What is Comprehensive Auto Insurance?
Comprehensive auto insurance is a type of coverage that helps pay to repair or replace your vehicle if it’s stolen or damaged in an incident that’s not a collision.1 It’s often referred to as “other than collision” coverage.
What Does Comprehensive Auto Insurance Cover?
Comprehensive coverage typically covers damages caused by:
- Natural Disasters: This includes events like hurricanes, floods, earthquakes, and tornadoes.4
- Weather-Related Events: Hail damage, wind damage, and falling objects are covered.5
- Vandalism and Theft: If your vehicle is vandalized or stolen, comprehensive coverage can help pay for repairs or replacement.6
- Animal Collisions: Damage caused by collisions with animals, such as deer or raccoons, is covered.7
- Fire and Explosions: Damage from fires or explosions is also included.
Is Comprehensive Insurance Required?
While comprehensive insurance is optional, it’s often required by lenders if you’re financing or leasing a vehicle.9 This is because lenders want to protect their investment in case of theft or damage.
How Much Does Comprehensive Insurance Cost?
The cost of comprehensive insurance varies depending on several factors, including:
- Your Vehicle’s Value: More expensive vehicles generally have higher premiums.12
- Your Driving Record: A clean driving record can lead to lower premiums.13
- Your Location: Areas with higher rates of theft or vandalism may have higher premiums.14
- Your Deductible: A higher deductible can lower your premium, but you’ll pay more out-of-pocket in case of a claim.
Do You Need Comprehensive Insurance?
The decision to purchase comprehensive insurance depends on several factors:
- Vehicle Age and Value: If you have a newer or more expensive vehicle, comprehensive insurance can be a wise investment.
- Your Financial Situation: Consider your financial situation and whether you can afford to repair or replace your vehicle out of pocket.
- Local Risk Factors: If you live in an area with a high risk of theft or natural disasters, comprehensive insurance may be especially important.
By understanding the benefits and limitations of comprehensive auto insurance, you can make informed decisions about your coverage needs and protect your investment.