Many people carry only the state minimum coverage on their vehicles, but for those who want (or need) to carry more insurance, the differences between collision and comprehensive can be confusing. Fortunately, a good agent can help you get just the right coverage, so you don’t have to worry about whether you have the correct auto policy for your needs. Keep in mind, if you finance your vehicle you’ll normally be required to carry both comprehensive and collision insurance on it until it has been paid off. That’s designed to protect the company you’re making payments to, in case something happens to the vehicle.
Collision insurance is very specific. It protects your vehicle if you get into an accident, no matter who’s at fault. If another driver hits you his or her insurance should pay to fix your vehicle, but what if that driver doesn’t have insurance? It’s generally not legal to drive without insurance, but many people still do it. If you’re hit by someone who doesn’t have coverage on his or her vehicle, it’s quite possible you’ll simply be out of luck with getting your auto fixed unless you have collision coverage. Especially if your vehicle is relatively new and still worth thousands of dollars, it’s a good idea to carry collision coverage.
Comprehensive coverage is more about issues like fire, theft, and glass breakage. These problems are not covered under standard PIP and liability insurance policies, but it’s a good idea to have this coverage. Generally it’s not that expensive, and can protect you if your car is stolen or if it catches fire. Some policies cover fixing chips and cracks in the windshield and some don’t, but all policies cover serious issues of glass breakage like smashed windows or a windshield that’s too badly damaged to simply be repaired.
Understanding the difference between the various types of options for protecting your vehicle is very important, so make sure you pay close attention to the information provided to you by your agent. Don’t be afraid to ask questions if you’re unsure about something. That way, you’ll have peace of mind that you’ve gotten the policy that’s really right for you.
You may be wondering what to do if your car was damaged by towing. Depending on the extent of the damage, and whether you can prove when the damage occurred, you may be able to file a claim with either your insurance company or the towing company directly. You will also need to go check on your deductible and see if filing a claim will actually benefit you or if the damages are less than the deductible.
Before you have your car towed, you need to take pictures or video of the vehicle in-case there is car damage after the towing has occurred. Sometimes the towing company will take their own pictures and document any damage to the vehicle to protect their own liability. Unfortunately, sometimes disasters occur and your car may be damaged. If the towing company acknowledges fault, you should be able to make a claim directly with the company. If they do not want to pay, you will need to file a claim with your insurance provider. This is usually considered part of your collision coverage, but you will need to check your policy to make sure you can file a claim. If you do not have the patience to deal with the towing company, you may be able to file a claim with your insurance company and they will work with the towing company for you.
If you do not know what to do when there is car damage with towing, it is probably best to talk with your insurance carrier. Remember when you are shopping around for auto insurance rates, if you want to be covered for this type of damage, you will need collision insurance. By comparing quotes with several providers, you can find a premium you can afford to pay that will also give you the coverage you need.
There are lot of factors that has to be considered when you are buying insurance for a new car. It requires lot of research to end up with a best insurance company. The important factor to keep in mind is that we should always look for insurance company which offers us the affordable level of monthly premium an d they should also provide you with the required coverages which can protect you from the natural disasters and unforeseen damages.
Factors to Consider Before Buying Insurance
The comprehensive and collision car insurance needs should be considered first. In most of the states, liability coverage is made mandatory in your insurance. So people start to ignore comprehensive and collision insurance which are provided by many car insurance companies as total insurance. They provide protection against collision with objects which are immovable or unforeseen disasters or damages caused by floods, fire, vandalism or hurricanes. So decide whether you need to choose this coverage or not, especially in the places where the natural disasters or the road accident rates are very high.
The pending loan amount on your new car is another thing that should be considered when your buying insurance coverage. You should be aware that the car value can sometimes get depreciated faster than the loan amount, so be careful when you have the huge loan amount. In such cases, the situation may rise where the loan amount value will be actually less when compared to the market value of the car based on the condition and the mileage of the car. Special insurance can be taken to covers the gaps.
Deciding on Protection
When you purchasing the car insurance, important part is to decide what you need and what you don’t need. Look at an example, you may need assistance on roadside coverages if you are traveling by road often. In the same way, you may also need car coverage for rental if you can’t afford to leave without your car even for a day. Some people also busy car coverages for specials cases like accidents caused due to the fault of a non- insured driver. In this case uninsured motorist insurance will become handy. Therefore you have to figure out what type of protection you might need and the coverage that may be unnecessary or superfluous to you.
If you are having a new car it is better that you should select full coverage auto insurance. There is nothing technically called as full coverage insurance. So it is very important that you understand there no insurance policy which can be so very broadly ambiguous. Just on the other side, one should see for full coverage auto insurance in a compound of both compulsory components of car insurance and also for your benefits.
Mandatory – Liability insurance for Third Party
The liability insurance for third party is the initial part of full coverage auto insurance. It is compulsory by law and auto owners buy this insurance just in case to be on the safer drive and to drive safely in the state. This coverage insurance gives protection to the other party if your the cause for the accident. It is the required minimum insurance coverage for every car owner. Anyways, a lot of auto owners only have this insurance coverage and forget the other factors that are necessary for their own financial gain.
