Comprehensive Coverage Explained

An automobile insurance policy contains coverages that pay for certain types of damage and injury as the result of an accident. One such coverage is called comprehensive which will pay for non-collision damages, comes in several limits of coverage and is generally required for certain bank loans including leases. Comprehensive coverage is an important part of an insurance policy that no driver should be without.

Comprehensive coverage that is provided on an automobile insurance policy will pay for damages that were the result of a non-collision event. These types of events can include falling objects, storms, theft, vandalism and many others that are not specifically excluded in the policy. When traveling on the highway or rural road the most common type of damage done to a vehicle is caused by hitting a deer. However, in the event a vehicle is ever stolen or vandalized it is the comprehensive coverage part of the policy that will pay for the damage. When making a comprehensive claim on an automobile policy the deductible will need to be paid first.

Each coverage that is contained on a automobile policy has specific limits or amounts that can be selected. The coverage amount or limit is the maximum the policy will pay out in the event of an accident. Typically, coverage amounts or limits are available in a range starting at $20,000 or $40,000 and going up to $500,000 or more depending how much coverage is needed. Depending on how old a vehicle is the amount of comprehensive coverage may not need to be very high or purchased at all. In the event a vehicle is totaled by hitting a deer or destroyed by fire comprehensive coverage will pay up to the maximum limit on the policy.

Comprehensive is a coverage that may or may not be required by a bank loan but is almost always required when leasing a vehicle. This is because a bank whether providing a loan or a lease usually requires full insurance coverage on a vehicle. Full coverage means that in addition to comprehensive coverage there is adequate coverage for collision and bodily injury as well. This is because a bank that provides a loan becomes a secured interest on the policy. A secured interest means that the bank that is providing the loan is assured that they will continue to receive payment in the event of an accident that causes damages to the vehicle.

Comprehensive just like collision and bodily injury are important coverages that are provided with an automobile insurance policy. In the event that this type of accident happens an automobile insurance policy’s comprehensive coverage will pay for the damages providing any deductible has been paid. An accident can happen at any time and it is important to maintain an adequate amount of coverage on a vehicle.