Reader’s Question:
I want to know the difference between a full coverage and liability.
Mia
Chicago IL
You need to listen very carefully when agents use the term full coverage. When you say Full Coverage, it means that your vehicle is covered by the required liability, collision and comprehensive coverage. It denotes that the value of any damage to your vehicle will be covered by the insurance company. The Liability coverage means that you are covered for any damage your car do to others, damage that you are responsible for and with out the liability coverage, the pay will be coming from your own pocket. This will amount from hundreds to thousand dollars depending on the damage you made. Collision coverage makes sure that you are covered for damages in your car that you are responsible for like getting in an accident while comprehensive coverage covers different kinds of damage that you do note have any control of like fire, theft, falling trees and even hitting animals.
Insurance companies offer different kinds of liability coverage. Some only covers body injury or damage to property but still this will depend on the insurance company. Most states will require both. This will allow you to be protected.
Liability coverage will pay for the injury and the damage expenses you caused other especially if you are responsible for these. The injuries will cover hospital bills and possible the lost wages of that person. The damage expenses or Property Damage will cover you if you caused damage to other property. Usually it’s another car that you got into an accident with but it could also be a house, a mailbox, or even a garden.
You must remember that most states allows driver to sue other drivers who injured them in car accidents and the liability coverage has limits. Your liability coverage may not be enough to cover you for the damages you cased other people or other properties.
August 4 2009 by author in Uncategorized |
Reader’s Question:
What are the factors affecting auto insurance comprehensive coverage?
Rachel
Boise ID
Auto insurance comprehensive coverage is by the most expensive and yet, the most common auto insurance coverage being used by almost all auto insurance agents and their clients. By definition, this coverage provides full coverage to your vehicle and passengers in the events of accident, fire, flood, theft and the likes. Going online is the best way in finding the best auto insurance comprehensive coverage. Oftentimes, the term “comprehensive” simply applies to thorough physical damage in the event of loss to the vehicle itself. This basically provides a thorough and pretty broad coverage. A broad range of coverage basically covers the final premium to be paid. You can adjust by picking and choosing, then requiting and eventually come up with a customized policy that fits you and hopefully, your pocket.
The law requires that you to carry a minimum liability. Most lenders who finance your vehicles insist in getting auto insurance comprehensive coverage and collision during the time they are financing your auto to protect their investment. Once the loan has been paid, you are not mandated to provide the coverage. Of all the factors available, this part is probably the steepest.
The cost of insurance is affected by age .If you are 25 and below and would want to apply for insurance, your insurer will likely provide you a costly insurance. Same with driving history, you have to keep a good and clean driving record in order to gain trust and for auto insurance companies to perceive you as responsible and less risky. The type of vehicle you are about to insure is also another factor. Sports utility vehicles are insured at a much higher cost compared to your mom’s old band wagon. This is due to the fact that with its immense size and weight, it has bigger tendencies of over rolling other smaller vehicles thus causing further wreckage not only to the vehicle, but also to its passengers and other properties. Therefore, it is wiser to check quotes online before you purchase a vehicle because in some cases, you could be in for a huge shock and may want to re-think your choices.
July 6 2009 by author in Uncategorized |
Reader’s Question:
I have collision coverage insurance on my policy. I want to keep it but I would like to know if there is any way I can lower the cost of my collision coverage.
Viktor
Omaha, NE
If you want to lower your collision coverage insurance, you can raise your deductible on your policy. You should also choose a less expensive car so you can get lower car insurance rate. Ask for any discounts that you may be eligible of to reduce the cost of your car insurance.
Car insurance deductible is what you pay out of your own pocket before your insurance policy kicks in. If you choose the highest deductible that you can afford, it will lower your premium. For instance, a $500 deductible will lower your car insurance payment. The rule of the thumb is: the higher the deductible, the lower your premium.
If you have an older car it may not be worth it to buy collision coverage insurance on it. So it is best to determine the actual cash value of your vehicle. If you ever file a claim for significant damages, your insurer will likely declare your car a total loss rather than have it repaired. That’s because the cost of repairing your car exceeds its actual cash value.
June 4 2009 by author in Uncategorized |
Reader’s Question:
What is the difference between collision and comprehensive coverage?