Comprehensive and Collision Insurance Coverages
The full insurance coverage includes collision insurance and comprehensive which are the important elements that every car owner should have. It is not mandatory by law, and in future it is surely going to help you, particularly if you have an highly expensive car, and the of that car would be repair extremely costly. With these factors are covered both for natural calamities and disasters and road accidents as well. The collision insurance coverages actually covers for all damages to your car in a road accident. However, your car can also be damaged due to collision with an immobile object like wall or tree.
If there are any road accident you will be eligible to get coverage or compensation from the insurance company, regardless of who is at fault. It is a good option when you want to repair your car and get back to normal.
Floods, cyclones, hurricanes and earthquakes are Natural disasters which will also be a reason for the loss of property. Comprehensive insurance coverage will assure that you would need protection for all such natural disasters. An simple example of unexpected accidents which includes a causing a lot of damage, tree falling over your parked car, repairs of which could be beyond what your limit. Full coverage looks very unlikely, but this insurance will prove profit in the long run.
Have you ever wondered how insurance companies determine home and auto insurance rates? Naturally, the types of coverage you have and the amount for which you’re covered play a large part, but insurance companies look at more factors than the combined costs of, for example, bodily injury liability and collision insurance. What follows are five factors that affect your home and auto insurance rates.
- Marital status. Whether you’re single or married plays a large part in determining your insurance rates. In general, married customers are perceived to be more stable and less of a financial risk than single people, so they get lower rates.
- Number of dependents. If you have a family that depends on you, you’re more likely to behave responsibly, which results in lower rates. However, you probably also want more coverage to make sure your dependents are taken care of in the event of a major accident, so that can result in higher premiums.
- Property value. No matter whether it’s your car or your home, its replacement value is an important factor in determining your insurance rates.
- Location. Where you live is important for a number of reasons: crime rates, natural disasters, and distance to fire and police stations. Obviously, the safer your location, the lower your insurance rates.
- Your credit score. In all but three states, insurance companies consider your credit score as an indicator of your financial responsibility. A high credit score results in much lower insurance rates.
Just about everyone these days has had to pay closer attention to the price they pay for the goods and services they want and need. Whether we are purchasing a plane ticket, buying a TV or shopping for groceries, we are always looking for the best price possible. That is also very true when shopping for insurance. The following are some helpful tips for shopping for cheaper insurance in Texas.
In a competitive market in which there are many insurance companies from which consumers can choose, each insurer may have quite different prices on similar insurance coverage. They may prioritize risk differently when evaluating each person, which can lead to placing that individual in a different risk category. The more one is willing to shop around and compare prices, the better the deal they might find.
Texas insurance companies are always offering discounts based on the applicant being able to meet certain criteria. Statistical data shows that people with an unblemished driving record are a better risk than those that have had moving violations or been involved in accidents. They also show that young drivers are high risk, but students that earn high grades in school are lower risk. Look for insurance companies that reward you for your positive actions and activity.
Buying insurance coverage for two cars can result in a significant reduction in cost per car for insurance. For example, you might be able to insure one car for $1,000, but if you add a second car, the total bill would only be $1,500. That would work out to $750 for each car insured.
Do Not Buy Too Much Insurance
Some people mistakenly over-insure themselves by buying more insurance than they need. Why pay $200 for comprehensive and collision insurance on a 20-year-old car that is only worth $500. Think before you buy.
If you are looking to buy auto insurance in Texas, here are the top seven things that you must know.
1.) Don’t even try it if you have a DUI. Ain’t’ gonna happen.
2.) Speed demon? Don’t do it. You think your first car is fast? Texas cops drive really fast cars, so they are both non-impressed and eager to ticket you if you go flying by them while they hide in the bushes.
3.) At the very least, you must have liability insurance in Texas. Liability insurance means you have the auto insurance required to cover any damage to another car for which you may be liable. There are many Texas auto insurance agencies who specialize in liability, but be sure to read the fine print, as you may be signing up for a gargantuan deductible.
4.) “But who is gonna fix my car?” you ask. Well, you have to have collision insurance in order to have your expenses covered or partially covered.
5.) If you have comprehensive coverage, this insurance will pay to have your car replaced should it be totaled.
6.) If you owe money on a vehicle you are driving, it is smart to have comprehensive and collision to protect your investment. If you are paying on a bank note, it’s the law to have comprehensive and collision.
7.) Don’t mess with Texas. They are very serious about drivers being properly insured. It is not worth the tickets and court costs to try to “slide by” without insurance. They will catch you.
Let’s face it. Most of us would much rather be strapped to a dentist’s chair than shop for car insurance. It’s over a lot quicker, and what’s more you don’t have any decisions to make—that much is up to the doc’s expertise. Not so with car insurance, where the less you know about the different types of coverage, the worse off you are. Here’s a quick rundown of the most common coverage options offered by car insurance companies, and what they mean.
This is not legally required, but most lenders will require that you have collision insurance as a condition of your car loan. It always comes attached with a deductible, and covers damages up to your car’s book value.
This pays out damages against bodily injury or property damage that happens if you’re at fault for an accident.
This is important because of the high rate of people driving around without insurance. It covers medical bills for you and your passengers in the event that you’re hit by someone that doesn’t have insurance, or whose insurance isn’t enough to cover the damages.
This term is used to describe “everything else.” It covers damage to your car that didn’t happen as the result of an accident—such as fire, flood, earthquakes, high winds, vandalism, and even unexpected run-ins with animals (deer being the most often reported). Comprehensive also covers you against theft and, like collision insurance, comes attached with a deductible.