Comprehensive coverage is one of the most common policy names you will listen a commercial on YT ads, or in Twitter. That’s because it’s a really good coverage that will protect your vehicle against any sort of non-collision damages like fire, floods, theft or vandalism within others. Many lenders will request you to add it when buying a new car. In this article, we will explore what comprehensive coverage is, what it covers, and what other terms are used to refer to it.
What is Comprehensive Coverage?
Comprehensive coverage is an insurance policy that protects your vehicle against non-collison damages, it typically covers the damage from the acts of God such as hurricanes, torandoes, earthquakes, fire or flood. But also, it covers vandalism or theft.
Remember: comprehensive coverage is often included in a full coverage policy. As you can guess, it includes liability coverage, collision coverage, and comprehensive coverage. However, You can also buy comprehensive-only policy, that is a good way to store your vehicle when you’re going abroad for a while and you need to keep your vehicle insured.
What Does Comprehensive Coverage Cover?
Comprehensive coverage is very useful to cover your vehicle against non-collision damages on your car such as:
Fire damage
Theft or vandalism
Acts of God like hurricanes, tornadoes, earthquakes or floods
Falling objects like trees or rocks
Hitting a deers, other animals or rodent damages on your electric wires
Glass damage such as cracks or shattered windows
Civil disturbances such as riots or protests, that is added on the acts of vandalism section.
Acts of terrorism
Rememeber: Comprehensive coverage will never cover any collision damage to other properties, in that case you’d need to add collision coverage option along with your comprehensive coverage.
What Other Terms Are Used for Comprehensive Coverage?
While comprehensive coverage is a common term used by many insurance companies, it may also be called by other names depending on the insurer or region. Here are some other terms that are used to describe comprehensive coverage:
Other Than Collision (OTC) Coverage: This is another way to name comprehensive coverage, some car insureres prefer to call it this way to make more difficult to understand what your policy cover.
Physical Damage Coverage: This is the way to name both collision and comprehensive coverage. In a nut-shell, it pays for damage to your car that is caused by events other than normal wear and tear.
Fire, Theft, and Comprehensive: Some car insurers may call it this way to describe a policy that includes comprehensive coverage along with fire and theft coverage.
Specified Perils: This coverage name only covers damage caused by specific risks that are listed in the policy only. Some common speficied risks may be fire, flood, earthquakes, etc.
All Perils Coverage: This this coverage name adds both collision and comprehensive coverage in your policy. It is also known as "all risks" coverage because it covers almost any type of damage to your car. But remember: there are some specific exclusions that are listed in that sort of policy.
FAQs
Q: Is comprehensive coverage required by law?
A: No, comprehensive coverage is not required by law. However, if you have a car loan or lease, your lender or lessor may require you to have comprehensive coverage as part of your insurance policy.
Q: Does comprehensive coverage cover damage to other vehicles?
A: No, comprehensive coverage only covers damage to your own vehicle. Liability coverage is required to cover damage to other vehicles and property.
Q: Is comprehensive coverage expensive?
A: The cost of comprehensive coverage can vary depending on several factors such as the make and model of your car, your location, and your driving history. However, it is generally less expensive than collision coverage.
Q: Is comprehensive coverage the same as full coverage?
A: No, comprehensive coverage is not the same as full coverage. Full coverage typically includes both comprehensive and collision coverage, as well as liability coverage.
Conclusion:
Comprehensive coverage is the most common way used in the insurance industry to describe a type of policy that provides protection against many sorts of risks like fire, flood, vandalistm or theft. This coverage is perfect for those who want to protect their vehicles in case of unexpected events like driving your car and you find a deer in the middle of the road, then you start honking the horn thiking the deer will run away, but the deer just thinks you’re a rival and it runs towards your vehicle and your vehile’s hood receives a heavy impact, in that case, you’ll need comprehensive coverage.
Comprehensive coverage also have several different terms that would describe the same type of coverage. Depending on the insurance company and the specific policy, other terms such as "full coverage" or "complete coverage" may be used instead.
Check your policy’s declaration page, read it carefully, reveiew all the details to be sure your policy provides you the protection you really need against potential risks you may face in your state. Remember to check your deductibles, your coveage limits and the exclusions. Some policies would cover water damage from foold but it may not cover water damage from a broke pipe.
Overall, comprehensive coverage is required by many leders, and it might be important for you to understand what does your policy says, sometimes it seems like you’re reading a hieroglyph instead of a policy, so you must understand some insurers may call “other than collision coverage” instaed of comprehensive coverage within others.
Other readers were also interested in the following posts:
How does comprehensive coverage differ from liability coverage or collision coverage?
Does My Comprehensive Car Insurance Cover Me to Drive Another Car?
Comprehensive Insurance vs Collision: Which One is Right for You?
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