Comprehensive Coverage (Other than Collision Coverage)
What Is Comprehensive Coverage?
Comprehensive Coverage helps protect your vehicle from damages that occur in an event other than a collision (that is why this coverage is also sometimes referred to as “Other than Collision Coverage”). If your car is stolen, vandalized, or damaged by a natural disaster, contact with an animal, or by any other covered incident, your comprehensive insurance coverage will help pay for repairs or replacement.
Watch how Joe's Comprehensive Coverage came in handy when a tree branch fell on top of his car, cracking the windshield and denting the hood.
Do I Need Comprehensive Coverage?
Comprehensive Coverage can be valuable for many drivers; however, it is not a type of state-required car insurance coverage. With that said, Comprehensive Coverage may be required if your vehicle is leased or financed. Under certain auto insurance policies, purchasing Comprehensive Coverage may even be required in order for you to be eligible to purchase rental reimbursement coverage. (Rental reimbursement helps cover the costs associated with car rental if your vehicle can’t be driven due to a covered accident.)
If you aren’t required to have Comprehensive Coverage but are considering how it may be beneficial to you, here are a few things to consider:
- Your personal finances: Could you afford to repair your vehicle out-of-pocket if an accident were to occur?
- The age and value of your car: As your car ages, its value will decrease. The newer the car, the more expensive it could be to repair or replace.
With an older or less expensive car, you may feel confident in your ability to pay for repairs or total vehicle replacement. If your car is newer or you don’t feel like you would have the money on hand to pay for unexpected repairs, Comprehensive Coverage could be a smart investment. Your personal finances would also influence whether or not you choose a deductible, and if so, how high of a deductible. Remember, a higher deductible results in a lower premium.
What Does Comprehensive Insurance Cover?
Potential real-life scenario: You're driving home late one night and out of nowhere a deer runs across the street. Try as you might you can’t avoid contact with the animal and your car collides with it. Once you pull over to the shoulder of the road, you get out of your car and find that the animal has vanished into the night, leaving only a crushed fender in its place. With comprehensive coverage, your fender will be replaced upon payment of your deductible, so long as the cost of the repairs doesn’t exceed your vehicle's actual cash value.
Comprehensive Coverage may also pay for damage to your vehicle caused by:
- A fallen tree branch
- Theft or vandalism
- Weather conditions or natural disasters (like hail, floods, and lightning)
- Contact with birds, deer, or other animals.
What Is a Comprehensive Deductible?
Like Collision Coverage, Comprehensive Coverage often includes deductible options. A deductible is the amount you would pay up front for the damage to your car. Usually, the higher the deductible you choose, the lower your premium will be for Comprehensive Coverage. After you pay your deductible, the cost of any remaining damage will typically be covered up to the actual cash value (ACV) of your vehicle. ACV takes into account the price of your car when you purchased it, as well as the age and condition it’s in at the time of the accident.
Comprehensive Coverage & Commercial Auto Insurance
Comprehensive Coverage is just one of many affordable insurance coverage options Direct offers for commercial auto insurance policies. If you use your vehicle or truck to do activities related to your occupation or business (other than commuting), you’ll want to talk to your insurance agent about a commercial auto insurance policy.
Like Comprehensive Coverage on your personal auto policy, Comprehensive Coverage on commercial auto insurance policies helps pay to repair damage related to vandalism, theft, falling debris, and so much more.
Note that not all commercial vehicles, like heavy trucks, are eligible for Comprehensive Coverage. Instead, these vehicles would be eligible for a special type of Comprehensive Coverage called Fire and Theft with Combined Additional Coverage (CAC).
More on Comprehensive Insurance Coverage
The information provided herein is designed to give helpful advice on the topic discussed. It is not intended to provide legal or any other type of advice and is not meant to be a thorough discussion of every issue that a person should consider or may encounter. We are not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services or other materials on or available through these websites or resources or your reliance thereon. Any references to third party rates or products are subject to change without notice. Insurance coverages are subject to policy terms and conditions.