1. What types of protection does comprehensive coverage provide for policyholders?
What is Comprehensive Coverage?
Comprehensive coverage is a type of insurance policy that provides financial protection against damages and losses that are not caused by collision, such as theft, fire, vandalism, and falling objects. It is also known as “Other than Collision Coverage” and “Other than Collision and Fire” coverage.
What Does Comprehensive Coverage Include?
Comprehensive coverage includes the following:
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- Theft: Coverage for theft or theft-related losses.
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- Fire: Coverage for fire or fire-related losses.
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- Vandalism: Coverage for vandalism or vandalism-related losses.
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- Falling Objects: Coverage for damages caused by falling objects such as tree branches, rocks, or hail.
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- Animal Collisions: Coverage for animal collisions or animal-related losses.
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- Flood: Coverage for flood or flood-related losses. This coverage is usually optional.
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- Hail: Coverage for hail or hail-related losses.
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- Earthquake: Coverage for earthquake or earthquake-related losses. This coverage is usually optional.
When is Comprehensive Coverage Necessary?
Comprehensive coverage is recommended for drivers who drive expensive vehicles or in areas where theft, vandalism, or falling objects are likely to occur. It is also recommended for drivers who pay higher deductibles for other coverage, such as liability or collision.
Comprehensive coverage is usually not necessary for drivers who drive older vehicles or in areas where these risks are unlikely to occur.
Conclusion
Comprehensive coverage is an important type of insurance coverage that provides financial protection against damages and losses that are not caused by collision. It is recommended for drivers who drive expensive vehicles or in areas where theft, vandalism, or falling objects are likely to occur.