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Comprehensive Insurance

Comprehensive insurance from top rate carriers provides peace of mind. Find better rates for comprehensive insurance from nationwide, regional and local discount carriers offering best value protection here online. Comprehensive Insurance Definition

Comprehensive insurance is one three core components to a policy. In simple terms these key elements are:

1. Liability (Mandatory - at a minimum level in each state)
2. Collision (Optional)
3. Comprehensive (Optional)

What Is Comprehensive Insurance?
So what is comprehensive insurance? Comprehensive insurance is that part of a standard policy that protects you from financial loss if your vehicle is stolen or is damaged by things other than a crash or collision.

auto comprehensive insurance

This optional coverage is the one that covers the peril of theft; without it, should your auto be stolen you have no financial recourse.

Auto comprehensive insurance is a separate element within a policy sometimes referred to as just comp. Auto comprehensive insurance is so called because when added to Liability and Collision elements it makes the policy more whole, becoming in effect "comprehensive" by definition.

auto comprehensive insurance Because of this fact the term "comprehensive insurance" is sometimes used to mean a policy that is more correctly described as Standard or Full Coverage, which contains all three of the individual core components of a policy and more.

Comprehensive insurance should not therefore be misunderstood or confused with "fully", "complete" or "fullest possible coverage".

Comprehensive insurance is an optional coverage, which means that the law does not require you to hold it - you have a choice. In practice, most people elect to buy comprehensive insurance as part of their policy, principally to gain protection from the financial consequences of auto theft.

Comprehensive insurance is a separate element to a policy that has its own cost attached. You may get comprehensive insurance quotes and observe what the cost is for this particular coverage aspect when examining any quotes. You can also view the cost of your comprehensive insurance on your policy declarations page.

The cost of comprehensive insurance like other aspects to your policy is determined by multiple factors including your age, location, type age and value of the auto, annual mileage and more.

Do I Need Comprehensive Insurance?

Do I Need Comprehensive InsuranceAuto insurance comprehensive insurance is optional and not mandated by state law. Auto insurance comprehensive is however typically offered or quoted for inclusion within a policy by default. Companies and agents providing quotes for a standard insurance policy will be offering you comprehensive insurance within their price quote.

The decision whether or not to purchase comprehensive insurance is normally governed by two main considerations:

1. Is your auto being leased or auto financed?

If yes then the company financing normally requires that you hold coverage for physical damage that includes comprehensive insurance as part of the financing agreement. In this case you have no choice but to seek quotes that include comprehensive insurance.

2. The cost of the coverage weighed up against the actual cash value of the auto.

Comprehensive insurance protection is normally limited according to the actual cash value of the auto. What is the financial implication (loss) to you if your auto was stolen and never recovered? Is having no comprehensive insurance to reimburse you the actual cash value of the auto a risk worth taking?

One way to answer the question or decide is to do a quick calculation. The decision to drop comprehensive insurance is often taken or made as a wider decision to drop both the optional coverages of collision and comprehensive insurance. Taken together, these two optional elements amount to approximately 50% of the cost of an annual premium.

a) First estimate the current value of the auto concerned. You can use a site like Kelley Blue Book. Take away a figure that reflects a private sale situation as the best estimate of the amount paid under a comprehensive insurance claim. b) Next check your existing declarations page or new quotes and add together the collision and comprehensive insurance premium elements. If together these add up to about 10% or more of the estimate value of the auto then it may be worth the risk of dropping such. Make sure that you calculate an annual total. (e.g. if your declarations is for 6 months then double up for a 1 year total). Example: 12 year old auto has an estimated private sale current value of $3,750. A deductible of $500 applies, thus in the event of a successful comprehensive insurance claim due to an unrecovered theft you would be reimbursed $3,250. If your annual collision and comprehensive insurance quote or premiums together total $325 or more (10%) then it may be better to keep this money as savings for a new or replacement auto.


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