Definition and Basic Coverage
Comprehensive insurance provides protection for damage to your vehicle that's not caused by a collision. This is why it is occasionally referred to as "other than collision" coverage. Comprehensive coverage helps cover the cost of damages to your vehicle when you're involved in an incident that's not caused by a collision with another vehicle. This optional coverage protects your vehicle against unexpected damage from events beyond your control.
What Comprehensive Coverage Includes
Comprehensive insurance provides coverage for damage to your vehicle that is the result of meteorological events, such as hail, flooding, windstorms, lightning, fire, wind-blown branches, and other natural disasters. Losses such as theft, vandalism, hail, flooding, or colliding with an animal may be covered by comprehensive car insurance. Fires and explosions, falling objects such as tree branches, damaged windows, earthquakes, vandalism, and civil disobedience, such as riots, are among the additional events that are covered.
What Isn't Covered
Comprehensive coverage doesn't cover damages caused by hitting another vehicle or object. These incidents are covered under collision coverage. Comprehensive car insurance doesn't cover damage due to normal wear and tear or mechanical issues. It also won't cover losses due to fraudulent activities. Other exclusions include damage to personal belongings inside your car, medical expenses, personal liability, and damage from potholes.
Requirements and Recommendations
Comprehensive coverage is not required by law in any state, but it's usually required by lenders if you're leasing or financing your vehicle. According to recent data from the Insurance Information Institute, 80% of insured drivers opt for comprehensive coverage. If you own your vehicle, the decision depends on your car's value and your financial circumstances.
Cost and Value Considerations
The average cost of comprehensive auto insurance nationally was $196 per year in 2022, according to the National Association of Insurance Commissioners. The average cost of comprehensive coverage among TGS Insurance customers in the state of Texas cost about $183.57 per year. The cost varies based on factors like your car's value, your location, and theft rates in your area.
How Claims Work
Unlike some coverages, you don't select a limit for comprehensive vehicle insurance. The maximum payout is based on the actual cash value of your vehicle. When you file a claim, you'll pay your chosen deductible first, and your insurer covers the remaining repair costs up to your car's current market value. Higher deductibles typically result in lower premiums.
When to Consider Comprehensive Coverage
In conclusion, comprehensive coverage is most beneficial for newer or high-value automobiles. Repair or replacement expenses can be expensive. It's especially useful for individuals who live in locations prone to weather-related incidents, high-theft areas, or areas with large wildlife populations. However, for older vehicles with lower values, the coverage may not be cost-effective if the annual premium approaches 10% of the car's worth.