Talking With Insurance Companies

What is comprehensive auto insurance coverage? Whether this is your first experience with auto insurance, you're shopping for a new policy, or you just want to upgrade your existing one, take a look at everything you need to know about comprehensive coverage and how an auto insurance broker can help you to purchase or add to a policy.

Do All Auto Policies Include Comprehensive Coverage?

No, all insurance policies won't include this type of coverage. As the name implies, comprehensive coverage includes a comprehensive (or full) list of incidents. Instead of only covering collisions, this part of an insurance policy covers damage caused by everything from wild weather and falling trees to vandalism or theft. 

Do You Need Comprehensive Coverage?

No, you don't necessarily need this type of auto insurance coverage. But there are some conditions that may make it mandatory. If that sounds confusing, start with the type of auto financing you choose. Drivers who own their car without financing do not need comprehensive coverage. But if you lease or finance the vehicle, the lender may require you to purchase comprehensive coverage as part of your insurance policy, according to the Insurance Information Institute. This protects the lender's financial interest in your vehicle.

What Doesn't Comprehensive Coverage Include? 

Comprehensive coverage won't pay for the cost of collision-related damage. This means it won't cover repair or replacement costs if you hit another driver or another driver hits you. If a liability or collision policy covers the damage or incident, it does not fall under the comprehensive category. 

Where Can You Buy Comprehensive Coverage?

An auto insurance agent can help you to find and choose this type of coverage. Most auto insurance companies offer comprehensive coverage as part of a policy package. But this doesn't mean all comprehensive policies are equal. While these policies usually cover the same or similar events and incidents (such as falling trees, fire, vandalism, or flooding), they vary in specifics, prices, and levels of coverage.

Before you buy comprehensive coverage, talk to an auto insurance broker about your options. Make sure that the policy includes events or types of damage that you have concerns about. Along with the coverage itself, you also need to select a deductible. The deductible is the amount of money you'll pay out of pocket before the insurance takes over. A lower deductible policy may cost more to buy. But this type of coverage will cost you less in per-incident repair or replacement-related expenses.