Is Comprehensive Insurance Worth It?

When you buy car insurance, you often choose both collision and comprehensive coverage. Collision insurance covers damage to your vehicle if you’re at fault in an accident.

At the same time, comprehensive coverage will protect your vehicle from almost everything that isn’t caused by a collision. However, since it costs extra, is it really worth it?

In this article, I will tell you all about this insurance, including how much it costs and if you really need it.

What Is Comprehensive Insurance?

The name will make you think it covers every type of damage. But that’s not true. It covers damage that your collision insurance doesn’t.

It kicks in for events like:

• Theft or vandalism
• Fire or explosion
• Natural disasters (hail, flood, hurricane)
• Falling objects (like tree branches or road debris)
• Hitting animals (such as deer or stray dogs)
• Civil disturbances (riots, protests, or vandalism during unrest)

Is Comprehensive Coverage Right for You?

According to NerdWallet, while it’s not required by law or insurance companies, you might need it if:

• Your car is financed or leased (they’ll likely require it).
• You can’t afford to repair or replace your vehicle if something happens.
• You park or drive in high-risk areas (like places prone to theft or bad weather).
• You live in an area with extreme weather (like hail, floods, or heavy storms).
• You have a young driver under 25 on your policy.
• You don’t have enough savings to repair or replace your car.

Even if your car is old, the experts say it is often worth having comprehensive coverage as long as the insurance cost is less than 10 percent of its value (after the deductible).

How Do I Know If It’s Worth Keeping Comprehensive Coverage?

To figure out if you should keep your comprehensive coverage, try this:

1. Review your comprehensive insurance cost every six months.
2. Determine the vehicle’s worth. The Kelley Blue Book provides a figure based on your car’s make, model, mileage, and condition.
3. Then, subtract your deductible from the worth of the car.
4. Subtract your six-month premium from the amount you got in Step 3

How Much Does Comprehensive Insurance Cost?

The average cost for this insurance in the US is around $160.

However, your actual premium depends on:

• Vehicle make, model, and year.
• Where you live
• Your claims history
• Your chosen deductible (typically $250 to $1,000)

A higher deductible lowers your premium but increases your out-of-pocket cost in a claim.

What Does Comprehensive Insurance Not Cover?

What doesn’t comprehensive insurance cover?

It doesn’t cover:

• Damage from collisions (that’s collision coverage)
• Mechanical breakdowns
• Wear and tear (like worn tires or brake pads)
• Personal belongings stolen from the vehicle (home or renters insurance may cover this)
• Injuries to you or others (this falls under liability or medical payments)

How Does Comprehensive Insurance Work?

Before buying car insurance, understand what a deductible is. It’s the amount you pay out-of-pocket before insurance kicks in after a covered event, like hail damage. When you have paid a deductible, the insurance will take on the remaining share, which will be limited to a specific maximum.

This limit is based on your car’s current market value, not its original purchase price. So, if your vehicle has lost value over time, that’s what your insurance will cover—not the original purchase price. (That’s where gap insurance can come in handy.)

Let’s break it down with some examples:

Staying Under the Policy Limit

Anna’s car is worth $7,000. She hits a deer, causing damage that costs $1,500. Since the repair cost is less than the car’s value, Anna’s deductible is $500. The insurance company covers the remaining $1,000 to fix her car.

Hitting the Policy Limit

Christy’s car is worth $10,000. One day, someone stole it. Since she has a $1,000 deductible, the insurance company cuts her a check for $9,000 (the value of her car minus her deductible). 

Going Over the Policy Limit

Jeff’s car is worth $3,000. A ladder fell off a truck while he was driving and hit his car. In all, the damages he incurred with repair would be $3,500. It will be regarded as a total loss since the repair cost exceeds the car’s total worth. 

Jeff has a choice now:

• Most people would take the $2,000 payout from the insurance (the car’s value minus the deductible).
• But maybe Jeff loves his car too much to let it go. If he could attempt repairs independently, he could sign an agreement to keep the vehicle with a salvage title and lesser payment from the insurance company. He cannot drive it until it is fully repaired and has a rebuilt title.

Does the Law require Comprehensive Insurance?

While comprehensive insurance isn’t legally required, lenders often make it mandatory if your car is financed or leased.

Comparing Comprehensive vs. Other Types of Coverage

Comprehensive Insurance Claim Examples

1. Hailstorm Damage

You wake up to find your windshield shattered and your roof dented after a severe hailstorm. Comprehensive coverage pays for repairs minus your deductible.

2. Animal Collision

You hit a deer on a rural highway, damaging the front end. Only comprehensive coverage helps here—collision won’t.

3. Stolen Vehicle

Your car is missing from your driveway. After filing a police report, your insurance provider pays you the actual cash value of your vehicle (minus deductible).

Pros and Cons of Comprehensive Insurance

Pros

• Protection from unpredictable events
• Peace of mind for valuable or new vehicles
• Covers many non-driver-related risks
• Often required by lenders or lease contracts.

Cons

• Adds to your premium cost
• It may not be worth it for older or low-value vehicles.
• You still pay a deductible before coverage kicks in.
• It doesn’t protect against collision damage.

When Comprehensive Insurance Makes Sense

You should strongly consider keeping comprehensive if:

• Your car’s market value exceeds $4,000
• You live in areas with storm risks or high theft.
• You don’t have the savings to handle a total loss.

When You Can Skip Comprehensive Coverage

Comprehensive might not be worth it if:

• Your car is worth less than $1,500 and over 10 years old.
• You can pay for your vehicle with your own money.
• You live in a low-risk area for theft and weather damage.

How to Lower Your Comprehensive Premium

To keep your rate affordable:

• Raise your deductible (but only if you can pay it)
• Ask about bundling with home or renters insurance.
• Install anti-theft devices (may qualify for discounts)
• Maintain a clean claims history.
• Compare quotes from multiple insurers.

Comprehensive Insurance and Actual Cash Value

Claims are settled based on your car’s actual cash value (ACV), which is based on its market value, not what you bought it for. They give you the ACV minus your deductible if your car is totaled.

This is why comprehensive coverage is most valuable on vehicles that retain significant value.

Common Myths About Comprehensive Insurance

Myth 1: “It covers everything.”

Truth: It only covers non-collision events.

Myth 2: “I don’t need it if I don’t drive much.”

Truth: Even if you rarely drive, your parked car is still at risk of theft, vandalism, falling objects, or weather damage—comprehensive coverage protects you in these situations.

Myth 3: “If my car gets totaled, I get a new one.”

Truth: You get the current market value, not a brand-new vehicle—unless you pay for new car replacement coverage.

Do You Need Comprehensive Insurance?

Ask yourself these questions:

• Can I afford to replace my car today?
• Do I live in an area with crime, wildlife, or harsh weather?
• Is my car financed or leased?
• Does my vehicle still hold significant value?

If you answered yes to any, it is probably worth having the comprehensive insurance.

Final Verdict: Is Comprehensive Insurance Worth It?

If the car still has some market value, if you live in a high-risk area, or if your vehicle is financed: Yes. The cost of coverage is paltry compared to what you’d stand to lose from theft, fire, or a felled tree branch. For many drivers, comprehensive insurance means peace of mind and carrying the proverbial umbrella against perceived risks.

But for older cars that aren’t worth much? You may be better off pocketing the savings and going without