What Does Comprehensive Car Insurance Coverage Mean?

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    • Comprehensive car insurance covers damages to a vehicle caused by vandalism, theft, flood, fire, natural disasters and, in some instances, accidents like hitting a large animal in the road.


    • Benefits paid on a comprehensive claim will cover the repair of damages to the vehicle caused by qualifying events, up to the limits of the policy or the value of the vehicle.


    • Comprehensive car insurance is not required by law; however, it may be required by the finance company that has made the loan on the car. This coverage protects the bank's and the vehicle owner's financial investment. Carrying this type of coverage on newer vehicles is common. Owners of older vehicles of little monetary value often forgo this coverage because the cost of the premiums and deductibles outweigh any benefits that may be paid.


    • Next to collision coverage, comprehensive coverage is likely to be the most expensive auto insurance coverage. The cost of comprehensive coverage depends on several variables including the age of the insured, the value of the vehicle, how far it is driven and the insured individual's claims history. Consumer Reports suggests discontinuing comprehensive and collision coverage when the annual cost is 10 percent or more of the vehicle's book value.

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