Comprehensive insurance is an optional coverage that assists with payments to repair or replace your vehicle in incidents of theft or non-collision damage
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Comprehensive insurance is an optional coverage that assists with payments to repair or replace your vehicle in incidents of theft or non-collision damage
Discover if you are overpaying for car insurance below
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Comprehensive insurance helps cover your vehicle from random events outside of your control. In this article, we at the MarketWatch Guides team will explain what is and isn’t covered by comprehensive insurance.
We’ll also review the average costs and help you decide if this type of auto insurance policy is a good idea for you. If you’re ready to start comparing insurers, check out our review of the best car insurance and cheapest car insurance companies.
Key Takeaways:
There are many common terms associated with comprehensive coverage that you may see as you’re shopping for car insurance. They include the following:
Actual cash value | This term refers to the market value of your car in its current condition before any damage occurs. |
Collision insurance | This coverage pays for car repairs or replacements after traffic-related accidents. Most insurers require you to purchase comprehensive and collision coverage together. |
Deductible | This refers to the amount you pay before your car insurance company will cover the rest of your repair or replacement costs. The higher the deductible you have, the lower your car insurance costs will be. However, you’ll pay more out of pocket if you file a claim. |
Full coverage insurance | This type of car insurance policy typically includes a combination of comprehensive, collision and liability car insurance. However, other state-mandated coverage types may be included in a full coverage policy. |
Comprehensive insurance covers the maximum amount based on the actual cash value (ACV) of your vehicle minus your chosen deductible. While collision coverage pays for repairs to your vehicle after a car accident, comprehensive insurance generally protects your vehicle while it is parked. It also fills in some of the gaps in the typical collision insurance policy, such as if you hit an animal while driving.
Examples of damages to your car that are covered by a comprehensive insurance policy include:
A comprehensive claim will pay out a maximum amount based on the actual cash value (ACV) of your vehicle, minus your chosen deductible.
Despite the name, there are some exclusions to comprehensive coverage. Comprehensive insurance does not cover damage to another person’s property, any medical expenses or the value of items stolen from your car.
Damage that is covered by collision insurance is not covered by comprehensive insurance. This includes:
The difference between full coverage and comprehensive insurance is that a full-coverage insurance policy includes liability, comprehensive and collision coverage. Comprehensive insurance covers damage to a car from things other than road accidents.
It’s typically recommended that drivers carry full-coverage car insurance. This is a portfolio of car insurance coverage that protects your vehicle in almost every scenario. In addition to comprehensive and collision insurance, full coverage policies generally include the following types of coverage:
Even if you are not required to purchase comprehensive insurance, it may be a good idea to add it to your car insurance policy, especially if you have a new car or the value of your vehicle is high. Remember, comprehensive and collision insurance don’t just protect the value of your car — they also bring you peace of mind knowing that you’re completely covered.
Comprehensive insurance is not required by state law. However, if you lease or finance your vehicle, your lender may require that you purchase a comprehensive policy until the end of your lease or until your vehicle is paid off.
Comprehensive insurance works similarly to other types of car insurance coverage when filing a claim. If you find yourself in a situation where your car was crushed by a tree or damaged by hail, here’s how your comprehensive car insurance would work:
Keep in mind that anytime you file an insurance claim, your renewal rates may go up. We recommend that you shop around for car insurance and compare car insurance quotes regularly to ensure you’re getting the lowest rates and best coverage possible.
According to the most recent data collected by the National Association of Insurance Commissioners (NAIC), the average annual comprehensive insurance premium for drivers in the U.S. in 2019 was $171.87. Comprehensive insurance from California was the least expensive, with an average of just $96.53. In the most expensive state, South Dakota, the average was $347.61.
Your comprehensive deductible is how much you pay out of pocket after a claim is approved to repair or replace your vehicle. Thus, up to the cash value of your vehicle, the remaining expenses are covered by the insurance company after the deductible is paid.
