Comprehensive car insurance is the best auto policy that you can get. It is not a requirement within the country. Each agent will have different policies that have many types of add-ons that you can purchase. The basic coverage is the same across the board, though. 

Money Smart defines comprehensive insurance as an insurance policy that covers any damage to your car, and any damage to another party’s property. It does not matter if you are at fault. It will also cover your car against theft, fire damage, flood damage, and vandalism. 

Let us dig into this a little deeper with a few examples of what could happen if you do not have this type of coverage.

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A fire has broken out in your home that was caused by sparks from a bad electrical circuit board. The fire started in the garage that is attached to the home when the sparks hit some paint and chemicals that were being stored on a shelf. The entire garage is engulfed in flames before the fire fighters can get there and spray it down. 

Your car was parked inside the garage, and your spouse’s car was parked outside, close to the garage door to allow parking for your child. Severe damage has been done to your car, and your spouse has burn marks across the hood and front fenders. Your car is a total loss, having been on fire inside and out. Your spouse has considerable damage to the paint, and possible issues with the wiring since the front headlights were burned by flames. 

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Comprehensive car insurance covers both cars. The cost to replace your car. The labor and materials that it will cost for your spouse’s car. If your policy has rental car coverage on it then you both will get a car to use until you have yours back. If you do not have comprehensive, you will be paying for a new car, repairs, and the cost of the rental car. 


A teenage boy decides that he wants to take a joyride across the territory and your car happens to be in front of him at the time of the urge. He breaks through one of your windows and hotwires the car. He takes it for a drive and ends up getting stuck in a snowbank.

The next morning you realize that your car is gone. You call the local police station just to find out that they had just found it, and that they were having it towed to the yard. You need to go down and file an official report, and then give them enough time to investigate your car before you go pick it up.

With comprehensive insurance your car would be covered. All the damage that has occurred will be repaired. If you do not have this coverage, the repairs come out of your pocket.


You are driving down a back road and your mobile phone rings. You know that you are not supposed to touch it while driving, but you do not see any cars, so you reach over and check to see who messaged you. You quickly read the text and as you look up a car pulls out in front of you from a driveway. Smash! You hit them on the driver’s side as you slam on your brakes.

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If you have comprehensive insurance your car will be fixed. Their car will be fixed. Any property that was in their car will be fixed or replaced. If you have the coverage for a rental car the insurance carrier will cover that cost as well. It does not matter that the accident was your fault. It does not matter why. 

If you do not have comprehensive, you will be paying for the damage to your car, the damage done to their property, and any rental car fees that come up.

Wrap Up

Bottom line is that if you do not have comprehensive car insurance you could be stuck with some huge bills. You might have to dig into your savings, or maybe get a loan to cover all the costs. If you live paycheck to paycheck you might end up going bankrupt. 

Play it safe and get this type of policy. It will give you peace of mind and will keep you from losing everything that you have worked so hard to obtain.