There are many different types of auto insurance coverage that you can purchase. Each type offers different benefits, depending on the need of the policy holder. One of the most complete forms of coverage is comprehensive. To determine whether this is the right choice, a policy holder needs to do a needs assessment.

A needs assessment will help a driver determine what protection is needed on the automobile. This coverage will include protection for the vehicle owner and his or her family, for the car itself and for other individuals who may be harmed in an accident. Each area must be assessed separately, then combined to give an insurance agent a complete picture of the needed coverage.

First, the policy holder should determine how much coverage is needed for the people who spend the most time in the vehicle. This will include medical coverage and lost wage protection. An agent will have worksheets to help determine what is appropriate for a given situation.

Second, there is the need to cover the automobile itself. This coverage will depend on the value of the automobile and whether it is financed. Other factors that might impact this coverage include the condition of the vehicle, prior accidents and mileage.

Finally, the policy holder should determine the level of coverage that would be best to cover others injured or damaged in the event of an accident. This would include the driver of another vehicle, personal property of another individual who is not in the policy holder's automobile and other harm that may occur in an accident.

Comprehensive auto insurance includes everything except collision. Unlike standard liability policies, comprehensive coverage more than just theft and accidents. It covers everything from a broken windshield to vandalism or damage from an natural disaster. However, it does not cover tires or maintenance required from poor upkeep.

Rates for comprehensive insurance vary depending on the policy holder's driving record, the age of the automobile and the number of annual miles the policy holder drives.

If a driver has a history of accidents or speeding violations, these will be indicated on his or her driving record going back at least five years. Insurance companies generally base premiums only on the previous three years of driving. This way, drivers can move from high rates for a poor driving history to better rates, as their record improves.

Another factor that impacts insurance premiums, including comprehensive coverage, is the age of the covered automobile. Older vehicles are often less expensive to repair, making them less expensive to insure. Brand new vehicles, on the other hand, especially if financed, are much more expensive to cover.

The third factor in determining a comprehensive insurance premium is the total annual mileage of the policy holder. Insurance companies take the position that fewer miles equal fewer chances of an accident or violation. This, in turn, reduces insurance premiums.

With these facts in mind, it is clear that not every vehicle owner needs to have comprehensive coverage. Speaking to an agent can help with this important decision.