Posts Tagged ‘Comprehensive Car Insurance’

Car Insurance Myths

Monday, April 23rd, 2012

An insurance policy can seem like a maze of mysterious factors leading to your premium and a complex array of different rules as to what is covered. You’ll find that car insurance rates vary widely from place to place, but some things are standard across the board. The best you can do is have realistic expectations for your policy. Beware: believing one of the following common car insurance myths could end up costing you a lot of money and aggravation!

Myth #1: Car insurance covers me if my car is stolen or vandalized.

Only people with comprehensive coverage will be protected in the event of theft, fire, hail damage, or intentional damage from vandals. Most states only require liability coverage to protect others from damage you’ve caused. If you hit a deer while driving, your collision coverage will take care of that. However, if your car is at rest and your dog jumps up, swiping his paw across the door, you will not be covered — unless you have comprehensive coverage.

Myth #2: Insurance will pay off my loan if my car is totaled.

A car is determined “totaled” when the cost of repair exceeds the car’s value. Many people are excited by the possibility of receiving a large sum of cash, but they must keep in mind that this isn’t all money in their pockets for a new vehicle. They will factor in depreciation, but you will be responsible for paying the outstanding amount due on your original vehicle loan. The only way to be fully protected in this scenario is to purchase “gap insurance.”

Myth #3: Car insurance pays for rental cars if my vehicle is damaged.

Not all car insurance automatically covers the use of a rental car. Many policies will let you add this optional coverage for an extra $1-2/month. Often when you are seeking car insurance quotes and selecting your preferred level of coverage, you will see this question come up. Keep in mind that  there are limits for how much you can be reimbursed for rental cars too. For instance, GEICO only reimburses you up to $25 per day to a limit of $750 per accident.

quotes for car insurance

Think you're guaranteed a rental car? Presume you'll walk away with $5,000 to buy a new car, even though you're still paying on your loan? Guess again! Check for car insurance quotes to dispel a few common myths.

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Posted in Car Insurance Rates, Discount Car Insurance, General Car Insurance |

Does Auto Insurance Cover Under the Hood Damage to the Car after an Accident?

Wednesday, March 28th, 2012

No driver wants to think about the possibility that he or she will be involved in an accident, and the question, “Does auto insurance cover under the hood damage to the car after an accident?” is an important one. If a driver has been involved in an at-fault accident, he or she must have physical damage coverage in place to pay for repairs to the vehicle.

If the owner has the right kind of coverage in place, the insurance company will pay for visible damage as well as problems under the hood. The driver will want to make sure the car has been examined carefully by a licensed mechanic. This inspection will reveal any problems with the car caused by the accident. If the additional damage was discovered after the insurance company has made an offer to settle the claim, the owner should contact the insurance company to advise it of the additional damage and to ask that the estimate for repairs be adjusted.

Collision Insurance for Under the Hood Damage

If the under the hood damage was caused by striking another car or an object, collision coverage would be used to pay for it. The vehicle owner would be responsible for paying the policy deductible and the insurance company would be responsible for paying the balance, up to the policy limit which is in place.

In a situation where the damage to the car is extensive and it is declared a write-off, the insurance company’s offer to settle the claim will be based on the car’s cash value at the time of the accident. The company will do some investigating to find out how much similar vehicles (make, model year, amount of mileage) would cost to purchase before making an offer to settle the claim. The owner will not receive the amount he or she paid for the vehicle or the cost to buy a new car.

Comprehensive Insurance for Under the Hood Damage

Not all damage to a vehicle is caused by a collision, and comprehensive coverage pays out when the loss is due to other types of events. Hail, wind, flooding or striking an animal could cause damage to the car’s inner workings.

New car owners who have taken out a loan to finance their vehicle will need to keep full coverage (collision and comprehensive protection) in place until they have paid it off in full. The lender wants to make sure that its investment is protected if a loss occurs. If the car is a write-off, the insurance company will reimburse the lender for the cash value of the vehicle. The owner would still be responsible for paying any outstanding balance on the loan, if he or she does not have gap insurance coverage in place to cover it.

Collision and comprehensive coverage will pay for visible as well as under the hood damage to a vehicle. Make sure that both types are addressed following an accident so that the car is repaired properly.

 

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Posted in General Car Insurance |

What is Comprehensive Auto Insurance Coverage

Tuesday, January 10th, 2012

A number of drivers wonder what comprehensive auto insurance coverage is and what it covers. This type of protection is an example of insurance which pays out for damage caused to your own vehicle following a loss from an event other than a collision.

