Legal Definitions - comprehensive insurance coverage

Term: comprehensive insurance coverage

Comprehensive insurance coverage is a type of automobile insurance that protects your vehicle from damage not caused by a collision with another vehicle or object. Instead, it covers losses resulting from a wide range of other incidents, often referred to as "acts of God" or other non-driving-related events. While state laws typically do not mandate this coverage, financial institutions often require it for vehicles financed with a loan, as it safeguards their investment against unexpected damage that liability or collision insurance would not address.

Examples:

• Example 1: While driving on a rural highway at dusk, a deer suddenly runs into the path of Sarah's car, causing significant damage to the front bumper and hood. This situation is covered by comprehensive insurance because the damage to Sarah's vehicle was caused by an animal, not a collision with another vehicle or a stationary object like a guardrail.
• Example 2: During an unexpected severe storm, a flash flood inundates a parking garage, submerging Mark's parked car and causing extensive water damage to its engine and interior. Comprehensive coverage would apply here because the damage resulted from a natural disaster (a flood), which is a non-collision event beyond Mark's control.
• Example 3: One evening, a faulty electrical system in David's parked car causes an engine fire, leading to substantial damage before firefighters can extinguish it. This scenario falls under comprehensive insurance because the fire originated within the vehicle itself and was not the result of an impact or collision with another car or object.