Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."

Frequently Asked Questions

"What Is Comprehensive Coverage?"


Comprehensive coverage can be a very important component of your auto insurance policy. Comprehensive coverage is not liability coverage like what is mandated by the states designed to protect others and their property. Nor is it like Collision coverage that is designed to repair or replace your car in the event you are involved in an accident with another vehicle or another object.  It is insurance covering physical damage to your auto caused by incidents other than a loss covered by collision insurance. Losses caused by theft, vandalism, fire, weather, animal damage and other moving objects are all examples of incidents that would be covered with comprehensive coverage.


Things to consider:

    • While collision coverage cannot be added to your auto policy without adding comprehensive coverage, comprehensive coverage can be added without adding collision coverage.
    • If you have an auto loan or lease, the lender or leasing company actually holds title to your auto.  Because of this, they will normally require you to carry comprehensive coverage to protect their interest…They require it, but you pay for it!
    • Since a car can have significant value, it can represent a good portion of your financial net worth. If it is damaged or totaled, repairing or replacing without coverage could cost you tens of thousands of dollars and have a major impact on your financial net worth.
    • If your car is not worth much due to age and condition, it may not be worthwhile paying for collision coverage, since your insurance company will only pay you current market value in the event of a loss.



Peggy and Dan were driving through the hills to see a college basketball game in rural Moraga, CA, when they hit a deer. They were happy to see that the deer was uninjured as it quickly scampered away. However, they were equally unhappy when they saw the damage to their car. Fortunately for them, they did have comprehensive coverage. The repair costs of nearly $8,000, minus a small deductible, were covered by their insurance company.