount of liability coverage, but the amount of necessary coverage can vary depending on where you live. Certain states may also require additional insurance, such as personal injury protection and uninsured motorist or underinsured motorist coverage.
• Know the factors that can affect your rate. You can’t control your age and don’t always have much control over where you live. But certain factors, such as deductible amounts and coverage limits are often your choice.
• Review your coverage needs. How much auto insurance coverage do you need? What types of coverage do you feel are necessary? For comprehensive coverage, consider where you live and whether certain natural disasters or weather patterns are more common.
• Compare insurance providers. It’s important to find the best car insurance by comparing options from several insurance companies. Rather than looking at rates from one company, compare multiple companies to see who offers the best coverage at the lowest prices.

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Bottom line

Not everyone needs comprehensive insurance, but it’s often a good idea, especially if you financed your car. Comprehensive coverage is usually pretty affordable, and covers you in those “rare instances” that you think may never happen to you.

I suggest getting quotes from several insurance companies and comparing the coverage options offered to ensure you get the policy that best suits your needs.

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