Understanding your policy is crucial to getting great coverage.
What is comprehensive insurance and how do you know if you need it?
Understanding comprehensive insurance can be a bit confusing. After all, it sounds like it would cover everything! However, it’s really one piece of the auto insurance puzzle.
Designed to cover damage to your car from non-collision events, comprehensive insurance can help protect you from unexpected costs if your vehicle is damaged by things like falling objects, natural disasters, or animal collisions.
In this guide, we’ll break down what comprehensive insurance covers, how it differs from collision insurance, and why it might be essential for your protection, especially if you’re financing your vehicle.
Whether you’re new to car insurance or looking to update your policy, understanding comprehensive coverage can help you make the best decision for your needs and budget.
What Is Comprehensive Insurance?
Comprehensive insurance (or “comp”) covers a range of unexpected, non-collision damages to your car. It’s designed to step in when things like severe weather, falling objects, or animal collisions cause damage.
Here’s what this coverage typically includes:
- Falling Objects: Damage from things like a tree branch falling on your car.
- Natural Disasters: Events like floods, hail, or wildfires that cause damage to your vehicle.
- Theft and Vandalism: Covers damage or loss from a stolen or vandalized vehicle.
- Animal Collisions: If you hit a deer, comprehensive insurance will help pay for the damage.
In essence, comprehensive car insurance coverage pays for repairs or replacements for many non-collision-related incidents. If your vehicle suffers from a covered loss such as severe weather or vandalism, this coverage ensures that the damage to your vehicle is manageable.
Comprehensive vs. Collision Insurance
Comprehensive coverage and collision insurance are often purchased together, but they cover different types of incidents.
While comprehensive coverage protects against non-collision events, collision insurance applies when your vehicle is damaged from an impact, whether with another vehicle or an object like a fence.
Here’s a closer look at how they differ:
- Comprehensive Coverage: Covers damages like a falling tree branch, hitting a deer, fire damage, or theft.
- Collision Coverage: Covers damages when your car collides with another vehicle or a stationary object other than an animal. For instance, if you back into a pole or get into a fender bender, collision coverage would help cover the costs.
In short, both types of insurance work together to cover most types of vehicle or object damage, so you’re better protected on the road.
Is There Such a Thing as “Full Coverage Car Insurance”?
Technically speaking, no. There is no such thing as “full coverage car insurance.”
In legal terms, full coverage would mean your policy has the highest available limit for every possible coverage option.
It’s easy to assume that comprehensive insurance equals full protection for your vehicle, but there are a variety of required and optional coverages you should consider if you’re interested in “full coverage car insurance.”
- Personal Injury Protection (PIP): Covers medical expenses and lost wages for you and your passengers, regardless of who is at fault in an accident. In Florida, drivers are required to carry at least $10,000 of PIP coverage.
- Property Damage Liability (PDL): Pays for damage you cause to other people’s property, whether it’s their vehicle, a fence, or another structure. Floridians are required to carry at least $10,000 of PDL coverage.
- Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees if you’re responsible for injuries to others in an accident. This is an essential part of full coverage, as medical costs can be significant, and bodily injury liability helps protect you against these potential expenses.
- Uninsured Motorist Coverage: If you’re in an accident with someone who doesn’t have insurance (or doesn’t have enough), uninsured motorist coverage can help. Given the number of uninsured drivers on the road, this is a valuable coverage to include.
- MedPay (Medical Payments Coverage): Covers medical expenses for you and your passengers regardless of fault. Unlike PIP, MedPay doesn’t cover lost wages but can help pay out-of-pocket medical costs, co-pays, or deductibles.
By including these coverages, what many folks refer to as a “full coverage” auto policy provides a robust level of protection, covering not only damage to your own vehicle but also potential liabilities to others. However, you might not need the highest possible limits for each option.
To ensure you have the right coverage balance, speak to an insurance agent about building a policy that meets your needs and minimizes your financial risk.
Do I Need Comprehensive Insurance?
While comprehensive insurance isn’t required by law, your financing company or lender may require you to carry comprehensive (and collision) insurance until your vehicle loan is paid off. This protects their financial interest if the car is totaled.
If you’re weighing the costs, adding comprehensive coverage with higher deductibles may help reduce your premium. Furthermore, consider whether you could afford to pay out of pocket if something happened to your car—this will help determine if comprehensive coverage is right for you.
Comprehensive and collision coverage can be essential if you live in an area prone to storms or if your car is expensive to repair or replace.
Conclusion
Comprehensive insurance is a valuable part of protecting your car against unpredictable events, but it’s only one piece of the puzzle.
By pairing it with other types of coverage, such as collision, you can build a policy that truly safeguards your vehicle.
If you have questions about adding comprehensive coverage or need help balancing premiums and deductibles, contact Harry Levine Insurance to discuss the best options for your needs.