Comprehensive car insurance: Is it worth it?

Comprehensive insurance is a type of car insurance that covers physical damage to your vehicle in non-collision incidents. While liability insurance is required by law in most states, comprehensive coverage is optional.

Comprehensive car insurance, also called “other-than-collision” insurance, takes care of repairs if your car is damaged by events such as extreme weather events, theft, falling objects or vandalism. It is frequently packaged with collision insurance – which covers damage to your vehicle in an at-fault accident – as full coverage auto insurance.

While having comprehensive insurance can be beneficial, it comes at a cost. The average annual rate for this coverage is $422 per year.

In this guide, we’ll explain what comprehensive coverage is and how it works and answer some common questions about this type of insurance.

Key highlights

• Comprehensive car insurance covers non-collision damage to your car. Examples include severe weather like a tornado, flood or hail; striking an animal while driving; theft and vandalism.
• Comprehensive coverage is optional for most drivers but may be required if you have financed or leased your newer vehicle.
• This form of coverage comes with a deductible, which can be as low as $250 or less or as much as $2,500 or more.
• Coverage is typically limited to your vehicle's current fair market rate or actual cash value.

What is comprehensive car insurance?

Comprehensive car insurance is optional coverage that takes care of non-collision incidents that are unforeseen and out of your control. It covers physical damage to your vehicle caused by accidents with animals, extreme weather, vandalism, theft and floods, among others. Comprehensive insurance also covers glass and windshield damage.

If your vehicle gets damaged or totaled in a covered event, you can file a claim with your insurance company, and your comprehensive insurance will offset the loss. By default, comprehensive insurance covers your vehicle based on its actual cash value. ACV is the value of your vehicle before the incident, including depreciation.

Comprehensive insurance carries a deductible, which is the amount you must pay out-of-pocket when you file a claim. Choosing a lower deductible will result in a larger comprehensive claim settlement, but your premium will be more expensive. Typical deductibles are $250 to $2,500.

What does comprehensive insurance cover?

Comprehensive insurance will pay to repair your vehicle if it gets damaged or totaled in one of the following scenarios:

• Falling trees and other objects
• Theft
• Vandalism
• Fires and explosions
• Windshield and glass damage
• Items falling off other vehicles
• Natural events like earthquakes
• Weather damage from hail, wind, lightning and flooding
• Accidents with animals
• Civil disturbances and riots

What does comprehensive insurance not cover?

Despite the name, comprehensive insurance is not completely comprehensive, and certain losses are not covered. These are some of the situations that comprehensive insurance will not cover:

• Accidents with other vehicles
• Collisions with stationary objects
• Your liabilities when you cause an accident
• Personal items in your vehicle that get stolen or damaged
• Medical expenses for you and your passengers after an accident

How much is comprehensive car insurance coverage?

Comprehensive insurance costs about $422 dollars a year. This average rate was collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

However, comprehensive is just one type of coverage. Remember that liability, which covers the injuries and property damage you cause in an at-fault accident, is required in most states. You may also want to get collision insurance coverage, which we’ll explain in a bit. Many drivers bundle comprehensive coverage and collision coverage in a full coverage car insurance policy.

And remember that comprehensive car insurance premiums are different for each driver and each vehicle. Some of the factors that will impact your premium include: 

• Location
• Insurance company
• Deductible
• Vehicle make and model
• Insurance claim history

Is it better to have a $500 deductible or $1,000 deductible?

The best comprehensive insurance deductible is different for every individual. It depends on your budget and how much you can afford to pay out of pocket for vehicle repairs. 

If you choose a $500 deductible, you will receive larger claim settlements, but your premium will be more expensive. Conversely, if you choose a $1,000 deductible, your claim settlements will be lower, and your premium will be cheaper.

Choosing a higher deductible is generally recommended if getting the most affordable monthly premium is your top priority. However, picking a lower deductible might be better if you can't afford to pay $1,000 out-of-pocket for your car’s repairs. Make sure you have the deductible amount in savings in case you need to file a claim.

