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| Comprehensive Car Insurance Explained |
Comprehensive automobile insurance is an important type of coverage that provides a broad range of protection, including most cases of physical damage that happens to your vehicle that does not involve an accident with another car. This is frequently referred to as OTC or other than collision ins. You will hear some agents and brokers shorten the word to just "comp" but it means the same thing. So if your car is damaged in other than collision situations, comprehensive will kick in and cover you for damages.
There are 2 basic elements to automobile insurance
These are liability coverage and the second is physical damages. In almost every state in the U.S liability insurance is mandatory by law. This important component of insurance gives you coverage when bodily injuries have occurred or even death after an auto accident and you were found responsible for the incident. Coverage for physical damages can be optional, depending on numerous factors such as if you own or finance your vehicle. It provides coverage for vehicle repairs or replacement after a collision or an event that occurred while you were operating the vehicle.
There are two categories within "physical damages" you have the option to purchase on your policy. These are collision and comprehensive insurance. As the name implies, collision ins will cover you after you've been involved in a driving accident and caused damage to your car. This could be hitting another vehicle, someone running you off the road and hitting a tree and countless other possible scenarios. Having collision protection will pay for the repairs that are needed to your car or if it's totaled, the replacement value. If you have a newer car worth more than $10,000, it is smart to get collision insurance because vehicles are expensive to repair and replace. If on the other hand, your automobile is only worth $2,000 or thereabouts, it might be smart just to get liability only and put the savings in the bank.
An easy way to remember what comprehensive insurance covers is things that happen to your car that do not involve another vehicle crash. Many people mistakenly believe that Collision ins covers hitting an animal like a deer while driving. This falls under comprehensive insurance. Most often mother nature or theft comes into play when people file comprehensive claims. This includes flooding or having your car stolen. The most common comprehensive claim incidents include:
* Stolen Vehicle
* Vandalism (tire slashing or "keying the car")
* Fire
* Hail storm and flooding
* Wind damage
* Windshield Breakage
* Falling objects like tree limbs or construction materials
Always make sure to completely read all the fine print in your policy. You might not be covered for example by vandalism from a family member and in some cases situations involving employees. It is also important to note that almost every insurer will require you to purchase collision insurance prior to getting comprehensive coverage. On the other hand, you can buy collision ins without adding on comprehensive. If you lease or finance your car, you will in all likelihood be required to buy comp car insurance. This is a protective measure the lenders make in order to protect the value of the loan they are making.
The Cost of Comprehensive Auto Insurance
Adding comprehensive insurance onto your policy does raise the cost of insuring your vehicle. The rate you pay will depend however on many factors including:
* The age of the driver
* Driving record
* Credit Record
* Marital Status
* Annual Miles Driven
* Home Address
Although this type of extra protection does cost more, there are a couple of tips you can take advantage of to get a lower premium. First, raise your deductible up to $1,500. Having a high deductible will lower your premiums by quite a bit and may even make getting comprehensive ins financially feasible.
There are 2 basic elements to automobile insurance
These are liability coverage and the second is physical damages. In almost every state in the U.S liability insurance is mandatory by law. This important component of insurance gives you coverage when bodily injuries have occurred or even death after an auto accident and you were found responsible for the incident. Coverage for physical damages can be optional, depending on numerous factors such as if you own or finance your vehicle. It provides coverage for vehicle repairs or replacement after a collision or an event that occurred while you were operating the vehicle.
There are two categories within "physical damages" you have the option to purchase on your policy. These are collision and comprehensive insurance. As the name implies, collision ins will cover you after you've been involved in a driving accident and caused damage to your car. This could be hitting another vehicle, someone running you off the road and hitting a tree and countless other possible scenarios. Having collision protection will pay for the repairs that are needed to your car or if it's totaled, the replacement value. If you have a newer car worth more than $10,000, it is smart to get collision insurance because vehicles are expensive to repair and replace. If on the other hand, your automobile is only worth $2,000 or thereabouts, it might be smart just to get liability only and put the savings in the bank.
An easy way to remember what comprehensive insurance covers is things that happen to your car that do not involve another vehicle crash. Many people mistakenly believe that Collision ins covers hitting an animal like a deer while driving. This falls under comprehensive insurance. Most often mother nature or theft comes into play when people file comprehensive claims. This includes flooding or having your car stolen. The most common comprehensive claim incidents include:
* Stolen Vehicle
* Vandalism (tire slashing or "keying the car")
* Fire
* Hail storm and flooding
* Wind damage
* Windshield Breakage
* Falling objects like tree limbs or construction materials
Always make sure to completely read all the fine print in your policy. You might not be covered for example by vandalism from a family member and in some cases situations involving employees. It is also important to note that almost every insurer will require you to purchase collision insurance prior to getting comprehensive coverage. On the other hand, you can buy collision ins without adding on comprehensive. If you lease or finance your car, you will in all likelihood be required to buy comp car insurance. This is a protective measure the lenders make in order to protect the value of the loan they are making.
The Cost of Comprehensive Auto Insurance
Adding comprehensive insurance onto your policy does raise the cost of insuring your vehicle. The rate you pay will depend however on many factors including:
* The age of the driver
* Driving record
* Credit Record
* Marital Status
* Annual Miles Driven
* Home Address
Although this type of extra protection does cost more, there are a couple of tips you can take advantage of to get a lower premium. First, raise your deductible up to $1,500. Having a high deductible will lower your premiums by quite a bit and may even make getting comprehensive ins financially feasible.
Comprehensive Car Insurance Explained
Reviewed by emhasby
on
December 07, 2018
Rating:
Reviewed by emhasby
on
December 07, 2018
Rating:
