Comprehensive Coverage: Is It Necessary?

Comprehensive insurance covers damages to your car for incidents aside from collisions, such as theft and vandalism. While comprehensive coverage is not legally required, if your vehicle is leased or financed, you may be required to buy it. But what does that include and not include?

What It Covers

• Theft: If your car is stolen (including parts, like catalytic converters)
• Natural disasters or weather: Hail, storms, floods, etc.
• Fire: Damage from fire or explosions
• Falling objects: Damage from trees, rocks, or other objects
• Animals: Collisions with animals (like deer)
• Vandalism: Intentional damage caused by someone
• Glass breakage: Windshield cracks or other glass damage

What It Doesn’t Cover

• Collisions, with other cars, potholes, and any other objects
• Regular wear and tear
• Mechanical/electric breakdown or failure
• Damages a driver causes on purpose
• Tire damage
• Ridesharing or other commercial driving
• Injuries
• Nuclear explosions, war, or biochemical attacks
• Custom equipment or any electronic equipment that your manufacturer didn’t install (some insurers sell separate custom equipment coverage)
• Vehicles that:
  • Have fewer than four wheels
  • Are unlisted
  • Are used for preparing for or competing in a race
  • Are not meant to be used on public roads¹
• Punitive damages, including recklessness, malicious acts, or gross negligence²

How It Works

If your car got damaged under a covered comprehensive claim, first, you would pay your comprehensive deductible (if you have one; some policies have a $0 comprehensive deductible). Then, your insurance provider would cover the rest of the costs up to the limit you’ve selected. Beyond your limit, you’ll be responsible for the costs out of pocket.

Cost

As of 2021, the last year for which the National Association of Insurance Commissioners (NAIC) released data, the average monthly cost of comprehensive coverage in the U.S. is $14.32, or $171.87 annually. However, the cost of auto insurance has risen by 40 percent to 50 percent between 2021 and 2024, so your costs will likely be higher. Keep in mind, too, that comprehensive coverage costs vary within states, by city, and even by ZIP code, depending on factors such as weather and rates of auto theft.

Most people driving need comprehensive coverage. However, there are some exceptions.

You likely need comprehensive coverage if: 

• You finance your vehicle and your lender requires it.
• You have a new car.
• You have a broken-down car.
• You have a car in storage.

It’s wise to purchase comprehensive coverage, even for cars that aren’t being driven, because it protects against theft, vandalism, and weather-related incidents.

You don’t need comprehensive coverage if: 

• You have an old car, usually 10 years or older. With older cars, their value has often depreciated to the point where the cost of premiums is higher than the car’s value. If the car is stolen or totaled, you would receive less for the vehicle than what you’ve paid in premiums. In that case, it may make sense to either pay for damages out of pocket or get a new car.

Let’s dive deeper into the deductibles and limits behind comprehensive insurance.

Deductibles

If you’re not familiar with how deductibles work, the deductible is the amount that you have to pay toward a covered claim before your insurance provider will contribute.

Your comprehensive coverage has its own deductible, which you will select. Make sure that if you got a covered claim tomorrow, you could afford your deductible. On average, comprehensive deductibles are $500, although they can be anywhere from $0 to $2,000. (Collision deductibles are typically higher, around $1,000, because collision losses tend to be higher than comprehensive ones).

Although they’re not the same thing, comprehensive coverage is often grouped with collision coverage. Both cover damages to your vehicle, but there are some key differences to be aware of.

What Is Collision Coverage?

First, let’s define collision coverage. Collision coverage covers damages to your vehicle from a car accident in which you were at fault. It also covers damages from rolling cars and potholes. However, it doesn’t cover normal wear and tear or mechanical damage.

Similarities and Differences

Let’s compare collision and comprehensive coverage.

• Similarities: Both coverages apply to your car’s damages in an at-fault accident, not the other party’s damages. Both aren’t required by law, both include deductibles, and both are only necessary for new cars, not old cars.
• Differences: Collision coverage covers damage from collisions, while comprehensive coverage does not. Collision coverage is more expensive than comprehensive coverage.

Comprehensive coverage is not the same as full coverage. Rather, it falls under full coverage’s umbrella along with liability coverage (property damage coverage and bodily injury coverage), collision coverage, uninsured/underinsured motorist coverage, and medical payments coverage. Learn more about the differences between full coverage and liability insurance.

If you’re not sure whether comprehensive insurance is right for you, speak to your insurance agent or broker. However, unless you want to pay out of pocket for theft, vandalism, or weather events like hail, comprehensive coverage is a necessity. We’ve reviewed the best insurance companies for full coverage.