What Is Comprehensive Auto Insurance?

Collision insurance will protect your car if you get in an accident. But what about everything else that could go wrong? What about fire, or theft? That’s what comprehensive auto insurance is for.

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What Does Comprehensive Auto Insurance Cover?

The kind of coverage you get with a comprehensive auto policy will vary from company to company. And it will depend on how much you spend on your policy. But in general, a comprehensive auto policy will cover:

• Fire
• Vandalism
• Theft
• Disasters, includes storms and hurricanes
• “Acts of God” — like a tree falling on your car

It’s important to remember that comprehensive auto insurance does not cover damage from a car accident. For that, you’ll need a collision insurance policy. Comprehensive plans are sometimes called “Other Than Collision” coverage. If you want maximum protection, it’s important to have both kinds of policies.

Comprehensive insurance policies have deductibles — the amount of money you have to pay out before your insurance company starts picking up the bill. The higher your deductible, the cheaper your monthly premiums. So you can save money on your monthly auto insurance bills by raising your deductible. But you could have to pay a lot out of your own pocket if you ever file a claim.

If you do have to file a claim, your policy will pay up to the fair market value of your car. That could be much less than the actual cost of replacing your car. So you may want gap coverage, which will pay for the difference. If you’re leasing your car — or have financing — you may be required to have gap coverage.