Comprehensive insurance cover your car from physical damage caused by anything except collision, such as natural disaster, animal, vandalism, theft , and so on. In this case, Jessica Wilkinson lives in a suburban in state "C" where natural disasters like tornado and hail often occur. She has a car that often used for work. However, she doesn't have any insurance for her car. Wilkinson think she won't need any automobile insurance like liability insurance, collision insurance or comprehensive insurance, at least not yet. She always think that she can drive safely and carefully. Even though hail or tornado occur several times, she always park her car inside her garage. She thought that's a proper preparation. Not until hail come with heavy rain for an hour or two. The area where Wilkinson lived flooded and so her house with no exception her garage. She suffer damage not only for her house but also her car. The repair cost for her car is expensive. Her car need new engine and carpet replacement. The car also has electrical damage. Wilkinson has to pay more than $5,000 for the car repair cost out-of-pocket. She also has to pay the house damage repair cost. 

Wilkinson's story will be different if she purchased at least comprehensive insurance, it will be better if she also had property insurance. Comprehensive insurance will help Wilkinson to pay the car repair cost and cut down her expenses so that she can use the budget for fixing her house. Jessica Wilkinson need to consider purchasing comprehensive insurance since she lives in a prone area. Comprehensive insurance seems insignificant but it will help in cutting down unexpected expense. 

In different case, Marie Sue own comprehensive insurance for her car. One day, her car dented when parked in a shopping mall parking lot. Apparently, the other car driver who hit Sue's car run off from the site. Since she has comprehensive insurance, her insurer pay the car repair cost. Having insurance definitely give several benefits, it's better to prepare than sorry. 

Laura Bailey has a plan to buy health insurance. She surveys several health insurance companies and compare the insurance's quotes. She is interested in buying health insurance with co-insurance terms. Later, Bailey choose health insurance company "C" and settle 80/20 split in co-insurance agreement. Beside 80/20 split, Bailey has a $1,000 deductible and a $5,000 out-of-pocket maximum in her co-insurance provision. Bailey need to understand that 80/20 term only apply after she met her deductible for the year. However, something unfortunate happen and she need surgery early in the insurance agreement year that costs $5,500. Since she has not meet the deductible yet. the first $1,000 is not covered by the insurance company. Bailey have to pay $1,000 first and responsible to pay 20% of the remaining cost. And later her insurance company will cover the rest expenses. Here's the calculation:

In the same year, Bailey needs another expensive procedure. Since she already met her deductible, the insurance provision will work right away. The maximum amount she will required to pay for the rest of the year is $3,100 because she already paid a total $1,900 out-of-pocket during the policy term. Her insurance company is responsible for the bill up to Bailey's maximum policy limit.

Irvin Saga own a building with replacement cost valued at $2,000,000 and has an 80% coinsurance clause which means the building insured for at least $1,600,000. However, Mr. Saga decides to purchase a $1,200,000 insurance. As time passes, the building suffer damage from fire that cost $400,000. The insurance company find that the building value is $2,000,000 and being under reporting by Mr. Saga. Insurance company apply penalty which reduces the claim payment. The claim is calculated by dividing the purchased insurance by the supposed amount of insurance. In Mr. Saga case, the claim will be 75% from $1,200,000/$1,600,000. The percentage multiplied by the amount of the loss.

$400,000 x 75% = $300,000

This means Mr. Saga will receive only $300,000 (less any deductible) for the $400,000 claim.