Many of you are wondering how does comprehensive insurance on your car work? To understand comprehensive coverage, you need to know that there are four parts: insurance limit, deductible, coverage and claims.
The limit is the first order of business. How much coverage do you need. If you have a car that would be expensive to replace or repair, you need a higher limit. Also, if you have significant assets to protect, you’ll want high medical limits because anything over the insurance coverage’s limit comes out of your pocket.
Next up is the deductible. The deductible is the amount you pay before the insurance kicks in. The higher the deductible, the less you pay in monthly insurance premiums. A $500 or $1000 deductible is standard. If you have tickets or accidents on your record and your insurance is sky high, you might consider a higher deductible to lower the cost of insurance.
Next comes coverage. This is what happens to your car when you are not in it. For instance, if a tree falls on your car and nobody’s around – the insurance pays! And, if vandals smash in your windshields, you’re covered. This portion of your insurance does not cover accidents or other problems when you are actually in the car.
The last item is claims. You need to consider what kind of customer service you are going to get if anything bad does happen. For instance, some companies pay out promptly while others drag their feet. Some have reputations for being fair with their reimbursements while you have to fight with others to get what you deserve. Another big warning sign: one company has been sited for sending their customers to unlicensed repair shops.
If you are thinking of getting insurance beyond the strict liability policies required by most states, look into comprehensive insurance. And that is the answer to how does comprehensive insurance on your car work?
how does comprehensive insurance on your car work? is just one of the questions answered at the Auto Liability website found at http://AutoLIabilityInsurance.org
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