Comprehensive car insurance is a type of auto insurance that can ease the financial strain of repairing or replacing a stolen or damaged vehicle. It’s part of a standard physical damage insurance policy. States don’t require comprehensive vehicle insurance by law—but a lender or lessor may require it to protect their investment in your vehicle until your loan is paid off or your lease has ended.
You may also consider comprehensive coverage if you live in an area prone to theft, or inclement weather that could damage your vehicle—or if replacing your vehicle after a total loss would be a significant financial burden. For professionals focused on strategically leveraging every cent of their personal finances, this may be a wise investment. Here’s what you need to know about comprehensive car insurance.
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What is comprehensive car insurance?
Comprehensive car insurance covers damage to your vehicle caused by sudden external forces. It’s sometimes called “other than collision” coverage because it covers most sources of damage to your car besides car accidents. Comprehensive car insurance coverage is not required by law in any state, but you’ll most likely need it to finance or lease a vehicle.
What does comprehensive car insurance cover?
A comprehensive auto policy can cover several different causes of damage to your car, including the following:
- Falling objects, such as tree branches, ice shards, rocks, and asteroids
- Projectiles
- Fire
- Theft of the whole car or its individual parts
- Explosions
- Natural disasters, such as earthquakes, windstorms, and volcanic eruptions
- Hail
- Flooding and other types of sudden water damage
- Vandalism or malicious mischief
- Riot or civil commotion
- Animal strikes
- Sudden glass breakage
What doesn’t comprehensive car insurance cover?
Comprehensive car insurance excludes coverage for all losses related to car accidents, such as car repairs or medical expenses for yourself or others. And because insurance generally serves the purpose of protecting against sudden and unexpected damage, comprehensive coverage doesn’t cover gradual wear and tear to your car’s parts, like belts, hoses, brakes, tires, and windshield wipers.
How comprehensive insurance deductibles work
Your comprehensive insurance deductible is simply the amount you must contribute out-of-pocket before your coverage will kick in to cover a claim.
For example, if your car experiences $2,000 worth of covered storm damage and you have a $500 deductible, you’d be responsible for covering $500 of your own expenses, and your comprehensive insurance would cover the remaining $1,500. Comprehensive deductibles typically range from $250 to $1,000.
Keep in mind that the coverage limit for your comprehensive car insurance is generally set at the actual cash value of your vehicle. ACV refers to the current market value of a car when considering depreciation factors, such as wear and tear, age, or mileage. For example, if you have a $1,000 deductible and your car is worth $7,000, then the maximum amount your comprehensive insurance will pay out after a total loss is $6,000.
Insurance companies generally offer lower premiums to policyholders with higher deductibles, since you’re agreeing to cover a greater portion of your own costs out of pocket when filing a claim. This can make a high deductible look like the frugal option—but make sure you have a large enough emergency fund to cover that deductible in case you need to file a claim.
How much does comprehensive car insurance cost?
As of the latest data (which is gathered from 2023), the average annual cost of comprehensive auto insurance throughout the United States is about $238.24. The exact price of your comprehensive car insurance policy may depend on factors such as:
- Where you live, including the prevalence of natural disasters, theft, and other covered losses in your area
- The type of car you drive, including how durable it is, how likely it is to be stolen, and how much it is worth
- Information from your credit report
- Your policy details, including the deductible you select
Comprehensive car insurance vs. collision insurance
While comprehensive insurance covers damage from external sources unrelated to crashes, collision insurance covers damage to your vehicle from car accidents, collisions with objects, and single-car rollovers. Collision and comprehensive insurance are often sold alongside each other because lenders and lessors usually require both types of physical damage coverage. Also, both coverages are typically included in a full coverage car insurance policy.
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Comprehensive car insurance at a glance
- Comprehensive car insurance is an optional car insurance coverage type that covers sudden damage to your vehicle caused by unexpected external events.
- A comprehensive insurance policy covers most sources of damage to vehicles other than collisions—including fires, theft, storms, falling objects, vandalism, explosions, and animals.
- Your comprehensive insurance won’t cover wear and tear or any losses related to a car accident (think property repairs or medical expenses).
- Whenever you file a claim on your comprehensive insurance, you must pay a deductible.
- If your car is totaled by a covered event, your comprehensive insurance provider will generally pay out the car’s actual cash value after factoring its age, mileage, and other depreciation factors.
- Premiums for comprehensive coverage average around $20 per month, depending on factors like your location, the type of car you drive, and your coverage details.
- While physical damage coverage is legally optional, it is typically required if you want to get a loan or lease for a vehicle.
How to save money on comprehensive car insurance
To lower the cost of your comprehensive insurance, you’ve got several options:
- Compare quotes from multiple insurers before you purchase coverage; rates and underwriting standards can vary by company.
- Choose a higher deductible—if you’re confident you can afford a larger deductible when filing a claim.
- Park your vehicle in a secure location, such as a locked garage, to reduce the risk of theft, vandalism, and weather-related damage.
- Ask about discounts that might apply to your policy.
If you do nothing else, make the effort to compare several quotes and balance your premium savings against the deductible you’d need to pay if you file a claim.
The takeaway
Comprehensive car insurance is an optional coverage that can go a long way to helping you pay for car repairs—or even a full replacement—if it’s damaged by a non-collision event. Things like fire, theft, severe weather, a deer in the middle of the road, and falling objects are covered by comprehensive car insurance.
Again, comprehensive car insurance isn’t required by law—but whether it’s mandatory or not depends on your unique situation. An auto loan may demand that you have comprehensive coverage until you pay it off. But once your car’s value drops below 10x its value, it’s financially prudent to drop it.
Frequently asked questions
Is comprehensive car insurance the same as full coverage?
Comprehensive car insurance is not the same as full coverage, though it is typically included within full coverage. Comprehensive coverage refers to a type of auto insurance that covers damage to your car from fire, theft, and other outside sources—while full coverage insurance generally refers to a policy that bundles comprehensive and collision coverage with liability insurance and any other coverage types that are required by law in your state.
Should you get comprehensive car insurance if you have an older car?
You may not want comprehensive coverage if you have an older car. In general, it’s recommended that you remove comprehensive and collision insurance from your policy if the value of your car drops below 10 times the amount you have to pay for coverage.
Are catalytic converters covered by comprehensive car insurance?
Yes, comprehensive vehicle insurance covers catalytic converter theft. However, damage to your catalytic converter caused by a car accident would instead be covered by collision insurance.
Will a comprehensive claim increase your insurance rates?
Your rates may go up after filing a claim on your comprehensive coverage, but this varies. Some states do not allow insurers to raise car insurance rates for not-at-fault claims, which would apply to most types of comprehensive insurance claims.
Does comprehensive car insurance cover windshield replacement?
Yes, comprehensive car insurance can cover windshield replacement after your windshield is damaged by a covered peril. Depending on where you live, you may not even have to pay a deductible.
Is comprehensive car insurance required?
Comprehensive auto coverage is not required by law, but it is often required by lenders and lessors.