Liability insurance is the minimum protection required by law in most states, but liability won't protect you from damage to your vehicle from vandalism, natural disasters, or other non-accident situations. If you want broader coverage for your vehicle, consider adding comprehensive coverage to your policy.

How Does Comprehensive Insurance Protect My Vehicle?

With a comprehensive auto insurance plan, your insurance benefits are paid regardless of how the damage was caused (an accident, a break-in, or natural disaster). There is usually one exception, however. When the claim includes an overturned car, comprehensive insurance does not apply in many states. Collision is generally considered the applicable coverage in those circumstances, but check with your agent for specifics in your area.

Is Comprehensive Insurance for Everyone?

If your car has little or no Kelley Blue Book value, your premium and deductible may exceed the vehicle’s Blue Book value. Many people decline comprehensive insurance for this reason, but the extra protection may be useful in several situations:

• You are still making payments on your car
• You have made “after market” additions or improvements to the vehicle
• You frequently drive near deer crossings or any area where you risk hitting a wild animal
• You reside in a high-crime area
• Your home is in a flood plain or other disaster-prone location

How Do I Choose the Right Amount of Comprehensive Insurance?

The amount of comprehensive insurance coverage should be based on these factors:

• Current value of your car, including the age, condition, and after market extras installed such as CD/DVD players, luxury wheels, or GPS systems
• Cost of a replacement vehicle or extras damaged or stolen
• The amount you can afford to pay out of pocket, also known as the deductible. You should be able to afford to pay the amount of your deductible at any time. If you can’t afford a sudden $1,000 expense, lower the deductible to fit your budget. Your payments will increase, but the savings in the aftermath of a claim are worth the expense.

What Factors Change the Price of My Coverage?

Insurance prices are not based on a flat rate. Providers take your age, the type and age of the car, additional drivers, and how you use the vehicle into account. Your final costs can be affected by past claims, driving record, and factors such as:

• Location:  Higher insurance rates may apply in high crime areas, flood plains, and other “at-risk” areas.
• Your deductible: Higher deductibles mean lower monthly premiums.
• The “good customer” factor: Multiple policies with the same carrier can bring discounts. Do you carry homeowner or renter’s insurance, life insurance and car insurance with the same provider? You may be entitled to a multi-line discount.
• “Responsible driver” discounts: Installing a car alarm or anti-theft device can often lower your premiums

Premiums vary widely from state to state. In most cases, the best policy is to directly ask your agent what discounts you may be eligible for and how you can lower your rates. The answers may surprise you. Do you have a traffic ticket on your record? You may be eligible for a new rate by attending a driver’s safety course. Has a recent birthday put you into a different age bracket? You may have a price break coming. If you have a teenage driver on your policy who has gotten their own insurance, your costs may be lowered be removing the additional driver. When in doubt, always consult with your insurance agent.