Car Insurance Term: Comprehensive
There are many terms and phrases associated with auto insurance, and one of these is the word “comprehensive.” Comprehensive auto insurance refers to insurance protection for your car in case it is stolen, or destroyed in a flood, for example.
Comprehensive auto insurance, which is one of the more basic aspects of auto insurance, is often referred to as simply “comp.” Many times it is referred to, along with collision insurance, as “comp and collision.” Comprehensive auto insurance is a good idea for just about all car owners. If you are leasing your car, or are making car payments and the car essentially belongs to someone else (the bank or other financial institution to which you owe your car loan), you can be sure that you will be required as part of your auto loan terms to get comprehensive auto insurance. It is the bank’s way of protecting their asset (your car) until you have paid off their loan.
People with very old cars, or cars that are in bad condition, may want to forgo comprehensive auto insurance because it won’t ultimately make financial sense: why pay to insure a car against theft when the car itself isn’t worth very much? You’d be paying hundreds of dollars a year on a car that might very well be worth less than the total amount of coverage you pay.
To learn more about comprehensive auto insurance, or any other aspect of auto insurance, be sure to call or meet with an auto insurance representative to go over all your questions in as much detail as you need.
Here are other important auto insurance terms you should know: