What type of coverage does Comprehensive Automobile policy provide?

A Comprehensive Automobile policy provides coverage for a wide range of risks associated with your vehicle, but it is not without exclusions. This means that while it offers extensive protection, there are specific events or situations that are excluded from coverage, such as wear and tear, mechanical failure, or certain natural disasters in some cases. The policy typically covers risks like theft, vandalism, and damage from wildlife or fire, thereby ensuring that the insured party is well protected against many of the common risks of vehicle ownership.

The other options do not accurately capture the nature of a Comprehensive policy. It does not cover "all risks with no exclusions," as that would suggest an unrealistic level of coverage. Likewise, it is not limited to covering "only specified perils," which would refer to a policy that explicitly enumerates what risks are covered, leaving out many other possibilities. Finally, while Comprehensive policies do focus on damage to the vehicle, they may still offer liability coverage depending on the insurer and specifics of the policy. Thus, the most accurate characterization is that the Comprehensive Automobile policy covers all risks, but subject to specific exclusions, making it a balanced protection option for car owners.