Comprehensive Auto Insurance

A comprehensive auto policy is often required by a bank or loan company who loaned you money to buy your car. This policy is frequently sold together with collision insurance and also may be required as part of the terms of the loan.

Comprehensive insures the policy holder against just about everything that is not covered by collision insurance such as: falling trees, floods, bad weather and fire. It may even cover accidents with deer.

As with collision car insurance, the value of most claims and also what an insurer will offer to settle a claim will be decided by an insurance adjuster. You then, as the policy holder, may negotiate for a somewhat higher settlement or refuse the offer as inadequate. If you cannot reach a settlement, after an extended period of time, you can file a complaint with either your state attorney general office or with your state's department of insurance.

Generally the policy holder will have to pay a deductible before his or her insurance company will pay for any damages. The policy holder can save a considerable amount of money over time by raising the deductible.

Like a collision policy, an insurer will not pay more than the 'cash value' of your car, so if damages are more than that value, your car will probably be declared a total loss and the value of the car, before the damages were incurred, will be paid to you, the policy holder.

Unlike liability insurance, raising the policy dollar limit above the worth of your car will not offer you additional protection, since most companies will only pay, at most, up to the market value of the vehicle.