Sunday, April 20, 2008

How Collision & Comprehensive Car Insurance Coverages Benefit You

Auto Insurance Coverage

The most commonly recognized coverages, in addition to the basic liability are collision and comprehensive coverages also known as other than collision coverage. This article will explain the differences in coverage and what is covered.

Collision Coverage

Collision coverage pays for physical damage to your car as the result of your auto colliding with an object, such as a tree or another car. This is relatively expensive coverage. Remember, this coverage is optional and not required by law. However, collision insurance might be required by your lending institution or lessor.

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.

Basically, deductibles reduce your premiums because you agree to deduct a set amount from the claim your insurer otherwise would have to pay. Insurance companies offer deductibles because they reduce the number of small claims, which are costly for them 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.

Joseph Welusz provides a simply way to get Car Insurance. It takes only a couple of minutes to get cheap car insurance at

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