Comprehensive auto insurance covers you if your vehicle is damaged by an incident that isn't a collision. While this coverage isn't technically compulsory, there might be times when you should buy it. When might you need comprehensive coverage?

1. You Don't Own Your Car

While comprehensive insurance is optional for many drivers, you might have to buy this coverage in some circumstances. For example, if you lease your car or have taken out an auto financing loan to buy it, then your leasing company or lender might want to have a say here.

As part of your agreement, you might have to agree to add comprehensive auto insurance coverage to your general insurance. You might not be able to lease a car or qualify for a loan until you agree to do this.

Here, your comprehensive coverage minimizes risk for your lender if your car gets damaged in a non-collision incident. Your coverage should pay some of their damage or loss costs.

In some cases, you might also have to name your leasing company or lender on your coverage as a payee. As the owner of the vehicle, they might want to ensure that they receive any insurance payout from the policy.

2. You Can't Afford To Replace Your Car 

Liability and collision auto insurance policies give you useful protection if you have an accident or collision. However, these types of coverage won't help if your car is damaged in other ways.

For example, you won't get any financial protection if someone steals your car or vandalizes it. You won't get any help if a tree branch falls onto the vehicle in a storm and causes some damage. This lack of protection can be a real problem if your car is completely wrecked and unsalvageable.

For example, if someone steals your car and then sets it ablaze, then the car might be totaled. You can't repair this kind of serious fire damage, and you'll have to replace the vehicle.

If you don't have comprehensive auto insurance protection, then you won't get any financial help with your costs here. You have to pay for a new car. If you don't think that you could afford to do this, then you should seriously consider buying comprehensive coverage.

This coverage would help you cover the costs of a replacement. You might still need to find some of the money, but your insurance company will take a lot of the strain.

To find out more, contact auto insurance coverage companies.