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Brokers Top Broker Picks. Robo Advisor and Crypto Picks. Mortgages Top Picks. Insurances Auto Insurance. Loans Top Picks. A comprehensive cover is a form of motor insurance that covers you for every incident that might involve your vehicle. Some of these may include:. Comprehensive insurance is optional, and you can legally drive a car you own only with basic protection. Bear in mind, however, that if you lease a car, the lender might require you to take out this type of cover for the period you have finance on it.
Comprehensive cover will pay for the damage to your vehicle, but not to the other vehicles' repair costs. For that, you will need liability insurance.
There is a common misconception that comprehensive insurance pays for anything that will happen to your car. Despite the name, this is not the case. If you cause damage to another vehicle or injure other road users, that scenario will be covered by the liability insurance policy.
A comprehensive policy is a type of full coverage, and it can include collision insurance, in some cases. Find out more about comprehensive cover.
Most car insurance companies allow you to choose your deductible amount. When you drive a high-value vehicle, and the parts and labor are expensive, you might need the comprehensive cover.
For example, if you have a collectible vehicle, you might want to protect it more than a more common, ten-year-old model that is cheaper to fix. The general rule is that you should drop your comprehensive cover if you are paying too much based on the value of your car. Take your car's value, subtract the deductible, then take away the cost of the six-month policy.
If you get a negative amount, chances are that it is not worth paying for a comprehensive policy and you have to contact your insurance company to cancel your payments. Collision coverage will protect you financially when you get involved in a road traffic accident. Auto Coverages Discounts Claims. Get a quote. This may include repairs or a full replacement of your covered vehicle.
Comprehensive car insurance pays for damage to your vehicle caused by covered events such as theft, vandalism or hail, which are not collision-related. Collision Insurance Your car hits an object, such as a tree Your car collides with another vehicle Your car rolls over Your car is damaged due to hitting a pothole. Comprehensive Insurance An object falls on your car, such as a tree An animal collides with your car Your car is damaged due to fire or natural disaster Your car is vandalized or stolen.
Factors to consider You may be wondering if having both types of coverage is necessary. In order to determine if you need collision insurance and comprehensive insurance, consider the following: The value of your car — Knowing how much your car is worth is important.
Is your car new and higher in value? If so, these coverages could save you from paying out of pocket in the event your car needs to be repaired or replaced. The limit is the maximum amount your insurer will pay for a covered claim. The limit for comprehensive coverage is typically the depreciated value or the actual cash value of your vehicle.
Say your car is stolen or totaled in a covered claim. Your insurer would cut you a check for the car's actual cash value. If you wanted to replace your totaled car with a new vehicle that costs more than your insurance reimbursement, you would have to pay the balance out of your own pocket. Another key thing to know about comprehensive coverage is that it has a deductible. A deductible is the amount you pay toward a covered claim. Now you have a little more information on the benefits of comprehensive coverage and how it works.
Contact an Allstate agent. When you drive with quality coverage, you drive with peace of mind. Allstate auto insurance can help you stay protected for wherever the road takes you. Damage to your car from a collision Damage to another person's vehicle from a collision Your or your passengers' medical expenses after an accident. When you purchase comprehensive coverage, you will select a set deductible , which is the amount you pay out of pocket toward a covered claim.
Comprehensive coverage has a limit , or the maximum amount your policy will pay toward a covered claim. The limit on comprehensive coverage is typically the actual cash value of your vehicle. If your car is stolen, for example, your insurance company would reimburse you for your car's depreciated value, minus your deductible. In other words, if you wanted to replace your stolen vehicle with a newer make and model, you would likely have to use some of your own money to do so, in addition to using the reimbursement from your insurer.
Keep in mind that the comprehensive deductible and limit are separate from your policy's collision deductible and limit. Choosing a higher comprehensive deductible generally means your premiums will be lower, which can save money upfront. However, you may have to pay more out of pocket toward a covered claim.
Likewise, choosing a lower comprehensive deductible means the amount you pay for coverage will increase. Your agent can help you determine what deductible and limits fit your needs. Collision coverage helps pay to repair your car if it's damaged in a collision with another vehicle or object, such as a fence.
Generally, collision coverage comes into play because a driver gets into a car accident. Comprehensive is a separate coverage from collision.
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