When it comes to protecting your vehicle, unexpected events can happen at any time. Whether it’s a fallen tree branch during a storm or an encounter with wildlife on the road, these incidents can lead to costly repairs that standard liability insurance won’t cover. Understanding how comprehensive car insurance works can save you from being stuck paying the entire bill after such mishaps.
If you’re a Georgia driver looking for peace of mind and broader protection, this blog will guide you through the benefits of comprehensive coverage. Learn how comprehensive coverage helps cover damages caused by unforeseen incidents and why it might be the right choice to safeguard your vehicle and your wallet.
What Does Comprehensive Car Insurance Cover in Georgia?
Comprehensive car insurance is one of the key coverage types, along with collision coverage, that you can add to your auto policies. Comprehensive insurance protects your car against damage caused in a non-collision event like weather damage, natural disasters, vandalism, theft, and accidents with animals, while collision coverage applies when your vehicle hits another vehicle or object.
Non-collision incidents include damage caused by hail, wind, floods, lightning, earthquakes, fire, tornadoes, hurricanes, and other extreme weather events. Theft and vandalism are included as well, in which you’ll be reimbursed if your car is stolen or intentionally damaged.
Not only does comprehensive insurance cover damage to your car if someone breaks into it, but it also protects you if the car itself is stolen or the thieves steal parts off the vehicle, like the catalytic converter. Catalytic converter thefts have become such a problem in Georgia that the House of Representatives recently passed a bill to make it illegal for anyone other than a registered metal recycler to buy, sell, possess, or transport a detached catalytic converter. The cost to replace a catalytic converter ranges from $945 to more than $2,000.
What Doesn’t Comprehensive Insurance Cover in Georgia?
Not all occasions where your car is damaged are covered under comprehensive car insurance. Some may instead fall under your collision or liability insurance coverage. Below are things that comprehensive insurance does not cover, including normal wear and tear, such as worn tires or faded paint.
- Most collisions – If your vehicle is involved in a collision with another vehicle or you swerve to miss that deer on the road and hit a tree instead, those accidents are not covered by your comprehensive insurance. Any traffic collision, whether it is with a fixed object like a tree or with another vehicle, isn’t covered under comprehensive car insurance in Georgia. You would need to carry collision insurance to cover damages to your car from those types of accidents.
- Personal property – You’ll be covered under your comprehensive car insurance for damage to your car during a theft, but it won’t cover any personal items that are stolen from the vehicle. Coverage for personal property stolen from your car is usually provided in your renter’s insurance or homeowner’s insurance policy.
- Injuries and medical expenses – Comprehensive insurance doesn’t cover any injuries or medical bills that result from an accident. Your standard liability car insurance provides that coverage.
- Legal expenses and property damage liability – If someone sues you after you get in an accident with them, or if your vehicle caused damage to another person’s vehicle or property, you’ll also be protected by your liability insurance, not your comprehensive insurance coverage.
- Wear and tear – Normal deterioration of your vehicle over time, such as worn tires, faded paint, or mechanical breakdowns, are not covered by comprehensive coverage.
Do You Need to Carry Comprehensive Car Insurance in Georgia?
In Georgia, drivers must carry at least the state-mandated minimum liability insurance, which includes $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage liability.
While comprehensive insurance is not required by Georgia law, it may be mandatory if you are leasing or financing your vehicle. In such cases, your lender or leasing company will often require comprehensive coverage as part of a full coverage auto insurance policy. Various providers offer comprehensive car insurance, so it’s wise to compare quotes from multiple providers to find the best policy and pricing. Buying comprehensive coverage can help you save money in the long run by protecting you from costly repairs or replacement.
How Much Comprehensive Insurance Should You Carry in Georgia?
Comprehensive car insurance coverage works differently than liability car insurance coverage in that you don’t specify how much coverage you want to carry. Instead, you select the policy’s deductible, which is the amount you will pay out of pocket before the insurer pays for covered losses. Comprehensive coverage typically has a deductible, similar to collision coverage. Deductibles range anywhere from $100 to $2,500. The lower your deductible, the higher your rates will be for comprehensive insurance.
