Car insurance can provide you with a basic or full cover.  Basic cover is known as liability insurance in which a third party and you are covered.  Some liability insurance only covers third party.  However, liability cover does not include certain acts of nature or other problems that could arise.  For example, if your car catches fire and you do not have comprehensive coverage the insurance company will not cover the cost of repair.

By definition comprehensive car insurance is cover in which fire, theft, vandalism, weather or impact with animals is covered.  The type of cover will be determined on where you live.  Consider for a moment that you live in Alaska and have comprehensive cover.  In Alaska comprehensive insurance covers for damage to your vehicle by moose or bear.  In Florida where you do not have moose this cover would not be appropriate.  However, in Florida there is a risk of hurricane, which may or may not be covered by comprehensive.  Typically natural disasters require extra cover even under comprehensive.  In this way the insurance company gets higher premiums for you to cover damage that is fairly common or what they consider high risk.

Comprehensive cover is subject to a deductible.  The amount of this deductible is determined by the value of your car, its age, whether you have a loan, and the cover you want to have.  If you want to pay a higher deductible you can cover your car with a higher amount of money.  Most individuals obtain a $500 deductible because it is a reasonable amount that they may have on hand at any given time.  It also helps get the repairs done quickly that are needed.

You might be wondering if you need comprehensive cover.  This is a difficult question to answer.  First of all comprehensive insurance is between $10 and $30 more a month.  When you consider your vehicles worth is at least 100 times that amount it becomes pretty clear you are saving something if your vehicle is damaged or stolen.  As one who has been in a situation where I needed comprehensive insurance and did not have it, it’s a worthwhile addition.

You may also not have a choice when it comes to comprehensive insurance.  When you loan or lease a vehicle you are automatically required to get comprehensive cover.  The lender does not want your vehicle to be totaled without some recompense.  Failure to have comprehensive insurance when you have a loan will negate the loan.

Lenders require more than comprehensive cover.  They also require collision insurance.  Comp and Collision generally go together with insurance policies anyway.  So adding both options for a leased or loaned car is important.

With comprehensive insurance the first party is generally covered.  If you feel you will have an additional driver in your car such as a spouse, child or parent you need to make sure they are on your policy.  This way the comprehensive will also cover any damage that might be inflicted while the additional driver is at the wheel.