Comprehensive car insurance provides financial protection if your car is stolen or damaged in an incident other than a collision. Comprehensive insurance, often called "comp coverage," is auto insurance that typically covers theft, fire, or falling tree limbs that damage your vehicle.
Learn more about comprehensive insurance and how it's different from collision and liability insurance coverages, how it works, deductibles and limits, and more.
What does Comprehensive Insurance Cover?
Some of the comprehensive insurance coverage provided Includes:
Natural disasters (hurricanes, tornados, and floods)
Vandalism, fires, and explosions
Falling objects (hail or tree branches)
Accidents with animals
Civil disturbances
Windshield or glass damage
What Damage is Not Covered by Comprehensive Insurance?
Medical Costs: Injuries resulting from any scenario covered by comprehensive coverage. Instead, these costs are covered by another optional add-on to your policy: medical payments coverage or personal injury protection insurance coverage, which would cover medical expenses.
Legal expenses: any legal fees, such as court fees, will also not be covered by comprehensive coverage.
Towing fees: If your car breaks down and needs towing, comprehensive coverage will not cover these fees. Instead, policy add-ons such as roadside assistance would be beneficial in this situation.
Stolen Items: If items get stolen from your car, comprehensive coverage will cover the damage. However, the items stolen will not be covered. Similarly to medical expenses, other policy options are available to cover these losses.
Comprehensive Coverage Deductibles and Limits
When shopping around for comprehensive coverage for your vehicle, you should first consider what your deductible better suits your budget.
In vehicle insurance, a deductible is the amount you are responsible for paying out of pocket toward a covered claim. For example, if you have a $500 deductible and $2,000 worth of damages to your vehicle, you would be responsible for paying the first $500 before your insurance company covers the rest up to your coverage limit.
Insurance premiums can also vary depending on your driving record and the car's model and year.
Like any other policy, comprehensive coverage has a limit or a maximum amount your auto insurance company will pay towards a covered claim. This limit is usually the total value of the vehicle.
If your car is stolen, the vehicle insurance will cover it, and the car insurance will reimburse you for your far-depreciated value minus your deductible. Remember that a comprehensive deductible and coverage limit pay for comprehensive insurance claims and differ from your collision deductible and limit.
What's the Difference Between Collision and Comprehensive Insurance?
Comprehensive auto insurance will only cover vehicle damages caused by theft, vandalism, a natural event, or falling objects. Collision insurance helps you cover the costs of parts, vehicle repair, or a replacement vehicle in case of damage caused by another car or object.
This type of insurance is typically an add-on to your insurance policy if you own your car without a loan. The lender might require comprehensive or collision coverages if your vehicle is leased or financed.
Collision insurance can also cover car damage if it flips over or hits a stationary object like a heavy telephone pole or guard rails.
Similarly, collision insurance has its deductible and limits for collision claims. The higher your deductible, the lower your monthly insurance premium, and vice versa.
Is Comprehensive the Same as Full Coverage?
Full-coverage car insurance is a term lenders use when describing the requirements for an auto insurance policy. It refers to comprehensive and collision car insurance plus state-mandated policy requirements, such as liability insurance. Most insurance providers do not offer anything named "full coverage."
How Much Does Comprehensive Coverage Cost?
Comprehensive coverage can cost a whole lot more or less depending on who your insurance carrier is and which state you live in. State Farm tends to cost around $168 on average per year, which is a pretty standard rate. Progressive costs about $186 a year and GEICO's average is $152 a year. -That's the average cost of comprehensive coverage on a 2020 Honda Civic with a $500 deductible.
You can see big variations in the cost of comprehensive coverage across different states. Illinois drivers pay about $147 a year on average while Texans pay $192 and Californians pay $206 a year for comprehensive coverage. The highest comprehensive rates are actually found in Florida and Louisiana where drivers pay around $245-$268 a year. That’s because those states are at high risk for hurricanes. Meanwhile, drivers in Nevada actually pay some of the lowest comprehensive rates at around $134 a year.
The deductible you choose has a pretty big impact on the cost of your premiums.If you choose a $250 deductible from a big insurance carrier like Allstate, Nationwide and Farmers, your rates are usually $30-$50 more per year compared to choosing a $500 deductible.
If you choose a higher deductible of $1,000, it tends to lower your premiums by around $75-$100 compared to a $500 deductible option. You also have to consider the vehicle age and the declared value. These two things determine the absolute max that your insurance will pay out in the event of a claim. A brand new 2024 model, can end up being 40-60% more expensive to insure comprehensively compared to a 2015 model of the same make.
The smartest way to find the cheapest car insurance that fits you and your driving records is to get a free quote from Insurance Navy. Insurance Navy will get you protected and back on the road. Call us at 888-949-6289 or request a quote online. You are also welcome to speak with an agent at our locations.
