(800) 253-1482What Is Comprehensive Insurance in Texas?
Summary: Comprehensive insurance protects your vehicle against weather related perils. If you live in an area where your vehicle is at risk or exposed to the elements, a comprehensive auto insurance policy can help you avoid large out-of-pocket costs. You’ll need to pay your deductible before receiving reimbursement. Understanding your risks and personal factors is key to choosing the right policy. Estimated Read Time: 6 mins
Table of Contents:
- What Does Comprehensive Insurance Cover?
- Car Insurance Comprehensive Deductible and Limits
- Comprehensive Car Insurance Cost
- How Much Comprehensive Coverage Do I Need?
- Is Comprehensive Insurance Full Coverage?
- When To Drop Comprehensive Coverage?
- Get Your Texas Comprehensive Car Insurance Quote
Comprehensive insurance goes beyond standard auto insurance requirements, protecting your vehicle against a range of unforeseen events not covered by liability or collision insurance.
While liability coverage addresses damages caused by others in accidents, it may not protect against theft, damage from fallen objects, or other random incidents. Comprehensive coverage steps in to fill these gaps, providing a safety net for scenarios beyond typical accidents.
Understanding how much comprehensive auto insurance you need is key. It’s also important to know if you can benefit or if you may be required to have such coverage. Below, we’re breaking down comprehensive auto insurance and how it can help you protect your vehicle from the unexpected.
What Does Comprehensive Insurance Cover?
Comprehensive auto insurance covers random acts outside of an accident with another motorist that causes a loss to your vehicle. However, it isn’t blanket coverage. Some common examples include:
- Accidents involving animals such as hitting a deer or livestock.
- Civil disturbances such as riots or vandalism.
- Damage from rocks and other objects which are thrown from other vehicles.
- Damage from various weather events including earthquakes, floods, hail, lightning, storms, and wind.
- Explosions and fire damage.
- Falling trees, branches, or other various objects.
- Grand theft auto.
- Glass damage including your windshield.
If there is damage to your vehicle not involving an accident with another vehicle or piece of property, there’s a good chance you are covered with comprehensive insurance. Still, it is always good to review what your comprehensive insurance does not cover as well:
- Damage from an accident while driving.
- Damage to another driver’s vehicle while driving.
- Hit-and-run situations.
- Loss of income after an accident.
- Medical or legal expenses as a result of an accident.
- Personal property inside of your vehicle that is damaged and/or stolen.
- Pothole damage.
- Underinsured motorists who lack sufficient coverage for your accident.
Comprehensive car coverage is for the unexpected damages your vehicle may face. For motorists looking to protect against other types of perils, it is important to speak with your auto insurance agent.
Car Insurance Comprehensive Deductible and Limits
Just like a collision policy, comprehensive insurance coverage has a deductible. This is the amount you must pay before receiving reimbursement from your insurer.
If you chose a $1,500 deductible, your monthly premium is usually lower than if you had the same policy with a $500 deductible. Should you incur a loss that would cost $2,000 to repair, you’d need to pay your deductible first, and then you would receive the difference to help cover repairs.
For example, with the $1,500 deductible, you’d receive $500 from your insurance company, while choosing a policy with a $500 deductible would provide $1,500 in compensation.
Higher deductibles work best for drivers who have a claims history with fewer claims. If you are prone to suffering losses per the perils comprehensive insurance protects you from, a lower deductible could save you money in the long run even if you pay more in premiums.
It’s also important to look at personal factors when choosing deductibles. For example, if you are a driver with lots of trees posing a threat to your vehicle, auto insurance with comprehensive coverage may make more sense than a driver who keeps their vehicle in a garage away protected.
Drivers less prone to submitting a claim should lean on higher deductibles but prepare for the out-of-pocket costs that come with such losses. If you are more likely to submit a claim, lower deductibles can help offset such burdens and keep you better protected.
Comprehensive Car Insurance Cost
According to the Insurance Information Institute (III) and the National Association of Insurance Commissioners (NAIC), the average cost for comprehensive coverage in Texas is $269.90 a year for drivers.
Data from the III and ISO®, a Verisk Analytics® business also shows that the average comprehensive insurance claim equated to $1,995 in 2020.
Calculating the cost of your comprehensive coverage insurance is similar to any other policy. The amount you pay in premium comes down to determining the risk you pose as a client.
Carriers all assess risks differently meaning that the different factors looked at by a company can result in different rates for the same driver and coverage because of their method of calculation. But remember, comprehensive coverage is also affected by both the amount you pay in deductible and the value of your vehicle.
Furthermore, the value of your vehicle affects the price of your premium because your compensation is typically based on the Actual Cash Value (ACV) your vehicle is worth.
This means that if you were to incur a loss to an older model vehicle, such as a tree falling on your car in your driveway, and you were to want a new year model, your coverage will not cover the entire cost of replacement. Any additional funds needed would come from your pocket.
How Much Comprehensive Coverage Do I Need?
You need to enroll in enough comprehensive car insurance coverage to help you restore a major loss. This is typically coverage used with newer, financed, and/or leased vehicles. Be sure to enroll in a level of coverage that doesn’t break the bank in premiums but protects you from major losses.
Is Comprehensive Insurance Full Coverage?
While car insurance with comprehensive coverage is a part of full coverage, they are not the same. Full coverage combines liability, collision, and comprehensive into one, whereas comprehensive is a standalone policy that can help drivers protect against more than just liability.
When To Drop Comprehensive Coverage?
Many people say that after five or six years, you can drop comprehensive coverage on your vehicle. However, it’s important to realize that this is different for everyone. Here are a few factors to consider:
- Are you leasing your vehicle?
- Do you still finance your vehicle?
- Is there a legitimate risk of weather-related perils that can damage your vehicle?
- Regardless of age, does your vehicle still maintain its value?
- Can you afford to sustain a major loss because of a non-accident-related incident to restore your vehicle?
Basically, when you own your vehicle and can either afford to restore it after a major loss, have a vehicle that isn’t worth the amount you would pay in premium and deductible to restore it, or a combination of the two, you may want to consider dropping comprehensive insurance.
Remember, these factors and more are going to look different for each driver. Be sure to speak with a licensed insurance agent before making significant changes to your auto policies.
Get Your Texas Comprehensive Car Insurance Quote
Freedom Insurance Group helps drivers throughout Texas save money on their auto insurance policies. Whether you are looking to stay legal with minimal coverage, prepare for the unexpected through comprehensive coverage, or looking for any other coverage option such as collision, we’ve got you covered.
Working with more than 25 top-rated auto insurance providers, our average client saves 40% on their car insurance premiums. We understand that each client’s needs are different, and we work hard to tailor your coverage to these needs. This allows you the protection you deserve all while saving money.
Our agents can also bundle your home insurance coverage with your auto insurance to provide maximum savings. Get your free auto insurance quote or contact us today to find the right comprehensive insurance for your needs.
