What Is Comprehensive Motor Vehicle Insurance?

All 50 states have different laws when it comes to motor vehicle insurance requirements. The requirements for motor vehicle coverage are regulated by the state; however, consumers have some choices. One of these 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 damaged.

Windshields

Coverage of windshields in comprehensive motor vehicle insurance varies but is covered to some degree in all 50 states.

References

• Insurance Information Institute
• Car Insurance.com