Car Insurance Coverage
Excluding basic liability coverage the most carried types of car insurance coverage are Comprehensive and Collision coverage. In this article we will explain what is included in each type of coverage and what there differences are. So, when it's time to get free insurance quotes you'll be ready.
Collision Coverage
Collision coverage will pay for damages resulting from an automobile accident where you collide with another object, such as another car or tree. The coverage is comparable expensive when compared to the other coverages included in a car insurance policy. Collision coverage is optional and isn't required by law, although a leasing are finance company my require it.
If you have an old car and it is not worth at least $2000, you might want to consider not buying collision coverage. You will likely pay more for the coverage than you would get if you filed a claim. This is because insurance companies are only required to pay for the lessor of either what the car is worth or the costs to fix it. They might deem you vehicle worth less than what it will cost to fix.
Comprehensive Coverage
Comprehensive coverage pays for damage to your auto from almost all other causes, including fire, severe weather, vandalism, floods, theft and hitting animals. Comprehensive coverage also will cover broken glass, such as windshield damage. Comprehensive coverage is less expensive than collision coverage and many consumers choose to carry it. However, remember it is your choice; you are not required by law to carry comprehensive coverage.
Remember if you decide to have collision or comprehensive coverage you will also have to choose a deductible amount from zero to $2500. The deductible is the amount you are responsible to pay before the insurance company pays there portion.
In essence, the deductible lowers your premium because your are taking part of the financial burden off of the insurance company unless you choose a zero dollar deductible also known as a full deductible. The reason insurance companies offer deductibles is because it decreases the chance of you filing a small claim, which are expensive for the insurance company to handle.
If you buy a new car and take out a loan the lending company will most likely require you to have collision and comprehensive coverage as part of your car insurance. The reason for this is because your vehicle is collateral for the money you borrowed and if they need to repossess your vehicle they need to make sure it will be worth what you borrowed.
If you are required or choose to purchase collision and comprehensive coverage, the easiest way to get cheap car insurance is to request the highest deductible you can afford. Remember, you will be required to pay that deductible amount if you file a claim that is your fault before the insurance company will pay for the rest of the damages.
About the Author:
Joseph Welusz is a licensed insurance professional that writes on the behalf of QuoteMatcher.com about a lot of intriguing insurance topics. He makes it easy for you to get Free Insurance Quotes. You can always get Insurance Quotes at QuoteMatcher.com.
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