Final answer:
Comprehensive auto insurance covers the cost of replacing or repairing a car due to non-collision events such as theft or natural disasters. It's crucial for vehicle protection and has premiums affected by the driver's age, driving history, and the car's safety rating, paid in installments.
Step-by-step explanation:
The coverage being described is comprehensive auto insurance, which pays out for the repair or replacement of your car in cases where damage is not caused by a collision. This includes events such as theft, fire, vandalism, hail, and falling objects. It operates separately from collision insurance, which covers damages to your vehicle from an accident involving another car or an object, like a tree or guardrail. Comprehensive auto insurance is essential for protecting your vehicle against a range of non-collision related risks.
When considering insurance for a new or used vehicle, it's important to account for these insurance rates which can be affected by factors such as the vehicle's safety rating, your driving record, and even your age. This type of insurance is part of the cost of owning a vehicle and is often required by law in many states. Premiums can be paid in various installments, including monthly, quarterly, or biannually, adding to the overall expenses of vehicle ownership.