No states require comprehensive coverage, but those who finance or lease their car will probably find that their lender or lessee requires it. Lenders and lessees are the official owners of the vehicle, so they want to make sure they're adequately protected in case of an incident. For the same reasons, you'll rarely be able to buy comprehensive insurance without also purchasing bodily injury liability and collision coverages.
The cost of a comprehensive cover is several times that of a stand-alone third-party cover, since damage claims are more frequent than third-party claims. Until now, the premium for motor third-party insurance was calculated on the basis of a schedule of rates provided by the Tariff Advisory Committee, an arm of IRDA, the insurance regulator. But IRDA has done away with the motor tariff. The compensation to the victim is largely decided by the earning capacity of the accident victim.
Susan was driving home from Thanksgiving dinner at her family cottage when suddenly she hit a deer. Thankfully she was okay, but her car was destroyed. She called the police to make an accident report, then called her insurance worried that this might not be fully covered. Her insurance representative reassured her, she has comprehensive insurance, so the damage would be covered under her policy.
NerdWallet compared quotes from these insurers in ZIP codes across the country. Rates are for policies that include liability, collision, comprehensive, and uninsured/underinsured motorist coverages, as well as any other coverage required in each state. Our “good driver” profile is a 40-year-old with no moving violations and credit in the “good” tier.
If you sell your vehicle to another individual, you can transfer the insurance in the name of the new buyer. The news buyer (transferee) has to submit an application for the transfer of insurance with the insurer, within the tenure of 14 days from the date of transfer of the vehicle in his name and after the endorsement premium is paid for the remaining duration of the policy.
Bodily injury coverage is written with two limits: the first applies to each person; the second is related to each accident. As an example, minimum recommended coverage levels are usually $100,000/$300,000, which translates to policy limits of $100,000 per person in an accident and $300,000 total per incident. Required coverage levels vary by state, but can be as low as $10,000/$20,000, which is hardly sufficient for a serious accident.