A to Z Insurances

Comprehensive Car Insurance

 With No Deposit/No Down Payment.

What is Comprehensive Car Insurance?

Last Updated on April 6, 2024 by a2z_admin


Comprehensive car insurance is a type of coverage that helps you out if your car gets stolen or damaged, but not in a crash. It’s like a safety net for your vehicle. They sometimes call it “other than collision” coverage because it takes care of things like fires, vandalism, or if something falls on your car, like a tree or hail.

If you’re still paying off your car or leasing it, the folks who gave you the loan probably want you to have comprehensive coverage. But if you fully own your car, it’s up to you if you want to add this extra protection to your insurance plan.

So, if you’re looking into getting this kind of car insurance or just checking out your current plan, it’s good to understand what exactly it does. Learn about the things it helps with, how it’s different from collision coverage (which is about crashes), and also get a grip on terms like limits and deductibles – they’re the rules of the game when it comes to this coverage.

How Does Comprehensive Coverage Work?

If something happens to your car and it’s covered by comprehensive insurance, here’s how it works: you let your insurance company know and file a claim. If they approve the claim, you’ll pay a deductible, which is the amount you agreed to chip in from your own pocket when you make a claim. After that, your insurance company takes care of the rest of the expenses. The coverage limits for comprehensive insurance are usually based on how much your car was worth at the time of the incident, not how much you paid for it.

Let’s say your car got damaged in a windstorm, and the repair cost is $5,000. If you have a comprehensive policy with a $500 deductible, you’d pay $500 for the repairs. As long as your car’s value is more than the repair cost, your insurance will cover the remaining $4,500. However, if your car’s value is less than the repair cost, your insurer will likely pay you the actual value of the car.

What does comprehensive insurance cover?

Comprehensive insurance is like a shield for your car, protecting it from unexpected harm that doesn’t involve crashing into something. Here are the situations it helps you out with:

  • Theft: If someone takes your car without permission.
  • Vandalism, fire, and explosions: In case someone intentionally damages your car or if it catches fire or explodes.
  • Windshield and glass damage: When your car’s windows or windshield get cracked or shattered.
  • Falling trees/limbs and other objects: If a tree or something else falls on your car.
  • Rocks/objects kicked up by or falling off cars: Imagine a rock hitting your car or something falling off another vehicle; comprehensive insurance has got your back.
  • Storms, hail, wind, floods, lightning, and earthquakes: From bad weather like storms, hail, or floods to lightning and earthquakes, comprehensive insurance handles the damage.
  • Accidents with animals (e.g., hitting a deer): If you accidentally collide with an animal, like a deer, comprehensive insurance steps in to cover the repairs.

When can I include comprehensive coverage in my insurance?

You can usually add comprehensive coverage whenever you want for these types of insurance:

  • Car insurance
  • Classic car insurance
  • Motorcycle insurance
  • RV insurance
  • Boat insurance

You might also be able to get comprehensive coverage for ATV insurance, golf cart insurance, snowmobile insurance, and other kinds of vehicles.

Do I have to get comprehensive insurance?

No, you’re not legally required to have comprehensive insurance for your car in any state. However, if you’re leasing or financing your vehicle, the folks lending you the money might ask you to have it. If you own your car outright, it’s up to you to decide if you want comprehensive coverage or not.

Is comprehensive insurance a good idea?

If your leasing or financing company isn’t making you get comprehensive coverage, it boils down to a few things. Think about how much your car is worth, what you’re comfortable with, and your money situation.

If your car isn’t worth much and you have a high deductible (that’s the amount you pay if something happens), you might decide not to get comprehensive coverage. On the flip side, if your car is worth a lot, or you can’t afford to fix or replace it yourself, then getting comprehensive coverage might be a good idea. If you like the idea of being covered for unexpected events, then having comprehensive insurance can give you peace of mind when you’re out on the road.

What's the difference between comprehensive and collision insurance?

Comprehensive and collision insurance are two types of coverage for your car, but they kick in for different situations. They’re like your car’s special protectors, each with its own powers. Comprehensive insurance swoops in when unexpected events, like theft, vandalism, hitting an animal, glass breaking, fire, or crazy weather (like hail), cause damage to your car.

On the other hand, collision coverage comes to the rescue when your car gets damaged from hitting another vehicle or object, no matter whose fault it is. It’s like having a shield to protect your car in case of a collision. If you want to know more about these special coverages, keep reading!

What is a comprehensive deductible?

Think of a deductible as your car’s trusty companion, helping you determine how much you’re willing to pitch in if there’s an accident. The deductible is like a little financial sidekick that you choose – the more risk you’re willing to take (higher deductible), the lower your insurance costs will be. But if you prefer less risk (lower deductible), your insurance costs will be a bit higher.

Let’s say a hailstorm wreaks havoc on your ride, causing $1,000 in damage. If you have a $100 deductible on your comprehensive coverage, you’ll be the hero who pays the first $100, and then your insurance company will come to the rescue, covering the remaining $900 for the repairs. If your car is on the older side, you might want to consider if comprehensive coverage is still the right fit for you, as it’s usually limited to your car’s current cash value. Keep in mind these deductibles are like your car’s trusty sidekick – choose wisely!

Why consider comprehensive coverage?

Think about these things when deciding if it’s worth not having this coverage. Ask yourself if the money you save is enough to cover the risk of having to pay for all the repairs or a new car if something happens.

  • Is your car worth a lot of money?
  • Do you live in a place where bad weather happens a lot?
  • Is car theft common in your area?
  • How much money can you afford to pay if you have an accident that isn’t covered by collision insurance?

To help you decide if you should get comprehensive coverage, use online tools like Kelley Blue Book to estimate how much your car is worth. You can also talk to a atoz insurances agent to figure out your car’s value and how much it would cost to add comprehensive coverage.

About the Author

Alex Huber is a content writer for Atoz Insurances and he is a very experienced and well-rounded freelance content writer who specializes in the insurance and finance niches. His writing is engaging and informative, and he has a strong understanding of the industries he writes about.

75% Off !

(888) 238-4419