Bill
Buffalo, New York (NY)
A collision insurance coverage protects your car from damages caused by collision with another object or another car.
On the other hand an auto insurance comprehensive insurance protects your car from damages caused by vandalism, theft or glass breakage.
If you are leasing your car, usually your lien holder will require you carry these coverages. The reason for this because they cover the car up to its actual cash value (ACV). The car technically belongs to the lienholder.)
If your car is paid for, you have an option to buy comprehensive and collision coverages of just go with the minimum liability coverage. Most insurance providers will require you keep the deductible amount the same for both collision and comprehensive coverage. To be able to know if these coverage are worth getting, you will need to weigh the value of your car against your deductible amount and the premium you will be paying for the coverage. If you have an older car, it is advisable to just remove the auto insurance comprehensive and collision coverage.
February 23 2009 by author in Uncategorized |
Reader’s Question:
Is it worth purchasing a rental car insurance coverage?
Nicole
Sacramento, CA
Ask your current car insurance company first. Purchasing rental car insurance coverage won’t be necessary if your current car policy covers rental cars. However, if your own insurance policy covers rental cars, it’s a good idea to check if you have a collision and liability coverage. To refresh your memory, collision coverage means your car insurance company will pay for any damage done to the vehicle you’re driving and if you have done damage to someone else’s vehicle, you’re liability coverage will have it covered.
So, if your current insurance policy covers rental cars, and has collision and liability coverage, the next step would be to check what your limit is when it comes to collision coverage. Here is an example scenario; lets say you rented a car that cost $20,000 and your current insurance policy only covers damage expense worth $2,000, the remaining balance will come out of your pocket, so check you’re limitations.
Now, if you think rental car insurance coverage is the way to go, you still need to ask a few questions.
Is there any exclusion on their collision coverage? There are instances that tires or windshields are excluded on their policy, so read the exclusion page thoroughly.
And one last reminder, even though you purchase a rental car insurance coverage, in an occurrence of an accident, your no claims bonus will get tainted and a price increase in your insurance cost will still occur.
February 20 2009 by author in Uncategorized |
Reader’s Question:
Should I purchase full coverage on my 15 year old vehicle in West Virginia?
Ben
Charleston, WV
Yes, you can purchase full coverage on your 15 year old car with most auto insurance providers in West Virginia. Most insurance providers will let you to buy the least state minimum auto liability requirements and the Physical Damage coverages of Comprehensive and Collision.
If you are planning to purchase these optional coverages on your 15 year old vehicle make sure it is economical to do so. You need to determine the fair market value of your vehicle and check if the cost to get full coverage insurance on your vehicle will not cost more than the actual cash value of your automobile.
You may prefer to purchase the state minimum liability coverage with the insurance company in West Virginia and then buy a classic vehicle insurance policy for the physical damage.
Reader’s Question:
Would there be any difference if I get a Comprehensive Vehicle Insurance policy, as compared to a regular policy, for my car here in California?
Arnold
Los Angeles, CA
Very good question! and I’m glad you brought it up since many people out there are actually confused about the difference between a regular car insurance policy, and a comprehensive vehicle insurance policy. A typical vehicle insurance policy consist of different sets of ‘coverage’ clauses, each specifically designed to address a specific event that could cause you to lose some, or the total value, of your vehicle. A comprehensive vehicle insurance policy is a type of vehicle insurance that combines all sorts of ‘coverage’ clauses or policies to give you as much protection as could be thought of, from as many foreseeable events and accidents as possible, that could compel you to file for a car insurance claim in the future.
Although comprehensive vehicle insurance seems to be the most obvious choice, many people would find the price for such a complete insurance ‘package’ steep. This is especially true for those wanting to insure a fairly expensive vehicle, or those who may have not had as good a driving record as they would have liked to have.
This is why you need to know how to effectively search for your next vehicle insurance coverage. Companies determine your rates by using many different factors and each will have its own way of computing these factors into a premium. The difference vary greatly and could mean hundreds of dollars saved on yearly insurance costs. The most convenient way to do this is to use the free insurance quote tool found on this website to help you find the best rates, as well as compare many different companies simultaneously.
