Should you get comprehensive car insurance? (2024)

FAQs

Should you get comprehensive car insurance? ›

If you want to have peace of mind on the road, comprehensive coverage can be worth it as it will help to repair or replace your vehicle when damage is sustained from events other than an auto accident.

While comprehensive coverage is typically more affordable than collision coverage, there may be instances when it's not worth carrying, including: Your vehicle holds a low value: As with collision, consider dropping comprehensive coverage if your vehicle's market value is lower than a few thousand dollars.

There are downsides. If you are in an accident, comprehensive insurance won't pay for the damage. And comprehensive insurance may be expensive if you are purchasing it along with collision insurance.

If you're more likely to get into an accident, you won't want to pay out a higher deductible. However, if you're generally a safer driver, your car insurance premiums will be lower with a $1,000 deductible.

Comprehensive and collision insurance are both options that you should consider adding to your policy. That's because comprehensive coverage protects your vehicle from unexpected damage like a tree branch falling or hitting an animal, while collision insurance protects against collisions with another object or vehicle.

Do I need comprehensive insurance on an old car? If you don't have a loan or lease on your car, comprehensive insurance likely isn't required. And if the vehicle isn't worth much, it may not make financial sense to keep the coverage.

So, if you live in a location with a high level of theft, weather-related damage or other comprehensive claims, your insurer may compensate for the added risk by raising your comprehensive insurance premiums. Your comprehensive premiums also rise when your insurer raises rates across all types of coverage.

Comprehensive auto insurance helps pay to either repair or replace your vehicle after non-traffic-related events, like fires, thunderstorms, vandalism, car thefts or animal collisions. Most car dealerships, banks and other lenders require you to purchase comprehensive insurance if you finance or lease your car.

It's usually worth dropping full coverage on an older car if its value is less than a few thousand dollars, as long as there's no loan on it. The more your car depreciates, the less you'll get from the insurance company after an accident or theft.

How much comprehensive deductible do I need? Comprehensive deductibles can range from $100 to $2,000 in most states. The right comprehensive deductible amount for you depends on your preferences and needs for out-of-pocket costs and your overall insurance rate.

What is a good deductible for a collision? ›

Before you choose a deductible, most insurance professionals recommend you figure out what you can afford to pay if your car is damaged in an accident. If your budget allows for a maximum out-of-pocket expense of $500, you probably should not choose a deductible higher than $500.

Yes, you can lower your car insurance deductible at any time by contacting your car insurance company and telling them what you would like your new deductible to be. Lowering your deductible will make your out-of-pocket costs cheaper if you need to file a claim, but it will also result in higher premiums.

Once you've paid your vehicle off, you're no longer subject to any insurance requirements other than your state's minimums. If you want to drop some types of coverage to save money, that's up to you. Either way, have your insurer remove the lender as a lienholder on your policy.

The good news: According to AutoInsurance.org, your policy will typically cover damage caused by a shopping cart if you have full coverage. Comprehensive and collision coverage could come into play, depending on how things happened.

Your location: Your premium may be higher if you live in an area with higher accident rates than a safer location. Your driving activity: Insurers may factor in the number of miles you drive when setting premiums. Age and gender: Statistically, younger drivers and males pay higher premiums.

Between 10 and 15 years after a vehicle's model year, full coverage is a poor investment. While the cost of full coverage by itself likely won't be more than what a car is worth, the cost of insurance is more likely to be higher than the value of the car after an accident.

You may consider dropping collision or comprehensive coverage if: Your vehicle's value is low. If your car's value has fallen below a few thousand dollars, it might be time to consider dropping collision and comprehensive coverage. That's especially true if you have a high deductible, such as $2,000.

Hagerty, Grundy, American Collectors, American Modern and Heaco*ck provide the best car insurance for old cars. These companies are the best options for classic car insurance because of their fair rates, accessibility and experience in the industry.

Comprehensive insurance pays for almost any non-collision-related damage or loss, including hail, fire, vandalism, fallen tree branches, theft and hitting an animal. Without it, you'll need to pay out of pocket. With it, repairs and replacements are covered, regardless of fault.

Insurance companies often view a lower car insurance credit score as an indicator of increased risk, which may lead to higher premiums for those with less favorable credit histories.

Will a comprehensive claim raise insurance? ›

Yes, a comprehensive claim might increase your rate, but maybe not as much as an at-fault accident would.

Comprehensive and collision are also common types of car insurance coverage, though no state requires them. These optional coverages pay for damages to your car due to fire, theft, vandalism, animal strikes, acts of nature, glass breakage, and collisions. Learn more about each type of car insurance coverage.

The average auto insurance deductible is $500, but you could also select amounts like $250, $1,000 or $2,000; this will also affect your policy's premium. Choosing a higher deductible to get a lower premium may seem like an easy way to pay less for car insurance, but it's not always the best decision.