What is the Difference Between Full Coverage and Comprehensive Car Insurance?

Full coverage is an auto insurance policy that includes both comprehensive and collision insurance, as well as any other type of coverage required by your state.

Comprehensive insurance

covers damage to a car caused by causes other than accidents, such as theft or fire. Collision insurance helps pay for damage to your vehicle after you hit another car or object, while comprehensive insurance policy is a type of standalone coverage that protects your car from things like falling objects, theft and vandalism. Comprehensive car insurance reimburses you for repairing or replacing your car after non-traffic-related causes, such as fire, vandalism, or hitting a deer. It may also be worth taking out comprehensive insurance policy if the policyholder cannot afford to replace the vehicle without comprehensive coverage, or if the car is being driven or parked in a particularly risky area. If your car is leased or financed, your lender or landlord will likely require you to take out comprehensive insurance and collision insurance together. A general rule of thumb is that if the cost of comprehensive and collision insurance exceeds 10% of the value of your car, you can consider eliminating them.

Comprehensive insurance mainly covers events beyond the driver's control or incidents that occur when a car is parked.

Collision coverage

repairs or replaces your car when it's damaged in an accident, regardless of fault, while comprehensive insurance applies when the car is damaged by something other than an accident. Full coverage is a general term for a few different types of car insurance policies and is a phrase used more by consumers than by car insurance companies. Things like reimbursement for the rental of the vehicle while yours is being repaired or replaced are offered separately and are generally not included in the term full coverage. Since each state has different car insurance requirements, total coverage can also include several other types of coverage. Collision insurance and comprehensive insurance are often combined to protect a vehicle against most types of damage, as part of full-coverage car insurance.

While comprehensive insurance isn't required in any state, dealers and lenders often require comprehensive insurance, along with collision coverage, for leased or financed cars. No type of car insurance will cover the theft of your personal items from your vehicle. When it comes to choosing between full coverage and comprehensive car insurance, it's important to understand what each type of policy covers. Comprehensive coverage provides protection against non-accident related damages such as theft and vandalism, while full coverage includes both collision and comprehensive policies. It's important to consider the value of your vehicle when deciding which type of policy to purchase.

If the cost of comprehensive and collision coverage exceeds 10% of the value of your car, you may want to consider eliminating them.

Gertraude Jackel
Gertraude Jackel

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