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Comprehensive Insurance

Comprehensive Insurance

Comprehensive insurance is one of three insurance coverages, along with collision insurance and fire and theft with combined additional coverage (CAC) insurance, that make up the physical damage insurance package.

Comprehensive insurance provides protection for your vehicle in case it is damaged by something other than a collision with another vehicle or object. Comprehensive insurance pays to repair or replace your vehicle in case of:

  • Fire
  • Theft
  • Vandalism
  • Windstorm
  • Collision with an animal
  • Glass breaking
  • And much more

Who Needs Comprehensive Insurance?

If you want to protect your vehicle, then you should choose comprehensive insurance. Comprehensive insurance protects your vehicle from almost everything except a collision. (To protect your vehicle, you must purchase collision coverage).

If your vehicle is leased, or if you have a loan on your vehicle, then you probably are required to have comprehensive insurance. If your vehicle is fully paid for, this insurance is optional.

Comprehensive Insurance Deductibles and Other Details

For comprehensive insurance you must pick a deductible which is the amount that you agree to pay out of pocket when you have a claim.

Choosing a higher deductible is an easy way to lower your insurance premium. Be sure you choose a deductible that you can afford to pay out of pocket at any time.

When you select comprehensive insurance, you also are required to submit a stated amount, which is your best estimate of the current value of your vehicle. The stated amount should take the age and condition of your vehicle into account, as well as any permanently attached equipment.

Learn more about stated amount and how to calculate it for your vehicle.

Comprehensive Insurance Example

You leave your house one morning and realize that your vehicle has been stolen.

Because the loss was due to an incident other than a collision, your comprehensive insurance can be used.

If you chose a $1,000 deductible, you would pay the first $1,000 to replace your vehicle. Your comprehensive insurance would then pay the rest of the cost to replace your vehicle, up to the lower of: the actual cash value (ACV) of the vehicle; or the stated amount that you submitted.