You can raise your deductible with your insurer, causing your insurance premium to go down. But you’ll have higher out-of-pocket costs if your vehicle is damaged.
Most drivers will need to pay a deductible for comprehensive car insurance or a predetermined amount that is subtracted from a claim check — typically $500 to $1,500.
Say your car was hit by a severe hailstorm, causing $2,000 worth of damage to your vehicle’s roof. If you had a $500 deductible and filed a comprehensive claim with your insurance company, your insurer would pay out $1,000 to repair your car.
To determine if a comprehensive policy is a good idea for you, start by calculating what your car is worth and subtract the amount of your deductible — this is the most value you can expect to get from your policy should the worst occur. Compare this number with the cost of your insurance payments to decide how much car insurance you need.
If you’re looking for a comprehensive insurance policy, it’s a good idea to shop around and compare providers. We recommend reaching out to several of the best car insurance companies to get a quote for comprehensive coverage.
When you speak with an agent for a quote, your estimate for a comprehensive insurance policy will vary depending on a number of factors. These include:
Comprehensive insurance coverage is similar to bad luck coverage for your vehicle. It will cover any damage sustained from theft, natural disasters or vandalism. Further, comprehensive coverage can be purchased as part of a full–coverage car insurance policy to protect both you and your vehicle in the event of an accident or bad luck.
We recommend reaching out to several of the best car insurance companies to get a quote for comprehensive coverage.
Because rates are based on your unique driver profile, the best insurer for your neighbor may not be the best option for you. You can start comparing free car insurance quotes using the tool below. Be sure to consider policies with two of our top-rated providers: USAA and State Farm.
State Farm can be a good option for students because of its many discounts for young drivers. The company’s Drive Safe & SaveTM tracks driving behaviors through a mobile app, helping drivers earn up to a 30% discount on their premiums. State Farm’s Steer Clear®
is designed for teen drivers that provides course training and driving practice for teen drivers. Completion of the program provides a discount.
In an August 2022 consumer survey, we polled nearly 7,000 car insurance customers on their experiences with their auto insurers. Of the 19% of respondents that had a State Farm policy, the majority were generally happy with the company:
Keep reading: State Farm insurance review
Compare: State Farm vs. Geico, State Farm vs. USAA
USAA has a positive reputation in the insurance industry, known for offering top-notch customer service and some of the cheapest car insurance rates in the country. The only major drawback of USAA is that you must be a former or current member of the military to qualify for coverage, or be the spouse or child of one who holds a policy with USAA.
In addition to standard auto insurance policies, USAA offers glass coverage, guaranteed asset protection coverage, car replacement assistance (CRA) and rideshare insurance. Drivers can also use USAA SafePilot to save on insurance rates.
In our August 2022 car insurance survey, we found that over half of USAA policyholders were satisfied with their car insurance, giving the company four stars or above:
Keep reading: USAA insurance review
Compare: USAA vs. Progressive
Below are frequently asked questions on comprehensive auto insurance.
Comprehensive coverage helps pay to repair or replace your car if it’s stolen or damaged in an event that is not a collision. This insurance type typically covers damage from fires, animals, fallen objects, vandalism or weather-related events (like hail or floods).
If you want to have peace of mind on the road, comprehensive coverage can be worth it as it will help to repair or replace your vehicle when damage is sustained from events other than an auto accident. It can be worth it if you live in an area that’s prone to higher rates of car theft or vandalism, or natural disasters like tornadoes or severe weather.
Comprehensive car insurance helps cover losses like theft, vandalism, hail or hitting an animal. For example, if your vehicle sustains damage during a hail storm, your comprehensive coverage will help pay for damages if you file a claim.
Comprehensive coverage helps cover the cost of damages to your vehicle when you’re involved in an accident or incident that’s not caused by an auto or road collision.
If you need to choose between the two, it’s better to have comprehensive insurance over collision insurance. Comprehensive coverage is relatively inexpensive and can be purchased alone. It also pays for damages due to events beyond your control.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
Our credentials:
*Data accurate at time of publication.
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