February 5 2009 by author in Uncategorized |
Reader’s Question:
I want to have an auto insurance yet I’m still in doubt of the whole system. As a new driver, how much auto insurance coverage should I carry?
Maria
Baton Rouge LA
To determine the needed coverage for your auto insurance you need to consider several factors like state requirements, vehicle type, deductibles and coverage limits.
Every state requires a minimum liability coverage for vehicle owners. Check first your state requirements before choosing your coverage. You can ask the registry, local Department, brokers, agent or check online insurance site of your state. Vehicle type also affects the type of insurance coverage that you might consider. Large vehicles need higher coverage compare with smaller cars.
If you own financed or leased vehicles, there is a need to add comprehensive and collision coverage in your auto insurance. Consider an auto insurance coverage that you are comfortable of paying. Higher coverage basically costs much but the limits are also higher.
It is best to consider your financial situation before purchasing auto coverage insurance with lower limits. In case of accidents or mishap, lower limits cannot provide you sufficient funds to cover up for personal injury and property damages. Although you could save at first, the tendency is you will spend more on the latter end.
January 31 2009 by author in Uncategorized |
Reader’s Question:
I just want to know what the available auto insurance coverage is.
Rodney
Burbank, CA
It is to one’s own awareness that liability auto insurance coverage pays up to the specified limits and limitations of bodily injury and property damages incurred by third parties if the insured is found liable as a result of an automobile accident. The liable party would be responsible for paying the third parties’ damages and may be forced to pay from the equity of a house or vehicle, if without coverage.
1. No Fault Insurance coverage- this is also known as Personal Injury Protection or PIP. This is a coverage which applies to a driver, passengers and any pedestrians involved in an automobile accident. Medical expenses, loss of wages, and other related injuries are being paid up regardless of who is at fault and even if there is negligence involved.
2. Medical payments auto insurance portion- a policy that is designed to pay some of the medical consequences that resulted from an accident such as medical bills and/or funeral expenses up to the policy limit.
3. Uninsured motorist auto insurance- this does not only insures against the “Uninsured motorist” but also protects policy owners against the “Under-insured motorist”. This is optional; however, it is recommended that it be added to a policy in the best interest of the insured.
4. Comprehensive and collision auto insurance coverage- this is also referred to as “Physical Damage”, this covers damage caused by anything “other than auto collisions”. There are, however exclusions under comprehensive coverage and some of the more common ones are ,theft, fire, vandalism, collision with animal, windstorm, flying objects, hail, broken windows.
5. Rental car coverage- this coverage pays for the rental of a vehicle in the event the policy owner’s vehicle be stolen or in an accident. Availability of this through your insurance company may provide reimbursement for costs paid towards a rental car while the vehicle is being repaired or if stolen, while the claim is settled.
Additionally, the Internet is also a great source to instantly compare auto insurance coverage available from multiple brand name companies.
January 31 2009 by author in Uncategorized |
Reader’s Question:
Just wanted to clear out how much protection does coverage provide and who might be benefiting from buying an auto insurance comprehensive coverage?
Justine
Miami FL
It is a known fact that auto insurance comprehensive coverage is packaged into different coverage types. Usually the easiest way to determine what you are required to purchase are being provided. It is important that you determine what you have that needs to be protected. Purchasing insurance is to protect yourself, to protect your family and at the same time your car.
There are a lot of these types of protections of which we have the Physical Damage coverage which more likely covers your vehicle, and other vehicles in limited scenarios, you may be driving for losses resulting from incidents other than collision. Example for this one is that auto insurance comprehensive coverage takes the damage to your car if it is stolen; or damaged by flood, fire, or animals. At the same time it pays to fix your vehicle less the deductible you choose. In order to keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket.
Typically the amount refers to the deductible, or the portion of a claim you are responsible for paying. It is known that a higher deductible can substantially lower the cost of insurance premiums. Thereby a person should balance this savings against your ability to absorb a larger out-of-pocket expense.
At the same time if your car is financed or leased, the finance company will probably require that you carry this coverage, but then if you have a newer vehicle or one in excellent condition, you may need this coverage to replace or repair the vehicle in case of loss. In situations when you have an older car or one in poor condition, you may not want to pay for this coverage