For those with nice cars, comprehensive auto insurance should be strongly considered, as it is one type of optional coverage that helps to protect a car against all odds. Though it adds to the cost of monthly premiums, there are ways to save money on comprehensive car insurance. Following are some factors that can influence the cost of this type of coverage, and how drivers can save.
What is Comprehensive Car Insurance
Comprehensive auto insurance is a type of optional coverage that protects against the unexpected. Damages resulting from inclement weather, such as hail, flooding, and winds, as well as from so called “Acts of God,” such as falling trees, and from theft and vandalism are payed for by this coverage. Though policies covering older cars might exclude this type of insurance, it can be very handy for those trying to best protect their vehicles.
Save Money on Comprehensive Car Insurance with a High Deductible
Raising the deductible is one way to decrease the rate of monthly premiums. Doing this will cause monthly rates, which are a collection of the costs of all of one’s coverages, to drop, but it will also mean that a client will have to post more following a claim before the insurance agency issues any money. For those who do not anticipate making claims, but want to protect their cars better just in case, they should seriously consider raising the value of the deductible.
Factors that Influence the Cost of Comprehensive Auto Insurance
In addition to the value of one’s car (which certainly helps determine the cost of premiums), there are other factors that can control the costs of comprehensive coverage. Areas with frequent occurrences of inclement weather, or are prone to tropical cyclone (hurricane) activity tend to have higher comprehensive insurance rates because damage to cars resulting from weather is more likely than in other places. Also, areas with high crime rates often have higher comprehensive auto insurance rates than places that do not, because theft and vandalism are more likely to result in claims in such places.
Ways to Save Money on Comprehensive Auto Insurance
To save money on comprehensive coverage, it is necessary to combat the elements that can harm a vehicle, minimizing risk. This will cause rates to be lower. Drivers who keep their car in a garage or carport can lower the costs of comprehensive insurance, as risk of car damage resulting from the elements is thus decreased. Also having an anti-theft device in a vehicle can lower the costs of this coverage, because that can deter theft and vandalism.
Even in a regional area one can save on car insurance by living in a certain spot. For those who live in places in town where crime rates are lowest, or in places where flooding is less likely to occur, comprehensive coverage can be significantly less expensive.
As with all types of insurance, comprehensive auto insurance increases in cost as the likelihood that it will be necessary increases, because insurance agencies charge more when they know there is a better chance that they will have to issue payouts in situations where this coverage is most necessary. Consider the above factors and tips to save on comprehensive coverage.
What Is Covered Under Auto Insurance
Auto insurance is mandatory for drivers in all 50 U.S. states in some form or another. However, most drivers rarely, if ever, look at their auto insurance coverages to see exactly how they are protected financially in the case of an auto accident, natural disaster, or vandalism. This could be frustrating in an auto accident when the driver is surprised by a lack of coverage and finds he or she has to pay out-of-pocket.
Six types of auto insurance comprise every auto insurance policy. One is mandatory in all 50 U.S. states while the others are for the most part optional. Understanding these six auto insurance coverages can lead to drivers saving significant amounts of money simply by adjusting coverages, limits, and deductibles.
Auto Insurance: Six Types of Insurance Coverages
The six types of auto insurance are liability, collision, comprehensive, personal injury protection (PIP), medical payments, and uninsured/underinsured motorist coverage. All of these types of auto insurance with the exception of liability auto insurance are optional, but that doesn’t mean motorists should opt out altogether. Here’s what drivers need to know:
Liability auto insurance. Liability auto insurance covers the driver’s legal obligation to pay for damage to the other car (property damage liability) and/or medical costs (bodily injury liability) when at fault in an auto accident. Most states require drivers to carry minimum liability coverage.
Collision auto insurance. If the driver’s car is damaged in an auto accident, collision auto insurance helps to pay for the cost of repair. However, drivers with cars 10 years or older may want to consider dropping collision as any damage done to the car would likely result in a total loss.
Comprehensive auto insurance. Comprehensive auto insurance covers theft; vandalism; flooding; fire; damage from tree branches; animal strikes; and windshield chipping, cracking, and replacement. Any driver who has had to pay out-of-pocket for a new airbag knows full well the value of comprehensive auto insurance coverage.
Personal injury protection (PIP) auto insurance. If the driver and/or passengers are injured in an auto accident, personal injury protection auto insurance kicks in to help pay medical costs. PIP auto insurance also covers associated costs including lost wages, hired domestic help, and funeral expenses.
Medical payments auto insurance. While PIP pays medical expenses for the driver and passengers, medical payments auto insurance is an added benefit to help pay for bodily injury. In no-fault auto insurance states where drivers must carry minimum PIP coverage, the state pays 80 percent of medical costs with drivers left to pay the rest. Medical payments auto insurance helps to pay the difference.
Uninsured/underinsured auto insurance. If Driver A has inadequate or non-existent auto insurance coverage and strikes Driver B, the question of who pays for damages and/or medical expenses arises. In this type of auto accident, Driver B’s uninsured/underinsured auto insurance kicks in to help cover the cost of damages and/or medical expenses.
Auto Insurance: The Bottom Line on Auto Insurance Coverages
While many people feel they are simply too busy to look over their auto insurance policy and to try to comprehend the sometimes confusing terminology, it is essential to know how they are covered in cases such as car rentals and auto accidents. Furthermore, learning how to tweak liability, collision, comprehensive, PIP, medical payments, and uninsured/underinsured auto insurance can go a long way to saving money.
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