Comprehensive Car Insurance

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There are many types of car insurance policies and they can include various coverage. Aside from the mandatory coverage, also known as vehicle liability coverage, an auto insurance policy can include a lot of other protection measures. Comprehensive car insurance is one of the most complex types of car insurance as it protects the policyholder against a wide variety of unfortunate incidents. However, contrary to popular belief, this type of car insurance does not protect you from everything. Today we are going to discuss about the people who need this type of insurance as well as the situations covered by it.

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  • Understanding comprehensive car insurance?

Comprehensive car insurance is a type of coverage which protects the policyholder against physical damage which is not related to collisions. In the insurance world comprehensive is often referred to as other-than-collision coverage. The general principles of car insurance state that auto insurance has two major components: liability and physical damage. While the liability coverage is mandatory in most parts of the world, the physical damage coverage is optional. It usually covers the repair costs of a vehicle in case of damages covered by the policy. This coverage has two categories of its own: comprehensive coverage and collision coverage. The collision coverage is used for those situations in which the vehicle collides with an object. The collision coverage does not cover the situations in which the driver has no control over the damages. On the other hand, comprehensive coverage covers most of the damages which are not covered by the collision coverage. This type of insurance usually requires that you first buy the collision coverage but there are certain companies that are willing to sell only the comprehensive coverage.

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  • What does comprehensive car insurance cover?

As we mentioned above, the comprehensive coverage refers to the damages that are not associated with collision. It usually includes: fire, riots, auto theft, hail/water/flooding, wind, vandalism, glass breakage, damages caused by an animal, missiles and falling objects. As you can see, this is a very useful coverage which protects your car from unfortunate events which cannot be predicted or avoided. However, there are some exclusions to this coverage. It does not cover for theft or vandalism caused by family members or even employees. Furthermore the coverage only applies to the car and not the objects that are found in the car. This type of policy does not cover for normal road use damages. You can choose to extend this coverage so that it also protects you when you are driving another car. However, in situations like this the benefits are usually restricted.

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  • Who needs comprehensive car insurance?

This type of coverage is usually bought by people who own cars which are more expensive than $4.000. It is not recommended for old vehicles unless they are classic cars. It is also very useful for people who live in bad neighborhoods and who are susceptible to auto thefts. Last but not least, certain leasing companies require that you buy this type of coverage when purchasing the car.