What Does Comprehensive Auto Insurance Cover?
What Exactly Is Comprehensive Auto Insurance, and What Does It Include?
Comprehensive auto insurance covers non-collision damages. That’s why it’s also called “other than collision” coverage. Unlike liability insurance, it’s not mandatory. The highest compensation you can get from the policy is up to the value of your car.
Even though comprehensive insurance is optional coverage, it’s required when you lease or buy a car on loan. If you pay cash, you can decide whether it’s worth it. Though it makes owning a car a bit expensive, it provides protection against a wide range of potential issues. Plus, you can usually get a price reduction if you bundle it with other policies.
So, what does comprehensive auto insurance cover? Here’s everything you need to know.
What Is Covered by Comprehensive Auto Insurance?
Simply put, comprehensive auto insurance covers damages that don’t result from a collision. When you collide with another car, collision insurance takes care of that. But everything else is covered by comprehensive insurance. Some people mistakenly call it “full coverage.”
That’s wrong because full coverage isn’t a policy by itself but a collection of many policies. After all, no single insurance policy can cover everything. So, what does comprehensive auto insurance cover?
Here’s a detailed list:
- Natural disasters like floods, tornadoes, earthquakes, volcanic eruptions, and hurricanes
- Hitting an animal
- Riots, vandalism, and theft of the whole car or its parts
- Falling objects like rocks, ice, trees, and building structures
- Damage to the windshield
If you hit a deer, the comprehensive policy will cover your losses. But if you swerve to escape the deer and hit a tree, the policy won’t pay. Instead, the collision coverage will pay.
Here are more causes that comprehensive insurance doesn’t cover:
What Comprehensive Car Insurance Won’t Cover
Generally, the comprehensive policy doesn’t pay for losses covered by collision and other types of insurance.
- Hitting another car
- Damages to the second car involved in the accident
- Medical expenses for you and your passengers
- Hitting a stationary object like a mailbox
- Normal wear and tear of different parts of the car, like tires and brakes
- Damages caused by poor roads, such as potholes
- Cost of towing the vehicle after an accident
- The cost of renting a car
How Much Does Full Coverage Insurance Cost?
A comprehensive insurance policy is among the cheapest. Since it pays to repair or replace your car, the policy value has to be equal to your car’s worth. Therefore, a more expensive vehicle will cost more to insure. But the accumulated depreciation will also affect the policy value.
Additionally, the insurance cost will also depend on your deductibles. An insurance deductible is the amount you agree to contribute out of your own pocket before the insurance company can make any payouts. A higher deductible reduces the premiums you pay.
Let’s say your deductible is $200, and the cost of repairing damage to your car is $500. First, you’ll contribute $200, and the insurance company will pay the remaining $300. If you increase the comprehensive deductibles to $500, the insurance company won’t pay anything. Since their contribution decreases when you increase deductibles, your premiums will also reduce.
Is Comprehensive Insurance Worth it?
Because comprehensive insurance is optional, most people have to decide whether it’s worth it. Approximately 79% of insured drivers in the U.S. have the policy. The two points you should consider are the level of risk involved and whether paying for damages out of pocket is possible.
If you live in an area with a high crime rate, many wild animals, or that’s prone to natural disasters, the policy will protect you. However, keep in mind that living in a high-risk area may result in higher insurance premiums. If you lose your car in an accident, paying the whole amount out of pocket can be hard. So, a comprehensive policy can also protect you in such instances.
Comprehensive auto insurance is optional unless you lease a car or buy one through financing. This policy covers many causes, from natural disasters to vandalism. Therefore, it’s worth buying comprehensive auto insurance because most people face at least one risk that falls under the policy.
If you’re looking for affordable car insurance in Clearwater, Coleman Insurance Agency can help. We work with multiple insurance companies, making it easier to align your needs with the best insurance provider. Call us for Clearwater auto and homeowners insurance. We’ll be glad to help with a free consultation.
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