Auto insurance: comprehensive coverage basics
When considering how much auto insurance coverage you need, there are many factors to keep in mind. The type of vehicle, any add-ons and modifications that you purchase can all affect your insurance rates. Before you make a decision regarding coverage, do a little research. You might be surprised at how much coverage you really need for your car.
Will a comprehensive claim help me pay for repairs? If your car is totaled in a wreck, comprehensive insurance coverage will pay to fix or replace your car. Therefore, if you get hit with a moose, raccoon, squirrel or hit a pedestrian by your car, comprehensive claim will cover the cost of repairs or replacement. However, some policies do have limits as to what types of claims are covered under the comprehensive portion of a policy. Before you buy a comprehensive policy, talk to an insurance agent to find out what types of comprehensive claim benefits your policy will provide you with.
Will the rental reimbursement coverage or cash value add-on help me after I make a claim? If you get into an accident with no fault, your auto insurance company will pay you up to so much per day up to the maximum daily rental reimbursement amount set by your company. Cash value or rental reimbursement coverage does not usually increase with the size of your vehicle. Therefore, if your car is small enough to be totaled in a wreck, the insurance company may pay you up to so much per day to cover the repair costs of your vehicle.
How will the cost of my premium change after I use my credit card? Most auto insurance companies deduct a percentage from your premium for using your credit card to pay for car repairs. You can, however, deduct a much larger percentage from your premium if you choose to use the auto insurance coverage that is offered with a cash value or rental reimbursement coverage. If your insurance company has a preferred provider, you may be able to take advantage of that provider’s special price discounts for having a specific provider. By shopping around, you may be able to save quite a bit of money on your comprehensive insurance coverage.
What is the difference between my comprehensive and collision insurance coverage? Both collision and comprehensive coverage require you to pay out of pocket for any damage you cause to someone else’s car. In many cases, a comprehensive insurance coverage deductible will be higher than a deductible for collisions. For example, if you cause a car wreck and no one is injured, you are liable for all damages. However, if you are the only person in the accident, you will only owe the deductible on the accident.
I am moving soon and can not afford to increase my deductible. How can I reduce my premium? Usually a quick call to your current provider will find a way for you to keep your cost down by changing your policy to include more standard features, such as windshield repair, rental car coverage and other benefits. Before you make this switch, however, you may want to check with your current auto insurance agent to make sure that your current plan will let you keep these additional benefits.