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What is comprehensive insurance?

Coverage in this broad format extends beyond the basics to include rare events that can pose significant risks to the insured. This type of insurance generally requires a higher premium and is often deductible. Comprehensive insurance can be applied to almost all forms of insurance, including investments, assets, etc.

Understanding insurance is broad

Comprehensive insurance extends beyond basic coverage. An example of comprehensive insurance coverage is auto glass insurance. A customer may need glass insurance as they often walk on roads that damage the windshield. Glass insurance is not offered under basic car insurance plans and therefore must be specifically requested and a premium must be paid.

The definition of the term "comprehensive insurance" may vary depending on the type of insurance. In most insurance policies, the policy is usually basic or general. For example, for commercial insurance, there are generally:

  • Basic form policy that generally covers fires, explosions, storms, smoke, riots, vandalism, and sprinkler leaks.
  • A broad approach that adds more coverage, such as damage from broken windows, other structural glass, falling objects, and water damage.
  • Private form coverage provides the widest range of protection, generally covering all risks (including theft) unless specifically excluded from the policy.

In most states, insurers refer to a policy broadly in reference to a comprehensive general liability insurance policy that provides a wide range of coverages that can be tailored to meet specific needs.

Some auto insurance companies are required to offer extensive corporate insurance options, providing coverage to employees, executives, or anyone else who receives the company vehicle, but does not own a personal automobile and therefore does not enjoy coverage of your personal auto policy. In such a case, a certification can be added that provides protection while the person or spouse is driving the car borrowed from a third party.

The example of a large format insurance

In Michigan, for example, insurance companies can offer three types of automatic collision coverage: limited, standard, and comprehensive. The protection offered by the three types of coverage varies depending on the fault of the accident:

  1. Standard: Repair or replacement of the insured vehicle is covered, regardless of failure. You will be responsible for the deduction if you file a claim.
  2. Extensive - You will only have to pay your deductible if it turns out that you are more than 50 percent wrong in a covered accident. If you are less than 50 percent wrong, you don't have to pay the deductible.
  3. Limited: The repair or replacement of the insured vehicle is only covered if the driver's fault is less than 50%. In this case, you will have to pay the deductible. However, if the fault of the driver of the insured vehicle is greater than 50%, the damages caused by the accident will not be covered.