Comprehensive Car Insurance – Guide to Auto Coverage

Comprehensive insurance is an optional form of auto coverage that pays for vehicle damages from events unrelated to vehicle collision. Accidents like road debris damage, weather, or anything separate from car crashes qualify under comprehensive car insurance.

According to the Insurance Information Institute in 2021, 80% of drivers purchased comprehensive and liability car insurance.

During an accident, you’ll most likely have comprehensive car insurance if you drove a financed or leased vehicle. Everything may be confusing as you wonder who pays for what damages.

If you experienced a vehicle collision, you may need an auto attorney by your side to help you negotiate with these insurance companies. When backed into a corner, a legal expert can represent your case with your best interests at heart.

How Does Comprehensive Car Insurance Work?

Comprehensive car insurance works when your vehicle experiences an unfortunate event outside your control that is non-crash related.

You may file a claim by calling your auto insurance company and they’ll submit it for review.

Usually, you have to pay a deductible and your insurance company would cover the rest of the damages. Insurance companies typically have 15 days to acknowledge receipt of the claim and 15 days to investigate.

Straightforward claims may resolve within a week but can take up to 40 days if the investigation has complications or more info is needed.

This is why you should report your claim and give out all necessary information as soon as possible so your claim may be resolved sooner.

The most you can get for your settlement from comprehensive insurance is the cash value of your vehicle or the cost of repairs. Comprehensive car insurance does not cover medical fees for you or your passengers from the incident.

You may dispute the settlement if you believe you should receive more. If so, having an auto attorney can be useful to guide you through the claim process.

What Does Comprehensive Car Insurance Cover?

Comprehensive car insurance covers circumstances that damage your vehicle separate from car accidents. Events that may be covered by comprehensive car insurance are:

• Theft
• Vandalism
• Natural disasters (fire, hurricane, flood, etc)
• Falling objects such as tree branches, rocks, etc.
• Hitting an animal on the road
• Weather-related accidents
• Glass and windshield damage

For example, your car is parked on the street and you find that tree branches have shattered your windshield. Your comprehensive insurance would cover the repairs since the damage was unavoidable and no other driver caused the accident.

If your catalytic converter was stolen due to theft, because the incident wasn’t crash-related, your comprehensive insurance would cover the repairs and replacement.

Natural disasters like floods are not within your control. Thus you can get comprehensive compensation for your vehicle’s experience with these damages.

Comprehensive insurance is usually optional when your vehicle is paid off. However, if you are leasing or financing your vehicle, most dealerships or car rentals require full coverage, which may include comprehensive insurance.

Contact your insurance company to learn more about comprehensive insurance and see if you need it.

Exceptions to Comprehensive Car Insurance

Not every accident involving your vehicle is covered by comprehensive car insurance. These incidents may require legal intervention instead of just an insurance claim.

Some exceptions for comprehensive car insurance are:

• Collisions: In most state laws, drivers must have liability coverage to cover car accidents where they were at-fault. If you were at-fault, you may need collision insurance to pay for your damages.
• Normal wear-and-tear on vehicle: You would have to pay out-of-pocket for repairs caused by regular wear-and-tear use of your vehicle.
• Mechanical or electrical problems: Comprehensive does not cover mechanical or electrical failures within your car from normal use. For damages caused by faulty manufacturing parts, you may qualify for a product liability claim.
• Driving illegally: Comprehensive insurance doesn’t cover incidents of reckless driving such as driving under the influence, traveling without a valid driver’s license, or failing to update vehicle registration.

Is Comprehensive Car Insurance Mandatory?

No, comprehensive insurance is optional for drivers who own their vehicles and want to cover them from events outside their control. However, most vehicle lenders require comprehensive insurance if you’re leasing or financing a vehicle.

Comprehensive Coverage Costs, Deductibles, and Limits

The cost of comprehensive coverage depends on your deductibles and policy limits. A deductible is how much you would pay upfront for a covered claim as your insurance covers the difference.

For instance, if your vehicle suffered comprehensive damages amounting to $2,000 of repair costs, and your deductible is $500, you must pay $500 to your insurance company and they’ll cover the rest ($1,500).

Your policy has a limit on how much it will pay for a covered claim. The limit is the maximum amount your insurance company can pay up to and no more in actual cash value.

If auto repair costs exceed the actual cash value, your insurance company may declare your vehicle a total loss. In this circumstance, the company will pay you the actual cash value excluding the deductible.

Comprehensive vs. Collision Insurance Coverage

Even though both types of insurance are optional and important, comprehensive insurance covers different scenarios vs. collision insurance coverage.

Collision insurance covers vehicle damages caused by vehicle crashes, whether it be from objects or other drivers. Comprehensive car insurance covers vehicle damages caused by unforeseen scenarios separate from vehicle collisions.

Choosing between comprehensive or collision insurance may depend on the state you live in and your budget. You can even insure your vehicle using both forms of insurance, also known as full coverage.

Is Comprehensive Car Insurance Full Coverage?

Full coverage is not a type of coverage, but a general term to describe if you’re insuring your vehicle using all three types of car insurance. This is:

• Liability insurance (varies on state minimums)
• Comprehensive insurance
• Collision insurance

Full coverage is a bundle of different types of insurance to fully protect your vehicle and reimburse your losses. New York has the highest percentage of full coverage car insurance due to the high-density population and frequent accidents in urban areas.

You should consider full coverage insurance if you live in an area where accidents are prone to happen. View your current policy and see if you should get comprehensive or full auto insurance.

Is Comprehensive Car Insurance Right for You?

Comprehensive insurance may be right for you if you live in areas with natural disasters like fires or floods.

For instance, New Hampshire is the only state that doesn’t require car insurance. However, the state often experiences natural disasters such as floods, tornadoes, and winter storms. Also, many animals cross roads in the area, thus, a high percentage of drivers are insured with comprehensive auto insurance.

You may need to consider the age of your vehicle and whether it’s worth insuring under comprehensive coverage.

The location where you live influences insurance rates. If you live under a crime-filled area, comprehensive coverage may be for you.

Otherwise, it’s better to have comprehensive insurance to protect you from other incidents such as theft, vandalism, etc. Consider comprehensive insurance if it’s within your budget and where you live.

Will Premiums Increase When Making an Insurance Claim?

Yes, premiums may increase when filing an insurance claim, but the length of time and cost of increase varies with the claim you file and your insurance company. Filing multiple comprehensive claims within a short period can lead to an increase in your premium.

Your driving history, location, and the severity of your claim, can affect your premiums after filing for a comprehensive claim. Therefore, be careful when driving on the roads and leave your vehicle in secure locations to prevent filing consecutive auto claims.

Find Expert Legal Guidance With an Auto Accident Lawyer

The auto settlement timeline from initial claim to settlement may be confusing while you’re recovering from your injuries. Let a specialist from LegalASAP help you get started with your auto claim.

We have 500+ law firms in our attorney network around the United States ready to assist you with your case.

Submit a free quick consultation form and see if your claim qualifies with an auto attorney. You can contact us at 888-927-3080, to ask questions or concerns you may have.