Comprehensive Insurance
What Does Comprehensive Insurance Mean?
Comprehensive insurance is auto insurance that provides indemnity or benefits to the policyholder for damage to their car caused by factors other than collision, such as theft, fire, external explosion, malicious acts, weather, and other risks.
Insuranceopedia Explains Comprehensive Insurance
Alongside liability and collision insurance, comprehensive insurance is one of the three main components of a car insurance policy. While liability and collision coverage are typically required by state law, comprehensive coverage is optional for vehicle owners. However, for individuals financing their vehicles, loan companies may require them to purchase comprehensive insurance. Even without such a requirement, it may be prudent to consider this coverage depending on the area and associated risks. Like collision insurance, comprehensive coverage includes a deductible.
