Do I need comprehensive car insurance?

Overview: Deciding whether you need comprehensive car insurance means looking beyond what’s required by law. Comprehensive coverage helps pay for damage to your car caused by non-collision events like theft, vandalism, weather damage or animal strikes. Whether this extra protection is worth it depends on your vehicle’s value, local risks, budget and your comfort with unexpected expenses. Considering these factors can help you determine if comprehensive coverage is a valuable addition to your auto insurance.

What comprehensive car insurance covers

Depending on your state, certain coverages may be required by state law, such as liability, personal injury protection (PIP) and uninsured/underinsured motorist (UM). Adding collision insurance helps cover repairs to your car in a crash. But what about everything else that can happen to your vehicle?

Comprehensive car insurance steps in when your car is damaged by non-collision events, including:

• Theft of your vehicle
• Vandalism (like broken windows or slashed tires)
• Damage from severe weather (such as hail, floods, tornadoes or hurricanes)
• Fire
• Falling objects (tree branches or debris)
• Hitting an animal (for example, a deer crossing the road)

These situations could leave you with expensive repair bills or a stolen car. Comprehensive auto insurance helps pay for these losses, up to your car’s current market value, minus your deductible. It’s an optional coverage, but can be required by lenders or leasing companies to protect their financial interest in your vehicle if you have an auto loan or lease agreement.

Deciding if you need comprehensive coverage

Should you get comprehensive car insurance? The answer depends on your situation. Ask yourself the following questions before adding comprehensive coverage:

Let’s break these points down:

• Vehicle value and repair costs. Insurance companies typically use your car’s actual cash value (ACV) to pay claims. If you drive a newer or higher-value car, the potential loss from theft or severe damage could be significant. On the other hand, if your car is older and not worth as much, compare the total cost of comprehensive insurance (premiums plus your deductible) with your car’s payout value. For lower-value vehicles, the potential insurance payout might not be much higher than the cost of the premium itself.
• Local risks and your parking routine. Do you live in an area where car theft, vandalism or severe weather is common? For example, some cities have higher rates of auto theft or storm damage. Cars parked on the street are often at higher risk than those parked in a garage or private driveway. Knowing your neighborhood’s risks can help you decide if the value of comprehensive car insurance is right for you. Additionally, taking proactive steps to mitigate risks, such as parking in a secure garage, installing anti-theft devices or using weather protection covers can help lower the chances of damage or loss.
• Your personal finances and risk tolerance. Your deductible is what you pay first before insurance pays a claim. Higher deductibles usually mean lower premiums, but a larger sum to pay if your car is stolen or badly damaged. If unexpected costs could strain your budget, comprehensive insurance can help cover expenses for a manageable premium.

What if you’re financing or leasing a vehicle?

Almost all lenders and leasing companies require comprehensive insurance (and collision coverage) for the duration of your loan or lease. This protects their investment in the vehicle if something goes wrong. Once you fully own your car, you can decide whether to keep the coverage.

Is comprehensive insurance worth it for you?

Deciding if comprehensive auto insurance is worth it depends on how you answer the following:

• Do you want to protect your car from storms, theft or vandalism?
• Would replacing your car or paying for repairs after a fire or flood be difficult financially?
• Do you live in a place with higher possibilities of natural disasters, car thefts or animal collisions?

If you answered “yes” to any of these, comprehensive coverage might make sense for your circumstances. For older cars with a lower value, you may choose to skip comprehensive insurance and rely on your savings if you face a loss.

Finding the right balance for your budget

Remember, you can usually choose your deductible for comprehensive claims. A higher deductible can lower your premium, but it increases what you pay if you have a claim. Getting quotes for different deductible amounts helps you find an option that fits your needs and budget. If you want more guidance, an insurance agent can help explain options for your situation.

Weighing the risks and your comfort level

Even though it is not required, comprehensive car insurance isn’t just about meeting legal requirements – it’s about feeling secure. Protecting your vehicle means safeguarding your investment and preventing a major disruption in your daily life.

Ready to explore your options?

If you’re still asking, “Do I need comprehensive car insurance?” or wondering “Is comprehensive insurance worth it?”, consider the unique factors in your life. An insurance agent can help you compare options and assist in exploring questions like “Do I need comprehensive insurance?” and “Should I get comprehensive car insurance if my car is older?”

You can get an auto insurance quote now, or give us a few details and a State Farm® agent will reach out to you.