What is Comprehensive?
Comprehensive insurance is a type of auto insurance that covers damages to your vehicle that are not caused by a collision. It is an optional but essential coverage in many personal and business auto insurance policies. Unlike liability insurance, which covers damage to other’s property or injuries you cause in an accident, comprehensive insurance protects your vehicle from risks that are generally out of your control.
Common examples of what comprehensive insurance covers include theft, fire, vandalism, natural disasters (like hailstorms, floods, or earthquakes), falling objects, and damage caused by animals. For instance, if a tree branch falls on your car during a storm or a break-in damages your vehicle, comprehensive insurance would typically cover the cost of repairs minus the deductible.
Comprehensive coverage can be particularly valuable in personal auto insurance for people who live in areas prone to extreme weather, wildlife, or high vehicle theft rates. In business insurance, companies that own fleets of vehicles often add comprehensive coverage to protect their assets, as unexpected damages could disrupt business operations.
While comprehensive coverage helps cover many non-collision-related damages, it’s important to note that it does not include wear and tear, mechanical breakdowns, or damages caused by hitting another vehicle or object, which would fall under collision coverage. For a well-rounded auto insurance policy, both comprehensive and collision coverage are recommended.