Comprehensive car insurance covers repairing or replacing your vehicle if it’s lost or damaged due to non-traffic-related incidents. These include man-made events like arson, theft, vandalism, and natural disasters such as hailstorms and hurricanes. Often referred to as “other than collision” coverage, it does not apply if your car collides with another vehicle or object.

This type of insurance is not mandatory. However, if you’re financing or leasing your vehicle, lenders, banks, and dealerships typically require it. If you own your car outright, purchasing comprehensive coverage is entirely optional.

Auto insurers often bundle comprehensive insurance with collision coverage, but some allow you to purchase one without the other. However, neither can be obtained as standalone policies; they must be added to your existing car insurance, including all state-mandated coverage.

Comprehensive insurance extends beyond cars to cover other motorized vehicles, including motorcycles, boats, and yachts. The policy payout is based on your vehicle’s actual cash value (ACV), representing its market value at the time of the loss.

While comprehensive coverage provides peace of mind against unforeseen events, it’s important to weigh its cost against the value of your vehicle. This policy might not be financially practical for older cars with low market value. Understanding your options and needs will help you make the best choice for protecting your vehicle.