The importance of comprehensive car insurance

For many drivers, comprehensive car insurance is beneficial. It covers unforeseen incidents that can cause serious damage or even total your car. Without this coverage, you would have to pay for your car repairs out of pocket.

Comprehensive coverage is the only type of car insurance that covers theft. If your car gets stolen, your insurer will provide a settlement to buy a new vehicle. If you don’t have comprehensive insurance and your car gets stolen, you'll have to purchase a new one without insurance money.

While comprehensive insurance is optional, if you lease your car or have an auto loan on your vehicle, your lender may require it. Because the lender owns and, therefore, has an insurable interest in the vehicle, you can be required to carry a full coverage policy with comprehensive insurance.

How to choose the right comprehensive car insurance

There are some things to keep in mind when you’re shopping for comprehensive insurance: 

• Covered incidents: Before you purchase comprehensive car insurance, find out what situations and perils the insurance company will cover. While most policies are the same, there can be subtle differences. For example, some insurers cover windshield or glass repair with no deductible.
• Limitations and exclusions: You should also check for limitations. It’s possible that comprehensive insurance will not cover specific perils. You can typically find this information in the insurance contract or by speaking with an agent.
• Cost of coverage: You should consider the premium before getting comprehensive car insurance. The cost of comprehensive insurance differs based on various factors and can also vary based on the insurer. If you already have car insurance, you can likely request a quote for comprehensive insurance online to see how much it would add to your premium.
• Deductible options: When you purchase comprehensive insurance, you get to select the deductible. The higher your deductible is, the lower your premium will be, and vice versa. Find out what the deductible options are for the companies you’re considering. Some insurers may even offer a $0 deductible option.

Comprehensive vs. collision insurance: Understanding the difference

Comprehensive and collision insurance are usually bundled in a full coverage insurance policy. However, these two policies cover different things.

As the name suggests, collision insurance covers repairs to your vehicle after an accident with another car or a stationary object, like a mailbox, fence or building. It also covers single-vehicle accidents, like a rollover. Reimbursement is based on your vehicle's ACV, and you will pay a deductible. 

Comprehensive insurance covers non-collision incidents that cause damage to your vehicle. For example, comprehensive insurance will cover weather damage, theft and vandalism. Like collision insurance, it also provides a settlement based on your car’s ACV and has a deductible. 

Here’s an example of the difference between collision and comprehensive insurance: 

If you skid on ice while driving and hit a tree, your car's damage is covered by collision insurance. However, if your car is parked in your driveway and a tree falls onto it, the damage is covered by comprehensive insurance.

Comprehensive insurance is usually cheaper than collision insurance. However, the cost of each depends on several factors, including your vehicle type and location.

Is comprehensive coverage full coverage?

No, comprehensive coverage isn’t full coverage – it’s a piece of full coverage. Full coverage car insurance is a bundle of coverage that includes liability insurance, comprehensive insurance, collision insurance and any other coverage required by law in your state.

Most insurance companies sell collision and comprehensive insurance together. You might be able to purchase comprehensive insurance separately, but you won’t have a full coverage policy.

Do you need comprehensive insurance?

Comprehensive insurance is not legally required in any state, so most drivers aren’t required to carry it. However, drivers who lease or finance their vehicle are often required to have a full coverage insurance policy with comprehensive insurance. Even if you aren't required to carry comprehensive insurance, it’s a good idea to have it if you can’t afford a new vehicle. 

“If you’re thinking about getting comprehensive insurance, there are some important factors to consider,” says Gregg Barrett, CEO of WaterStreet Company, a group of property and casualty insurance experts based in Kalispell, Montana.

Some things to remember are the value of your car, whether you can afford to repair or replace the vehicle, and the risks in your area. 

“These are some of the biggest factors to consider that can help you determine if the additional cost of comprehensive insurance would be more beneficial than basic coverage,” Barrett says.

