While comprehensive auto insurance is optional in the eyes of your insurer and the state government, lenders usually require it if you finance or lease a car.

Here's a little more on what comprehensive car insurance will cover, as well as a quick way to see if the coverage is worth the money.

What does comprehensive insurance cover?

Comprehensive insurance protects your vehicle from the following types of damage:

• Thunderstorms, hurricanes, and tornadoes can all produce hail, flooding, and lightning.
• Falling objects, such as tree limbs.
• Fire or explosions.
• Hitting an animal.
• Theft.
• Earthquakes.
• Vandalism or civil disobedience, such as a riot.

In many states, comprehensive auto insurance also covers windshield glass repair.

What’s not covered by comprehensive car insurance:

• You cause harm or injury to others. These events are covered by liability insurance, which is required in all states except Virginia and New Hampshire.
• Your wounds. Comprehensive insurance only covers vehicle damage. Your injuries may be covered by the insurance of the other driver (if they are at fault) or by your own health insurance (if you are at fault).
• Collision damage to your vehicle. If the accident was your fault, collision insurance would cover it as long as you have it on your policy. When another driver is at fault in an accident, their insurance will usually cover the damage to your vehicle.

Only the total value of your vehicle, less your deductible, will be covered by comprehensive car insurance. The less valuable and older your car is, the less benefit you will receive from the coverage.

How your comprehensive deductible works

Most comprehensive car insurance policies have a deductible, which is a predetermined amount deducted from a claim check — typically $500 to $1,500.

Assume your car was hit by a hailstorm, causing $1,500 in damage to the roof and hood. If you had a $500 deductible and filed a comprehensive claim, your insurance company would pay $1,000 to repair the damage (the total repair cost minus your deductible). If the hail destroyed the vehicle, your insurer would deduct $500 from the car's pre-storm value and send you a check for that amount. For example, if your car was worth $15,000 before being totaled in a hailstorm, your insurer would pay out $14,500 (the value of your car minus your $500 deductible).

When the cost of repairs exceeds the value of your vehicle, or even approaches it in some cases, the insurer declares it totaled. You could still choose to repair your vehicle, in which case your insurer would deduct the salvage value from your payout. On the title, the car would also be marked as salvaged. Some auto insurance companies will not cover salvage title vehicles or will charge a higher premium to do so.

Raising your deductible can help you save money on comprehensive auto insurance. Just make sure you have that much money on hand in case of an emergency.

Is comprehensive insurance full coverage?

When purchased together, comprehensive insurance is one of several types of coverage that are commonly referred to as full coverage insurance. Full coverage insurance also includes liability and collision insurance, as well as uninsured motorist coverage in some states.

How much does comprehensive coverage cost?

According to the National Association of Insurance Commissioners, the average annual cost of comprehensive coverage in the United States was around $172 in 2019, the most recent year for which data is available. This figure includes discounts and may account for group policies, which are typically less expensive than policies purchased online.

Keep in mind that you cannot purchase comprehensive coverage for a car on its own. In many cases, you can't buy it unless you have collision coverage, and vice versa. This could be because your lender requires both, or because your insurer requires one in order to purchase the other.

Do you need comprehensive insurance?

As the value of your car depreciates over time, comprehensive coverage becomes less useful. This is due to the fact that the coverage will never pay out more than the vehicle's value less your deductible. So, if you don't have a financing contract that requires it, you may decide to forego comprehensive insurance at some point.

To determine when to drop comprehensive coverage, consider the actual cash value of your vehicle as well as your deductible. You're paying for insurance that won't pay out if you have a $1,500 comprehensive deductible on a $1,500 vehicle.

Then think about how much you're paying for insurance. Comprehensive coverage will not benefit you if the cost of the policy and deductible exceeds the value of your car.

Here’s the math:

1. Subtract your comprehensive deductible from the value of your vehicle. (If you can easily pay this amount without filing an insurance claim, you could reduce your coverage.)
2. Subtract the cost of your comprehensive coverage for the policy period, which is usually six months.

If you notice:

• A negative number, you're paying more for comprehensive coverage than it's worth.
• A small positive number, comprehensive coverage can still help you, but the potential claim check is small.
• A large positive number, or an amount you wouldn’t be able to come up with in an emergency, keeping comprehensive coverage makes sense.

Even if you decide that comprehensive insurance is worth it for the time being, you should revisit this calculation as your car ages and you get new car insurance quotes.

The bottom line: Is comprehensive insurance worth it?

Not everyone has the option of purchasing comprehensive car insurance. It's almost certainly required if you're leasing or financing your vehicle. However, if you could forego the coverage, consider the value of your vehicle as well as the following pros and cons: