Definition of Comprehensive insurance:
Comprehensive insurance is a type of automobile insurance that covers damage to your car from causes other than a collision. Comprehensive insurance would cover your vehicle if it was destroyed by a tornado, dented by a run-in with a deer, spray-painted by a vandal, damaged by a break-in or crushed by a collapsing garage, among other causes. .
Widest form of auto insurance protection that (in case of a collision, fire, or theft) covers the (1) insured driver and vehicle, (2) third-party driver and vehicle, and (3) third-party property. Premium is computed usually on the engine size and value of the vehicle, its intended use, and the age and driving record of the driver. Also called comprehensive cover or fully comprehensive insurance.
Comprehensive insurance, collision insurance, and liability insurance are the three components of an automobile insurance policy. State law requires drivers to carry liability insurance, but collision and comprehensive insurance are optional if someone owns a vehicle outright. If a person has financed the vehicle, the auto loan company might require comprehensive insurance. If the car owner has paid for the vehicle in full, and they can’t afford comprehensive insurance, they own an older automobile that doesn’t have much value, they think they’re at low-risk of non-collision damage, or they prefer to self-insure, the owner can choose not to purchase comprehensive insurance. On the other hand, even if someone owns an automobile free and clear, if they live in a rural area where collisions with animals are common, in a stormy area that often gets hail or in a higher-crime part of town where break-ins and theft occur regularly, they might want to purchase comprehensive insurance.
How to use Comprehensive insurance in a sentence?
- If your company wants to be fully protected it should get a good comprehensive insurance that covers every possible scenario.
- Billy lives in a high accident rate area and it would be to his best interest to carry comprehensive insurance for his brand new car.
- If you want to be covered in all areas you should try to get a comprehensive insurance so that you dont have to worry.
Meaning of Comprehensive insurance & Comprehensive insurance Definition