Is comprehensive insurance worth it?

Whether comprehensive insurance is right for you depends on a number of factors.

Perhaps it’s best to think of comprehensive insurance as an umbrella for financial planning. 

If rain is forecast, you should probably bring an umbrella when you leave home. You can’t predict if and when the rain will come, but you want to be prepared. Similarly, comprehensive insurance protects you financially from unexpected events like theft and vandalism. 

Just like comprehensive insurance, you might not need your umbrella. But when you need it, it’s invaluable, and you’re glad you have it. 

Here are some scenarios to show how comprehensive insurance can protect you in various situations:

• An unexpected storm: Antonio lives in a city prone to hurricanes in Florida. One night, a hurricane causes a tree to fall, severely damaging his car parked in the driveway. Because Antonio has comprehensive car insurance, the cost of repairing his car, minus his deductible, is covered. Without comprehensive coverage, Antonio would have to pay for all his car repairs out of pocket.
• A deer on the road: Sarah’s home is in a wooded area, and she hits a deer while driving home from work. The front end of her car is significantly damaged and needs replacing. Sarah's comprehensive car insurance covers the repair costs after her deductible. If she only had liability insurance, she would have to pay for all the repair costs herself.
• The stolen vehicle: Sunil goes to the mall and parks his car in a public parking lot. When he returns, his car is nowhere to be found. He calls the police and files a stolen vehicle report. Sunil's comprehensive coverage provides a payout for the ACV of his stolen car, allowing him to replace it. Without comprehensive insurance, he would face the financial burden of losing his vehicle without compensation.

At what point is comprehensive insurance not worth it?

As a general rule of thumb, having comprehensive insurance is not worth it when the amount of your annual premium and deductible exceeds the ACV of your vehicle. If your car was totaled, your insurance payout would be less than what you pay for car insurance.

Is it worth having full coverage on an old car?

Usually, having full coverage insurance on an older vehicle isn’t worth it. At some point, the cost of your insurance will exceed what your insurer will pay if something happens to the car.

“That said, comprehensive insurance is particularly important for people who have a new or high-value car, or for those who live in areas prone to severe weather conditions or high crime rates,” Barrett says.

Key comprehensive car insurance terms to remember

If you’re shopping for comprehensive insurance, these key terms can be helpful to know: 

• Covered peril: In car insurance, a covered peril is any source of damage your insurance company will cover. Vandalism, theft, animal accidents, falling objects and fire damage are perils covered by comprehensive insurance.
• Actual cash value: Actual cash value (ACV) is the current value of your vehicle minus depreciation. Age and wear and tear are the two main factors that impact car depreciation. In most situations, your car’s ACV is the most your insurer will pay to replace your vehicle after a total loss.
• Deductible: Comprehensive insurance usually requires a deductible. This is the amount you must pay out of pocket when you file a claim. Choosing a higher deductible will result in a lower monthly premium, and vice versa.
• Full coverage insurance: Full coverage insurance is a bundle of insurance coverages that usually includes liability insurance, collision insurance, comprehensive insurance and any other coverage required by law in your state. Full coverage is optional for most drivers, except those who lease or finance their vehicle.
• Collision insurance: Collision insurance pays for car repairs after an accident with another vehicle or a stationary object.

Bottom line

Comprehensive insurance provides valuable protection for your vehicle if something happens that is out of your control, like theft, damage from extreme weather or accidents with animals. Most drivers purchase comprehensive insurance as part of a full coverage policy. 

Before you purchase comprehensive insurance, consider a few things, like the policy exclusions, deductible options, and premiums. Remember that comprehensive insurance costs depend on several factors, like your location, vehicle type and insurance company.

While comprehensive insurance is beneficial for many drivers, not everyone needs it. For example, if your vehicle's ACV is less than your annual premium and deductible, having comprehensive insurance may no longer be worth it.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these same hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide. 
Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.