Understanding comprehensive auto insurance covers

Understanding comprehensive auto insurance covers

Comprehensive auto insurance covers damages not only caused by collisions with another vehicle. These include damage caused by natural calamities, falling objects, wind, vandalism and fire. While the federal law does not force car owners to possess comprehensive coverage, it does advisable for them to own it just in case of unfortunate accidents. Comprehensive auto insurance policies cover damages incurred by the insured vehicle as well as those of other persons on the roads. It is compulsory in many states to have this type of insurance. Here are some points which you must consider before purchasing comprehensive auto insurance.

The amount of your premium depends largely on your driving record. If you have been a careful driver and have not had any major accidents or tickets, then you will be able to buy comprehensive auto insurance covers at comparatively lower premiums. However, you should not anticipate lower premiums if you have had accidents or tickets in the past because if you have had one, then your premiums would definitely be high. If you have not driven very much lately, then there is no cause to worry as your premiums will also be lower. Therefore, do not be quick to conclude that if you have not driven for a few years, then you do not need to buy collision coverage.

There are several factors which determine the amount of your premium. They include the age of your vehicle, its make and model, its mileage, safety features like airbags, break-lights, anti-lock brakes and others, its location and whether it is used daily, weekly or rarely. Also, your vehicle’s value determines the amount of your premium. Generally, comprehensive covers are expensive, but you will get discounts if you buy the policy before the expiry of the period of the contract. Some insurers will give you hefty discounts if you agree to purchase a comprehensive policy before the expiry of your contract period. Therefore, if you have some additional assets, you can also consider these options in order to reduce your premiums.

Comprehensive coverage includes bodily injury and property damage to other people and property, which are caused by your vehicle. The first type of coverage will pay the cost of treating injuries resulting from an accident of yours. Another important factor which determines the price of this type of insurance is the value of your vehicle. If you want to insure your car for cash value, then you must purchase collision insurance before the expiry of the existing policy. In case you purchase a comprehensive policy and your vehicle is damaged beyond repair, then you will be liable for the entire cost of repairing it, irrespective of the type of coverage you have chosen.

Comprehensive auto coverage is very useful in situations where the damage to your vehicle is extensive. Usually, comprehensive coverage will not pay for damages which are caused due to vandalism. It is extremely rare to find any insurer that provides coverage for thefts from your car. Comprehensive coverage usually costs more than liability coverage because it offers coverage for various events beyond the scope of liability coverage. Your insurance company will fix the cost of repairing your vehicle after deducting the deductible amount from the amount for which you have taken the policy.

Some people consider that they do not need such a comprehensive coverage because they do not travel that much and their vehicle is not prone to accidents or damages. However, comprehensive insurance coverage is required by law when you are taking a second motor vehicle insurance policy, which will also provide coverage for any third party involved in such an accident. Even though insurance companies may vary in the amount which they offer for such coverage, you can expect them to offer a minimum of $1 million. If you are over that amount, then you can expect your insurance company to provide full reimbursement for whatever losses you incur as a result of vandalism or theft of your car.

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