Auto comprehensive insurance is not the same as full coverage car insurance even though its name sometimes unintentionally misleads some consumers. What does comprehensive insurance cover? Do you need comprehensive coverage? Auto comprehensive insurance is not required in any U.S. state although it is a good idea to have under specific circumstances. 

What are some of the circumstances where having comprehensive insurance coverage is a good idea? When you still have a loan on your vehicle and do not yet own it outright your finance company might require you to carry full coverage car insurance. Comprehensive coverage is included in full coverage policies, which protect your lender’s asset in the event of an accident or other damage.

Do You Need Comprehensive Coverage?

Where and how far you drive also helps determine if you need comprehensive coverage and how much. Do you drive a lot at night or on roads with frequent deer crossings or dangerously high winds? Do you have a long commute to and from work or travel to different cities each week? 

When you drive significant distances or on dangerous roadways in your car comprehensive insurance is an extra element of protection against unexpected damages or sheer bad luck.

The value of your vehicle also helps determine how much comprehensive coverage you need.

Comprehensive auto insurance covers damages caused by generally anything other than a collision and is often affordably priced. If the value of your vehicle is at least ten times more than the cost of your comprehensive coverage premium, it is likely worth purchasing the coverage. 

Another way of assessing the worth of comprehensive coverage costs is to subtract your comprehensive deductible from the overall value of your vehicle. Next subtract the resulting sum from the total amount you are paying for your entire auto insurance policy. If the final sum is a negative number, the cost of your comprehensive insurance is not worth the price for you.