Found in automobile insurance policies, comprehensive insurance is one of several categories of coverage. Comprehensive insurance pays for damage to the car caused by an unknown party or an act of God. Comprehensive insurance will cover repair costs up to the fair market value of the automobile.
As is the case with collision coverage, the policyholder will be responsible for any deductible identified in the insurance policy. For example, if the comprehensive deductible is $250, then the policyholder will pay the first $250 of the repair cost.
Drivers are not required to carry comprehensive insurance on a car; however, if a loan or lease exists on the vehicle, it is very likely this insurance will be required until the loan has been satisfied, or the lease is terminated. This coverage protects the lender's remaining investment in the car in the event it is damaged in an accident.
Examples of damages covered by comprehensive insurance include fire, flood, theft, vandalism, or even objects such as tree limbs striking the car.