Comprehensive coverage policy would cover all the vehicles that the policyholder would be driving. However, collision is excluded from this policy coverage. Typically, comprehensive policy coverage would cover damage to the car if it was stolen or was damaged by fire, flood, or animals. If the policyholder wishes to have a low premium for this coverage, he/she should pay a high deductible. For example, if the damages to the car due to the above reasons amount to $1,500, and the deductible had been set at $1,000, the policyholder would have to pay $1,000 and the insurance company would pay $500.
This coverage is not mandatory according to state laws. However, if the policyholder wants to obtain a lease or a loan against the vehicle, the lender would insist that this policy coverage be purchased. If the car is new or is in very good condition, this coverage would be helpful in repairing or replacing the vehicle, if there is a loss. However, if the car is old or is in poor condition, this coverage would not be very useful.
