What is Comprehensive Insurance and Do I Need It?

This Article is about Comprehensive Insurance, here you will get an idea of comprehensive insurance, the main key to knowing about comprehensive insurance, what it covers and what it doesn't cover, optional vs. mandatory, and cost. Everything you are going to know clearly.

What is comprehensive insurance?

Comprehensive insurance, also known as "other than collision" coverage, is a type of auto insurance that protects your car from damage caused by events other than collisions. While collision insurance covers repairs if you hit another vehicle or object, comprehensive steps in when something else is to blame.

Key things to know about comprehensive insurance

Here are some key things to know about comprehensive insurance:

What it covers

• Theft: If your car is stolen, comprehensive insurance will help pay to replace it or reimburse you for its value.

• Vandalism: Damage caused by someone intentionally harming your car, like scratches, broken windows, or spray paint, is typically covered.

• Weather events: Damage from hail, storms, floods, lightning, earthquakes, and even falling objects like tree branches are often covered.

• Animal collisions: Hitting a deer or other animal with your car is usually covered under comprehensive insurance.

• Fire: Damage caused by fire, regardless of the cause, is typically covered.

• Glass breakage: While some policies may have separate glass coverage, comprehensive insurance often covers broken windows and sunroofs.

What it doesn't cover

• Collision damage: If you hit another car or object, comprehensive insurance will not cover the damage to your vehicle. You would need collision coverage for that.

• Mechanical breakdowns: Comprehensive insurance does not cover mechanical breakdowns or wear and tear on your vehicle.

• Personal belongings: If your personal belongings are stolen from your car, comprehensive insurance will not cover them. You would need separate insurance for that.

Optional vs. Mandatory

• Comprehensive insurance is optional unless you lease or finance your car. In that case, the lender will likely require you to have it along with collision coverage.

• Even if it's not mandatory, consider your car's value and your financial situation. If your car is newer or valuable, or if you couldn't afford to replace it yourself if something happened, comprehensive coverage might be worth it.

Cost

• The cost of comprehensive insurance varies depending on several factors, including your car's make, model, and year, your driving history, your location, and your deductible (the amount you pay out of pocket before insurance kicks in).

• You can usually lower your premium by raising your deductible, but make sure you choose an amount you can comfortably afford to pay in case of a claim.