Comprehensive insurance is a type of car coverage that helps pay for the replacement or repair of your vehicle in the event of theft or damage caused by something other than a collision. This could include damage caused by fire, vandalism, falling objects (such as a tree or hail), and more. It's essential to understand what comprehensive insurance covers and how it differs from collision coverage, so you can make an informed decision about the type of coverage that is right for you. If you're driving an older car, it's important to do the math to see if buying collision coverage or comprehensive coverage makes economic sense. Collision coverage protects your car against damage caused by the impact of another vehicle or object, regardless of fault.
If your vehicle is old and paid for, you may be able to save money by not buying comprehensive coverage, particularly if theft and weather-related events are not a cause for concern in your area. 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. Like other forms of car insurance, comprehensive coverage covers part of the loss if your car is damaged. You can add this optional coverage to almost any type of vehicle insurance, such as car, motorcycle, boat and more. If the cash value of your vehicle is relatively low and you have a higher deductible, for example, comprehensive coverage may not be worth it. When combined with collision insurance, these two types of insurance cover most incidents that could damage your car, hence the “full coverage” designation.
While both protect your vehicle, collision coverage exists if you're involved in a collision, while comprehensive coverage is for non-collision events that are beyond your control. Comprehensive coverage can protect you against minor and major damage caused by things beyond your control, regardless of the coverage you have that extends to accidents. Similarly, a driver who uses their car infrequently could risk losing full coverage, since they are statistically less likely to damage their vehicle. Comprehensive coverage isn't required by law in any state, but lenders often require it if you're leasing or financing your vehicle. 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. It's important to understand what comprehensive insurance covers and how it differs from collision coverage so that you can make an informed decision about what type of policy is right for you.
Comprehensive insurance can help protect your vehicle from theft and damage caused by events beyond your control such as fire, vandalism, falling objects (such as a tree or hail), and more. It's also important to do the math to see if buying collision coverage or comprehensive coverage makes economic sense depending on the age and value of your car. Full coverage is a general term used more by consumers than by car insurance companies. It usually refers to two types of policies: collision and comprehensive insurance. While both protect your vehicle from damage, collision covers incidents involving another vehicle or object while comprehensive covers non-collision events beyond your control.
It's also important to note that full coverage does not include reimbursement for rental cars while yours is being repaired or replaced.
