Choosing Excellent Insurance Coverage

4 Things To Know About Comprehensive Auto Insurance Coverage

Auto insurance comes in so many types and forms and can be extremely confusing to a lot of people. Because of this, it is often hard to know if you have the right types of coverages on your policy or not, and one type that you might not completely understand is called comprehensive coverage. If you do not fully understand this type of coverage, here are four things you may be wondering.

It is not a requirement if you own your car outright

First of all, if you have the title to your car, you do not have to purchase comprehensive auto insurance coverage for your vehicle, but you can if you would like. Comprehensive is never part of the state-mandated coverage, no matter where you live, but it is always a type of coverage lenders require for people with auto loans. Even if your car is paid off, though, it can be a good type of coverage to buy.

It covers the gaps

The main reason to buy comprehensive coverage is to fill the gaps. If you have collision coverage, you are protected if you cause a collision, as this type of coverage provides compensation for the damages you cause to your own car. Comprehensive is different, though. It covers things that collision coverage does not always cover. Some of the things comprehensive covers includes animal collisions, theft, window damage, and damage from theft or vandalism. If you want to be protected if any of these things happen, you would need comprehensive coverage.

You choose the deductible

If you decide to add this to your policy, you should know that you can choose the deductible amount, and the amount for your comprehensive coverage can be different than the amount of your deductible for the collision coverage you have.

You should always think twice before filing a claim for it

Whenever you experience damage to your car, you should always think twice before filing a claim to your own policy. The main thing to consider in this situation is the amount of damage your car experienced. If it is less than your deductible amount, or even close to it, it may be better to pay for the repairs out of your own pocket than to take the risk that your insurance rates will go up if you file a claim for it.

Having comprehensive coverage with your auto insurance is often a great idea, but it is not necessarily for everyone. To learn more about the best types of coverages for you and your family, talk to an insurance agent today.

For more information, contact a company like Affordable Insurance.