For example, if the deductible on your comprehensive policy is $500 and the damage to your vehicle will cost $2,000 to repair, your insurer would pay $1,500 after you pay the $500 deductible. According to the Insurance Information Institute, the average comprehensive car insurance claim is $1,995.
Where comprehensive car insurance comes in handy is if your car is totaled from the damage. An insurer typically declares a vehicle totaled when the cost to repair it exceeds its value. The maximum payout, or coverage limit, for comprehensive car insurance is generally the Actual Cash Value (ACV) of your car at the time of loss, minus your chosen deductible. If you have a $500 deductible on a car valued at $10,000 and it gets totaled, the insurer will send you a check for $9,500, which equates to your car’s value minus your $500 deductible. It’s important to understand your policy’s limits and coverage limits to ensure they align with your financial needs in the event of a claim.
How Much Does Comprehensive Car Insurance Cost?
The average annual cost of comprehensive car insurance in Georgia is about $220. The average annual cost for a full-coverage insurance policy, which includes comprehensive coverage as part of car insurance, is approximately $2,700 in the U.S. The cost of comprehensive car insurance in Georgia depends on several factors, including your deductible, age, and overall driving and risk environment in Georgia. The higher your deductible, the lower the number you’ll pay for comprehensive insurance.
However, you should remember that you can’t buy comprehensive insurance on its own. You will still need to have the minimum liability coverage required in Georgia. Also, many insurance companies won’t sell you comprehensive insurance without collision insurance. The two coverages usually come as a package deal.
What is the Difference Between Comprehensive and Collision Insurance?
Although both comprehensive and collision are additional insurance coverages that are usually bundled together, they differ in what each policy covers for your own vehicle. Comprehensive insurance covers those “bad luck” incidents, such as weather, theft, vandalism, falling objects, or vehicle caused damage, that damage your vehicle. Collision insurance, on the other hand, covers damage caused to your car from a traffic collision with another vehicle or a fixed structure.
It’s important to know that neither comprehensive nor collision insurance covers injuries that occur in an accident. That is covered under your liability coverage and additional medical coverage, such as MedPay or Personal Injury Protection (PIP).
Examples of a Comprehensive Insurance Claim
- Your car hits a bird and damages your front end. This is an example of hitting an animal, which is covered by comprehensive car insurance rather than collision coverage.
- Hail dents the roof of your car.
- A thief steals the catalytic converter from your car.
- A tree branch falls onto your parked vehicle during a storm.
To file a comprehensive claim, you typically need to submit documentation and a report to your insurance provider, and your deductible will apply.
Examples of a Collision Insurance Claim
- Your car is damaged in a hit-and-run.
- You hit a pole after swerving to avoid a raccoon.
- Your car slips on an icy road and hits a tree.
Who Should Get Comprehensive Car Insurance in Georgia?
The Insurance Information Institute estimates that about 60 percent of drivers add comprehensive coverage to their car insurance policy. The extra coverage is a good idea for many, but it isn’t mandated by law.
If you are still making payments on your car or if you lease your ride, then your lender or the leasing company will most likely require you to carry collision and comprehensive coverage. The additional coverage is optional once your car is paid off in full.
Other drivers who may want to consider comprehensive coverage are those who:
- Live in an area of high crime with vandalism and car thefts.
- Live in a location prone to extreme weather conditions or earthquakes.
- Live in a rural area where there is a higher chance of hitting deer or other animals.
- Can’t afford to pay for repairs or to replace their car if it is damaged.
- Own high-value vehicles or cars where the value of your vehicle is significant.
Individuals with high-value vehicles or those living in areas prone to non-collision incidents, such as theft or natural disasters, may find comprehensive coverage particularly beneficial. Evaluating your personal needs and circumstances is important to determine if comprehensive insurance makes sense for you. It’s a good idea to assess whether the coverage is cost-effective based on the value of your vehicle and whether you can afford to pay for repairs or replacement out of pocket.
As your car gets older, it loses its value and eventually gets to the point where comprehensive insurance may not be necessary. Insurance professionals typically advise drivers to hold comprehensive coverage if the cost of the premium is less than 10% of the car’s market value minus the deductible. So if your car is worth $5,000 and you’re paying a $180 insurance premium on a $500 deductible plan, then it may not make sense to keep comprehensive insurance coverage.
