Comprehensive insurance allows auto owners to repair their vehicles when damaged from weather or natural damage and vandalism. Comprehensive insurance is one of the most used aspects of an auto policy. There are three major benefits that come from having comprehensive insurance.
- Major Peril Benefits: When it comes time to file a claim. Theft, fire damage, storm damage, and many others are covered by this coverage.
- Glass and Rental Car Benefits: Some people do not realize that some comprehensive coverage will cover a rental car. This benefit gives a driver a rental car just in case theirs is being fixed. Sometimes if you get a rental car for vacation or a trip, Your insurance covers this rental too. Always check with your agent to make sure you insurance covers a rental car in the event it is damaged. Some people are also amazed to find out that even though glass coverage is not listed on their policy it still is covered under comprehensive coverage.
- Loan Benefit: Most lenders want some kind of physical damage coverage to be on the vehicle. Comprehensive coverage satisfies this requirement making it possible to get the loan.
- Benefit of Peace of Mind: The newer the car the more concern there is from the owner about damage. Comprehensive insurance gives peace of mind that there is an option to have the vehicle fixed should the need arise from a defined peril in the coverage definitions.
Every year thousands of people are involved in a car accident. Some accidents are very costly and others only require small a small amount of money to fix. In some cases the insurance coverage is more than enough to cover all losses, and in other cases it falls short in covering all expenses. So how much coverage is enough for an insurance policy?
There are several things to think about when deciding about the amount of coverage for an auto policy. The first question to ask is “If there was an at-fault accident, what coverages would be enough to cover all the injury and damage that can occur?” In most cases, hospital bills run into the thousands and damages to property can be just as high. The state minimums are set to cover only minor expenses. Most recommendations for liability coverage are around 100/300/100. Some people will often carry the 250/500/100 limits for just a few dollars more. In some states it is actually cheaper to carry the higher coverage limits versus the minimum amounts.
One other thing to consider is “How much physical damage coverage is enough to carry on a personal auto?” The only thing to think about is whether you can handle the deductible amount in the event of a claim. If paying $500 is within your means then you can save a little on the auto premium.
Insurance amounts are designed to protect the policy holder in the event of a claim or loss. If the insurance coverage is not enough to pay all losses then the policy holder can be sued for the rest. Check with an insurance agent for what may be right for you.