Which type of coverage specifically protects against the theft of a vehicle?

Comprehensive coverage is designed to protect against a range of risks not related to collisions, including theft of a vehicle. This type of coverage goes beyond the basic liability that covers damage you may cause to another person's property or injuries sustained. Comprehensive coverage is often included in an auto insurance policy and covers incidents such as natural disasters, vandalism, fire, and theft.

This focus on protection from theft makes comprehensive coverage crucial for car owners who want to safeguard their investment against non-collision-related losses. It ensures that if a vehicle is stolen, the policyholder can receive compensation for the loss, allowing them to recover some of their financial investment.

In contrast, liability coverage solely addresses damages to other parties in accidents where the insured is at fault, collision coverage is limited to damage to the insured’s own vehicle resulting from a collision regardless of fault, and PIP (Personal Injury Protection) covers medical expenses and lost wages due to injuries sustained in an accident, rather than protecting against vehicle theft.