What Is Comprehensive Motor Vehicle Insurance?
Definition Comprehensive motor vehicle insurance covers most damage done to a car that is not caused by a collision. For example, damage caused by fire, wind, water and theft would all be covered by comprehensive auto insurance. Required/Optional Comprehensive motor vehicle insurance is not required by state law. But if there is a loan attached to the car, a lender will require you to have comprehensive coverage. If the car is owned outright, it is up to the owner to decide whether this coverage is worth the cost. Premiums The premium for comprehensive motor vehicle insurance is the yearly or monthly fee for the insurance. This fee varies depending on the make and model of the car and the owner’s driving record. Deductible The deductible is the car owner’s out-of-pocket cost if there is damage to the vehicle not caused by a collision. When deciding on the deductible for comprehensive motor vehicle insurance, the car owner must consider how much he can afford to pay if the car is damage
