Comprehensive Insurance Law and Legal Definition

Comprehensive insurance refers to an insurance that combines coverage against many kinds of losses that may also be insured separately. An example of a comprehensive insurance is the automobile insurance policy.

A comprehensive insurance is considered a typically primary insurance, that is, insurance that attaches immediately on the happening of a loss which is not contingent on the exhaustion of an underlying policy. Comprehensive insurance also helps in providing protection to the buyer of the contract so that if the security is lost the contract will be paid. Under comprehensive insurance, any part of the insurance over the balance due on the contract being paid to the buyer. Thus, both the purchaser and lender are protected by comprehensive insurance.