Standard collision insurance may help pay to repair your vehicle after an auto accident, but what if your car is damaged in an incident other than a collision?
Comprehensive car insurance is a coverage that is designed to protect you and your vehicle from hazards like fire, falling objects, vandalism, and other events that may cause damage to your vehicle. If you are leasing or financing your vehicle, your lender will likely require you to purchase this coverage to protect your vehicle for the term of your loan.
We’re here to tell you everything you need to know to help you better understand what comprehensive car insurance is and what it covers.
What is Comprehensive Insurance?
Also known as “other than collision” coverage, comprehensive insurance helps you pay for damages that are caused by something other than a collision. For example, if hail damages your vehicle, collision coverage would not pay for the damages. Instead, you would need comprehensive coverage to help pay for repairs.
For vehicle owners, comprehensive insurance is an optional coverage that you can choose to add on top of your existing auto coverages. However, if you are leasing or financing your car, you may be required by your lender to purchase comprehensive coverage.
Comprehensive vs. collision insurance
Collision insurance only covers accidents that involve you colliding with something else. For example, collision insurance would cover damages that result from you being involved in a fender bender or backing your car into a pole. It would not cover other events outside of your control, such as a tree branch falling onto your vehicle.
What Does it Cover?
Comprehensive car insurance can help pay for damages caused by:
- Hail and thunderstorms
- Civil disturbances (e.g. riots)
- Windshield and glass damage
- Falling objects (e.g. tree limbs)
- Natural disasters (e.g. hurricanes or tornadoes)
- Accidents that involve hitting an animal
If your vehicle is damaged due to a covered incident, comprehensive coverage will typically pay up to the total value of your car minus your deductible.
What’s not covered?
Comprehensive insurance typically does not cover:
- Medical expenses
- Lost income
- Legal expenses
- Stolen property
Be sure to review your policy to understand what is and is not covered by your auto insurance.
Comprehensive car insurance typically requires you to pay a deductible before your coverage kicks in. After paying your deductible, your insurance policy will cover the remaining damages up to your coverage limit for covered incidents. Deductibles for comprehensive car insurance are usually between $500 to $1,500.
For example, say your car is damaged by a falling tree branch and it will cost $2,000 to repair the damages. If you have a $500 deductible, your comprehensive insurance policy will cover the remaining $1,500 after you pay the deductible.
When you purchase your comprehensive insurance policy, you’ll be able to choose your deductible. Policies with higher deductibles typically carry lower monthly premiums, while policies with lower deductibles usually have higher premiums.
How Much Does Comprehensive Car Insurance Cost?
Comprehensive car insurance isn’t available to be purchased as a standalone policy, and it often cannot be purchased without also purchasing collision coverage. As such, the cost of your comprehensive insurance policy will also depend on your other coverages.
With that in mind, there are several factors that may impact your comprehensive coverage cost:
- Driving record
- Claims history
- Car model
- Car age
While choosing a high deductible may reduce your monthly premiums, it also means you’ll have to pay more out of pocket if you are involved in an accident.
Should You Purchase Comprehensive Insurance?
Comprehensive insurance offers valuable coverage for vehicle owners as it protects them against hazards not covered by their existing auto coverages. But it’s important to keep in mind that comprehensive insurance becomes less valuable as your vehicle depreciates in value.
As comprehensive coverage only pays up to your vehicle’s value minus your deductible, it may not be worth purchasing this coverage if your deductible plus the premiums for your policy period cost more than our vehicle is worth.
In many cases, it is worth purchasing comprehensive coverage for your new vehicle and dropping the coverage down the line as your car ages and becomes less valuable.
Request a Quote
Comprehensive car insurance is often required by auto lenders and offers invaluable protection against hazards like vandalism, fires, natural disasters, and more.
At KSA Insurance, we work with residents in South Carolina and across the southeastern United States to help them find affordable comprehensive car insurance policies that protect their vehicles against a variety of common risks.
Contact us today to request a quote and learn more about comprehensive car insurance.