Auto Insurance Basic Components

An auto insurance policy is made up of two basic components. Liability coverage pays for claims made by the occupants of the other vehicle involved in an accident for personal injury and property damage claims, including repairs to the other driver’s vehicle.

Physical damage coverage is the component to a basic auto insurance policy. It includes comprehensive protection, which pays out for damage caused to the vehicle by striking another vehicle or an object. The comprehensive coverage portion of the policy pays for the cost of repairs the vehicle for losses not covered under the pollution portion of the policy.

Types of Losses Covered under Comprehensive Auto Insurance

Comprehensive auto insurance coverage pays out with the following types of losses:

  • Damage from an animal
  • Falling objects
  • Fire
  • Flooding
  • Hail
  • Rioting
  • Theft
  • Vandalism

The comprehensive part of an auto insurance company covers physical damage to the vehicle only. It does not provide compensation for any personal items which were damaged, destroyed or stolen.

These items may be covered under a homeowner’s or tenant’s policy, and a driver should check with his or her auto insurance provider to confirm whether this is the case. The driver of the vehicle has an expensive stereo system installed in it, it may make sense to have this item covered under a separate policy which protects personal possessions.

Comprehensive Coverage Rates

Rates for comprehensive violations coverage are determined by a number of factors. The insurance provider will consider the applicant’s age, driving record, and the make and model of the car. Other factors which are used to set rates in this instance include the estimated annual mileage and where the owner lives. Customers who live in urban areas may be charged higher rates than their rural counterparts, since the likelihood of experiencing a loss increases in cities.

The cost of comprehensive coverage also depends on the amount of the policy deductible. A customer who chooses a higher policy deductible can qualify for better rates on his or her coverage, since this driver is personally assuming a higher level of risk than someone who chooses a lower deductible

Do You Need Comprehensive Auto Insurance Coverage</b?

This type of auto insurance coverage is not required under state law. However, if you took out a loan to pay for your vehicle, the financing company may require you to keep it in place until you have paid it off in full. The lender will want to be sure that it is protecting its own interests if a total loss occurs.

For an older vehicle with a low cash value, you may want to consider limiting the comprehensive coverage to fire and theft only. This strategy will help you save money while still keeping some protection in place if one of these losses occurs.

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Posted in General Car Insurance |

How Do I Choose a Car Insurance Company

Monday, October 10th, 2011

Choosing a car insurance company may seem intimidating for a first-time buyer. Some planning is necessary to make a good choice about where to buy coverage. Although different insurance companies may offer similar products, they vary in the rates they charge and the policy provisions they offer to their customers. The way to find the best combination of a good level of coverage and affordable rates is to be prepared to shop around and consider several options before choosing a company.

Car Insurance Coverage Options

In most parts of the United States, car insurance buyers must have at least a minimum level of coverage in place to stay legal. Insurance companies are required to offer quotes for at least this level of protection to all prospective customers.

Bodily injury and property damage liability coverage will likely be required for all drivers. Bodily injury liability coverage pays for claims made by the occupants of the other vehicle following an accident. It pays for medical bills, rehabilitation costs and lost wages incurred by accident victims. In some states, a person who has been injured in an accident can sue the at-fault driver in an accident for compensation for pain and suffering.

Property damage liability insurance coverage pays for the cost to repair or replace someone else’s property following an accident. It is used to pay for repairs to the other driver’s vehicle. The property damage liability portion of the policy also pays for the cost to repair or replace public property damaged in the accident, including buildings, fences, guard rails, sidewalks and sign posts.

Collision and Comprehensive Coverage

Along with liability auto insurance, a buyer may want to consider buying physical damage protection for his or her own vehicle. Collision coverage pays for damage caused to the owner’s vehicle by hitting another vehicle or an object. It also pays for damage caused in a rollover accident.

Comprehensive auto insurance coverage pays for damage to the policyholder’s vehicle caused by events other than a collision. It pays for the cost to repair the car if it is damaged by wind, flooding, falling objects, fire or vandalism. This is also the part of the policy which pays out if the car is stolen and not recovered.

Comparing Car Insurance Companies

Before choosing a car insurance company, a consumer should make a point of getting quotes from several of them before making a decision about where to buy a policy. Each company determines policy terms and how much it will charge for coverage independently. Prices will vary, depending on the provider, and shopping around will help a consumer find the company which can offer the best deal on coverage.

When trying to find the right car insurance company, a prospective buyer should also consider how well the company treats its customers. Consumers need to consider pricing when choosing coverage, but they should also look at whether the companies they are considering get claims settled quickly and efficiently before making a final decision.

 

 

 

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Posted in General Car Insurance |

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