Comprehensive Insurance
Comprehensive insurance is a type of insurance which pays for the costs incurred from situations which are not covered by a typical car insurance, property insurance, health insurance, and life insurance. As such, a comprehensive insurance pertains to the kind of insurance employed as a hedge against conditions which are not exactly specified or excluded from the insurance policy coverage. For instance, comprehensive insurance in a car insurance policy covers damages acquired by an insured car itself, which is not usually covered in a regular car insurance policy.
Although the more popular use of the term "comprehensive insurance" refers to a type of car insurance coverage, other types of insurance, such as for health and travel, may also contain comprehensive insurance policies. Aside from this, comprehensive insurance may stand alone as a separate insurance package. Comprehensive insurance may also be referred to as general insurance. In this usage, comprehensive insurance may provide two types of coverage: liability insurance and property insurance. Comprehensive insurance serves as a liability insurance when the policyholder incurs costs due to legal accountability arising from the involvement of a third party. Comprehensive insurance is used as a property insurance when it is meant to cover the contents of an insured property.
What does comprehensive insurance cover?
As its name implies, comprehensive insurance covers those other conditions which are not stated but not specifically excluded by a regular insurance policy. In car insurance, for example, the costs usually covered by a car insurance policy are those which affect a third party, such as when another person is injured by the insured car or when the other person's property is damaged. It is comprehensive insurance which covers the repair costs of the insured car itself. Comprehensive insurance also bears the costs of replacements when an insured car is damaged in an accident. Aside from this, a comprehensive insurance also covers losses due to fire and theft. Comprehensive insurance may be a single life insurance package which provides coverage for both travel and health. In terms of healthcare insurance, a comprehensive insurance plan may cover not just the treatment of an insured person, but preventive medical procedures as well.
Why would you need comprehensive insurance?
A comprehensive insurance policy can give you optimum protection from risks and costs, as it covers even those which are not specified in your insurance policy. Although it may be more expensive, it can be more cost-effective in the long run, as it can provide the coverage of more than one type of insurance policy.
