Comprehensive Insurance
When it comes to auto insurance, there is no such thing as one size fits all. The type of coverage you ultimately choose is partly dictated by state requirements (usually in the form of mandatory minimum liability coverage), and partly dictated by your bank or finance company, which may require "full coverage," meaning liability plus collision and comprehensive insurance.
You might think that the term "comprehensive" should be all-inclusive, that such coverage should be built from liability and collision. Instead, it's more like a "miscellaneous" category. Comprehensive insurance covers damage to your car caused by unknown parties and "acts of God," in non-accident situations.
Specific examples of the items covered by most comprehensive auto insurance policies include damage caused by:
- Fire
- Flooding
- Hurricanes
- Theft
- Vandalism
In addition to coverage for the above named perils (itemized causes of damage), comprehensive coverage comes with a list of endorsements. These are optional extensions to your policy that provide additional benefits. Common endorsements include:
- Roadside Assistance: emergency assistance in case your car has a flat tire or otherwise breaks down, leaving you stranded on the side of the road. Towing is generally included, but repairs are your responsibility.
- Rental Coverage: this pays for a rental car, should your own car be in the shop having covered damage repaired.
- Towing: as part of roadside assistance, or not.
- Glass Insurance: can reduce, or completely eliminate, the deductible for repairing broken glass, including the windshield, of your car. This is often used to patch cracks and pits before an entire windshield must be replaced.
Comprehensive insurance, like collision and liability, involves a deductible and a premium, though the latter is usually just a factor in your entire premium, while each kind of coverage can have a separate deductible schedule. With comprehensive insurance, it's as if there's a financial safety blanket wrapped around your car.
