Comprehensive coverage is just one part of the equation when it comes to full coverage auto insurance. According to Matt Cavanaugh, AVP of Auto Product Development at Grange Insurance, an affiliate of Integrity Insurance, you should have liability, collision and comprehensive coverage to have what is considered full coverage.
Below, we’ll break down how each of these coverages work to provide an insured driver with full coverage and answer other common auto insurance coverage questions.
Full coverage includes liability, collision and comprehensive coverage
Liability coverage
If you’re deemed at fault for an accident, auto insurance covers the cost of property repairs and medical bills you are liable for. Liability coverage is legally required in most U.S. states, and having only liability coverage is considered “minimum coverage” auto insurance.
Collision coverage
If an accident occurs, this coverage will pay repair costs after the policy deductible is paid. You’ll be reimbursed for the value of your vehicle at the time of the accident if it’s deemed a total loss.
Comprehensive coverage (or Other-Than-Collision)
If your vehicle is damaged by something not related to a collision, like fire, hail or theft, this coverage will cover repairs.
Key differences at a glance
| Category |
Liability |
Collision |
Comprehensive |
| What’s covered |
Third party bodily injury and property damage including vehicle damage. |
Cost to repair your vehicle from damage caused by a collision. |
Cost to repair your vehicle from damage caused by a non-collision event such as hitting an animal, weather or vandalism. |
| Common claim examples |
You are texting and rear-end the vehicle in front of you, giving the driver in the other car whiplash. Liability coverage would pay for the injured driver’s medical bills and vehicle repairs. |
You are backing your vehicle up in a parking lot and accidentally hit a pole. Collision coverage would pay for your vehicle’s repairs. |
A hailstorm rolls through and wreaks havoc on your car, which is parked outside. Your car’s windshield is shattered and dents cover your vehicle. Comprehensive coverage covers the cost of getting your windshield replaced and the dents out of your car. |
| When it applies |
You are deemed to be at-fault for the accident. |
When a covered vehicle is in a collision loss. |
Your vehicle is damaged by something not related to collision, like fire, hail or theft. |
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What coverage best fits your needs?
If you are leasing your vehicle or have an auto loan
It’s generally required by your lienholder that you have full coverage or both collision and comprehensive coverage in case of an accident. It may also be a good idea to have gap insurance coverage on a leased vehicle or if you financed your vehicle and have an auto loan.
If you’re in an accident and your vehicle is deemed a total loss, gap insurance covers the difference between what your auto insurance will cover and what you owe on your leased car. You may owe more money than your car is worth if you have a loan or a lease, due to depreciation. If you are in an accident and your vehicle is not repairable, your standard auto insurance policy will only cover the actual cash value of your vehicle—leaving you responsible to cover the difference on your loan or lease.
If you have a newer car
If you have a newer vehicle, you may want to consider having collision coverage at the very least. If you total your car in an accident and are found to be at-fault, you likely won’t be reimbursed if you only have liability insurance, which would only pay for the other party’s repair costs.
If you have an older or lower value vehicle
It may make sense to skip the collision and comprehensive coverage if you have an older vehicle since, in most cases, the reimbursement you would get for a total loss is much lower for older vehicles.
What to consider when building your auto insurance policy
Overall, the right coverage for your vehicle depends on a variety of factors.
“Policyholders should consider the age and value of their vehicle, whether they have a loan or lease, the premium on the policy, and their financial situation. Each situation is different, so we recommend they talk to their independent insurance agent for guidance,” says Cavanaugh.
Find an agent today for help getting the right policy for your auto insurance needs.
References
- U.S. News
- Experian
Meet our insurance expert
Matt Cavanaugh
Matt Cavanaugh is an AVP of Auto Product Development at Grange Insurance, an affiliate of Integrity Insurance, who began his insurance career at Grange in the pricing department before earning his ACAS designation and transitioning into his role on the Personal Lines product team.
He enjoys the problem-solving side of insurance and finds satisfaction in taking complex and conflicting information and finding a way to make everything work.
Connect with Matt on LinkedIn
Coverages described herein may not be available in all states. Please contact a local independent Integrity agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Integrity Insurance policies are underwritten by Integrity Insurance Company, an affiliate of Grange Insurance Company, and Integrity’s subsidiaries. Integrity companies not licensed in Pennsylvania. Not all Integrity companies are licensed in all states.