Home Articles What Is Comprehensive Car Insurance… and Is it Worth It?

What Is Comprehensive Car Insurance… and Is it Worth It?

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In the U.S., drivers are legally required to carry liability insurance but comprehensive insurance is usually optional.  If someone owns a vehicle outright, he or she is not required to have comprehensive car insurance. But if someone finances a vehicle, sometimes the car loan company could require him or her to take out comprehensive insurance.  

In the following article, we will discuss what comprehensive car insurance is in detail and whether it is worth getting, even if you are not legally required to have it. 

What is comprehensive car insurance?

Comprehensive car insurance covers damage to your car that results from causes other than collisions.  

As with other types of auto insurance, comprehensive coverage pays for part of your loss after damage to your car. The other part, known as the deductible, is the amount you have to pay.  

The damages that your insurance payment can be used for includes repairs and even a new vehicle.

What does comprehensive car insurance cover?

We have mentioned that comprehensive car insurance covers damage to your vehicle other than that caused by collisions. But neither does comprehensive insurance cover personal items that are stolen from your car or damage to your car that has been caused by potholes.  

So, what types of damages does it cover?  

Well, with comprehensive car insurance in place, you will have coverage for damage that is caused by things like:

  • Natural disasters, such as tornadoes, floods, and earthquakes. 
  • Vandalism.
  • Riots.
  • A run-in with an animal, such as a deer.
  • Break-ins.
  • Theft.
  • Fires. 
  • Fallen objects, such as rocks and tree branches. 

Is comprehensive car insurance available around the world?

Yes, comprehensive car insurance is available around the world.  

Though, you should make sure that it is available in your specific country before you begin weighing up the pros and cons of whether it makes sense to get comprehensive insurance.  

Also, when you do decide to take out the coverage, make sure you compare different insurance companies in your country so that you can find the most cost-effective option.  

For instance, if you live in Australia, you can easily compare car insurance quotes at https://www.iselect.com.au/car-insurance/comprehensive-insurance/ to find providers and a wide range of auto insurance coverage options, including comprehensive car insurance.

Is comprehensive car insurance worth it?

Seeing as comprehensive car insurance protects you financially from things like natural accidents, fires, and theft, it can be more than worth getting.  You will then not be left out of pocket should your car be damaged by a tree branch in a hurricane, for instance.  

However, comprehensive insurance will not pay out for damage caused by a collision, and like any other type of auto coverage, you will have the added expense of adding comprehensive car insurance to your policy.  

So, if you have an old car that has been fully paid for, it might not be worth the additional expense of protecting it against the things that are covered by a comprehensive car insurance policy.  

If you live somewhere where there is little theft and few natural disasters, it might also not be worth taking out comprehensive insurance.  

On the other hand, if you are concerned about things like theft, bad weather, and other things outside of your control, it can be more than worth paying a little extra each month to have comprehensive car insurance and to gain peace of mind.

The Takeaway

At the end of the day, only you can decide whether it is worthwhile taking out comprehensive car insurance.  

Spend time weighing up the pros and cons for your specific circumstances and comparing quotes from different insurance providers to determine whether comprehensive insurance is the right choice for you.