With car insurance rates forecasted to increase 7% on average this year, tacking on optional coverage like comprehensive insurance might feel like an unnecessary added expense. That's especially true for drivers in states that already saw rates jump over 50% in 2024. While there are a few ways to save on insurance premiums, cutting comprehensive car insurance might not be a risk worth taking.
Comprehensive insurance coverage is optional coverage that protects you against damage to your vehicle caused by non-collision events that are outside of your control. The uptick of extreme weather events has increased the chances of wind, rain, flying debris and flood waters causing damage to your car. You don’t want to be caught short when the next storm rolls though.
When shopping for and pricing comprehensive car insurance, remember that this coverage is not a separate type of car insurance policy. Instead, it refers to a specific coverage option on an existing policy.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What is comprehensive car insurance?
You'd think that the combination of liability, collision and uninsured/underinsured motorist coverage would seem to take care of all conceivable risks to drivers — but it doesn’t. None of that other car insurance would cover damage to your car from a falling tree, a collapsing parking garage or your neighbors' kids playing baseball. Comprehensive insurance is a car insurance policy that covers certain damages to your vehicle that are not caused by a collision with another car.
For instance, imagine you leave for school in the morning and as you’re driving, you are hit by a frightened deer that damages your front-end and breaks a headlight. Is this an accident covered under your basic required auto insurance? Not a chance. This is the type of one-off accident that comprehensive car insurance would cover.
Comprehensive auto insurance is supplementary, meaning it’s usually an optional coverage that can be added to an insurance policy. This coverage is usually required if you are leasing or financing your car.
What does comprehensive car insurance cover?
Here are a few types of damage that may be covered by comprehensive car insurance:
- Theft of car
- Vandalism, fire and explosions
- Windshield and glass damage
- Falling trees, limbs and other objects
- Rocks and other objects kicked up by or falling off cars
- Storms, hail, wind, floods, lightning and earthquakes
- Accidents with animals (e.g., hitting or being hit by a deer)
Comprehensive coverage also entitles you to some compensation for renting a car if yours is stolen. Check your policy to see how much the policy would pay per day and for how long.
What does comprehensive car insurance not cover?
- General wear and tear of a vehicle
- Intentional damages
- Mechanical or electrical failure unrelated to an accident
- Damage to your vehicle caused by failing to take proper preventative measures
Is comprehensive car insurance worth it?
According to the most recent rate analysis by Insurance.com, drivers typically pay about $421 per year for comprehensive coverage, with the average annual cost ranging from $156 in Hawaii and up to $1,246 in South Dakota.
The exact cost of comprehensive insurance on your policy depends on a number of factors unique to each driver. This includes the year, make, model and age of the vehicle, whether you park on the street or in a garage, the vehicle’s rating symbols, loss history, as well as your driving history.
What's the difference between comprehensive and collision insurance?
What is comprehensive coverage compared to collision? Basically, they’re two halves of a whole. Collision insurance covers you if your car is damaged by another vehicle, a stationary object or by rolling over.
If you’re in a collision, you’re covered by collision insurance. Conversely, comprehensive insurance covers damage to your car caused by almost anything but a collision. So if kids use your car as a soccer net or rats chew through the electrical wires to make a nest — you’re covered.
Bottom line: Should you buy comprehensive insurance?
Anyone that lives in an area that regularly experiences extreme weather or has high auto theft rates can benefit from a comprehensive auto policy. If you don't want to pay for major repairs or to replace your car in the event it's damaged from a non-traffic related causes, you should seriously consider buying comprehensive car insurance.
Comprehensive insurance can cover the cost to fix or replace your car after damage from non-traffic-related causes, such as fires, vandalism or storm damage. The coverage also pays to replace your car if it’s stolen.
Related Content
-
7 of Warren Buffett's Biggest MissesWarren Buffett's investing wins are highly regarded across Wall Street, but no one can bat a thousand. Here are some of Buffett's biggest misses.
-
Why Toll Brothers Stock Is Falling After EarningsToll Brothers stock is lower Wednesday after the homebuilder missed expectations for its first quarter. Here's what you need to know.
-
4 Ways to Lower Your Home Insurance Premium in 2025Learn how to reduce your homeowners insurance premiums with these four effective strategies.
-
State Farm Seeks Emergency Insurance Rate Hikes in California After WildfiresState Farm has requested emergency rate increases of up to 38% in California, citing wildfire-related losses. Here’s what homeowners need to know.
-
What To Know if You’re in the Market for a New Car This YearThe Kiplinger Letter Buying a new car will get a little easier, but don’t expect many deals.
-
Do Wildfires Have You Worried About Your Insurance Coverage? Here's What to DoWith the California wildfires causing billions of dollars in damage, now is a good time to assess your homeowner's insurance and ensure it covers disasters.
-
California's Home Insurance Crisis: Rising Risks, Soaring Costs and Limited OptionsAs wildfires intensify across California, insurers retreat, leaving homeowners with fewer coverage choices and higher costs. Learn what’s next for the California insurance market.
-
Why Does One Claim Jack Up My Insurance After Years of No Claims?Even loyal customers can be hit with an insurance premium hike after a claim, despite going many years without any claims. There's a reason for that.
-
Will Lower Mortgage Rates Bring Relief to the Housing Market?The Kiplinger Letter As mortgage rates slowly come down here's what to expect in the housing market over the next year or so.
-
Why I'm Keeping My Amex Gold Card Even With a Higher Annual FeeAmerican Express increased its Gold Card fee, starting October 1, but new perks are here, too. Here's the value one editor sees in the card.
