Monday, March 2, 2009

Comprehensive Car Insurance: Things You May Not Have Grasped

By Chimezirim Odimba

Comprehensive car insurance pays the costs for damage or even offers dollar replacement of a totaled vehicle in the event that it is damaged by things besides car accidents. Unforeseen events such as wind, flood, earthquake or weather damage might be covered by this insurance, in other words, events that the owner can not be held liable for. If you have a lien against your car then you will have to buy comprehensive insurance as a requirement.

Until the car loan is paid in full, you will have to maintain your comprehensive policy. Comprehensive coverage is a good idea for those that own pricey or luxury cars where no loan exists as it provides protection. It's hard to put an amount on comprehensive insurance since it is so unpredictable.

There are some ways to reduce the price. Comprehensive policies always have deductibles that have to be met. Once damage has gone above the deductible amount that is required, protection would begin.

$250 US and $500 US for each claim are the most common amounts for deductibles. In general you will spend more for a comprehensive plan when your deductible is less. A benefit to smaller deductibles is that several body shops might not claim them if they have to do major repairs on your car.

When considering deductible, consider how much money you have to potentially lose or need to spend if a car becomes seriously damaged. When you can easily afford a high deductible, it may make sense to choose this and thus save money on comprehensive insurance. Moreover, you ought to think about the worth of your automobile.

Once you're not making payments on a vehicle, especially if the car isn't worth much, comprehensive coverage might end up costing more than it could potentially save. It may not be wise to buy comprehensive insurance for a vehicle that is only worth a couple thousand bucks, since you could pay more on the payments than you would to repair the vehicle. More often than not, collision and comprehensive car insurance is presented in a package, though it is possible to buy the two kinds of coverage individually.

Comprehensive auto insurance covers theft, fire, vandalism, weather damage, riots, missiles, and other similar circumstances which may cause damage to a vehicle. Comprehensive auto insurance does not usually cover acts of God, theft or vandalism by family members or employees, contents of the vehicle, tires, or damage due to improper maintenance.

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