AIC insurance covers damage to your car from events outside your control

AIC insurance — also called comprehensive coverage — pays for damage to your vehicle caused by things other than a collision. This includes theft, weather, vandalism, hitting an animal, or falling objects. If a tree branch falls on your parked car, hail dents the hood, or someone breaks your window, AIC insurance covers the repair or replacement cost, minus your deductible.

AIC stands for "all inclusive coverage" in some regions, though the exact name varies by insurance company and state. What matters is understanding what it actually covers and what it does not. AIC insurance does not cover damage from a crash with another vehicle or object — that is collision coverage, which is separate. It also does not cover wear and tear, maintenance, or damage from driving through deep water (flood coverage is its own category in most policies).

Most lenders require you to carry AIC insurance if you have a car loan or lease. If you own your car outright, it is optional, but many people choose it anyway because the cost is usually low compared to the protection it offers.

Key Takeaways

  • AIC insurance covers theft, weather damage, vandalism, and animal strikes, but not collisions or normal wear.
  • Your deductible — typically $250 to $1,000 — is what you pay out of pocket before the insurance pays the rest.
  • Lenders usually require AIC coverage if you are financing or leasing a vehicle.
  • The cost of AIC insurance varies by your car's age, value, location, and your driving history, but is often $15 to $30 per month.

What AIC insurance actually covers

AIC insurance covers specific, sudden events that damage your car. Theft is the most straightforward: if someone steals your vehicle or breaks in and takes parts, AIC pays to replace or repair it. Weather damage includes hail, wind, lightning, and falling trees or branches. If a storm damages your car while it is parked, AIC covers the repair.

Vandalism is covered — broken windows, slashed tires, spray paint, or intentional damage by another person. Animal strikes, usually called "comprehensive" damage in policy language, cover hitting a deer, moose, or other animal on the road. Falling objects like signs, power lines, or debris from other vehicles are also covered.

One common point of confusion: if you hit a pothole and damage your wheel or suspension, AIC does not cover it. That is considered normal road hazard damage. Similarly, if you drive through a flooded road and your engine floods, standard AIC does not pay — you would need separate flood or water damage coverage, which is often only available in certain states or through specialized policies.

What AIC insurance does not cover

AIC insurance does not cover collision damage. If you hit another car, a telephone pole, a guardrail, or any object you strike while driving, that is collision coverage, not AIC. This is a critical distinction because many people assume comprehensive coverage means "everything," when it actually means "everything except crashes."

AIC also does not cover damage from normal use: worn brake pads, a dead battery, a blown transmission, or rust. These are maintenance issues, not sudden damage events. Damage from driving through deep water or flooding is usually excluded from standard AIC policies, though some insurers offer water damage riders in high-risk areas.

If you cause damage to someone else's property — their fence, mailbox, or car — that is liability coverage, not AIC. AIC only covers damage to your own vehicle.

How your deductible works with AIC claims

When you file an AIC claim, you pay a deductible before the insurance company pays the rest. Common deductibles are $250, $500, or $1,000, though you can choose a lower or higher amount when you buy the policy. If a hailstorm causes $3,000 in damage and your deductible is $500, you pay $500 and the insurance company pays $3,000.

Choosing a higher deductible lowers your monthly premium — sometimes significantly. A $1,000 deductible might cost $5 to $10 less per month than a $250 deductible. The trade-off is that if you do have a claim, you pay more out of pocket. If you rarely file claims and want to lower your monthly cost, a higher deductible makes sense. If you are worried about affording a large out-of-pocket payment, a lower deductible is worth the extra monthly cost.

Some insurance companies offer a $0 deductible for certain types of claims — for example, glass damage — but this is less common and usually costs more per month.

How much AIC insurance costs

The cost of AIC insurance depends on several factors: your car's age and value, where you live, your driving history, and the deductible you choose. A newer car with a lower deductible in an urban area will cost more than an older car with a higher deductible in a rural area.

In general, AIC coverage costs between $15 and $30 per month for most drivers, though this varies widely. Older cars cost less to insure because they are worth less — if your 15-year-old car is stolen, the insurance company pays out less money. Newer or luxury vehicles cost more. If you live in an area with frequent hail, theft, or vandalism, your premium will be higher.

Your driving history also affects the price. Drivers with accidents or violations on their record pay more for all types of coverage, including AIC. Some insurers offer discounts for bundling AIC with other coverage, paying your bill in full upfront, or maintaining a clean driving record for several years.

When you need AIC insurance and when it is optional

If you have a car loan or lease, your lender almost certainly requires you to carry AIC insurance. The lender has a financial stake in the car — if it is stolen or totaled, they lose money — so they require you to protect it. Your loan documents will specify the minimum coverage you must maintain.

If you own your car outright with no loan, AIC is optional. You can choose not to carry it and save the monthly premium. However, many people choose to keep it anyway because the cost is low relative to the risk. If your car is stolen or damaged by weather, you would have to pay for repairs or replacement entirely out of pocket. For most people, that risk is not worth the $15 to $30 monthly savings.

The decision also depends on your car's value and your financial situation. If your car is worth $2,000 and you have $5,000 in savings, losing the car would be painful but manageable. If your car is worth $25,000 and you have limited savings, AIC insurance is a reasonable safety net.

How to file an AIC claim

If your car is damaged by an event covered by AIC insurance, contact your insurance company as soon as possible. Most insurers have a claims phone line or online portal where you can start the process. You will need to describe what happened, provide the date and location, and answer questions about the damage.

The insurance company will assign an adjuster to inspect the vehicle and estimate the repair cost. In some cases, you can take your car directly to a repair shop and the insurer will work with the shop. In other cases, the adjuster inspects first and then approves repairs. Once the claim is approved, you pay your deductible and the insurance company pays the rest directly to the repair shop or to you, depending on your policy.

Keep documentation of the damage — photos, police reports (if theft or vandalism), and receipts for any temporary repairs. This speeds up the claims process and helps the adjuster understand what happened.

Frequently Asked Questions

Does AIC insurance cover hitting a deer?

Yes. Hitting an animal is considered comprehensive damage and is covered by AIC insurance. You pay your deductible and the insurance company covers the repair cost. Some insurers call this "animal collision" to distinguish it from a crash with another vehicle.

What is the difference between AIC and collision coverage?

AIC covers damage from events you do not cause — theft, weather, vandalism, animal strikes. Collision covers damage from crashes with other vehicles or objects. If you hit a parked car, that is collision. If a tree falls on your car, that is AIC. Most people with car loans carry both.

Can I lower my AIC premium without dropping coverage?

Yes. Raising your deductible from $250 to $500 or $1,000 lowers your monthly cost. You can also ask your insurer about discounts for bundling policies, paying in full upfront, or maintaining a clean driving record. Some companies offer lower rates for safety features like anti-theft devices.

Does AIC cover damage from a pothole?

No. Pothole damage is considered a road hazard and is not covered by standard AIC insurance. It falls under normal wear and tear. Some insurers offer optional road hazard coverage, but you would need to add it separately and it costs extra.

What happens if my car is totaled by hail?

Your insurance company will assess the damage and determine if the car is a total loss — meaning the repair cost exceeds a certain percentage of the car's value, usually 70 to 80 percent. If it is totaled, the insurer pays you the car's current market value minus your deductible. You then own the damaged car and the insurer may sell it for parts.