Did you know that it is required by law that any financed vehicle have insurance? The reason for this is quite simple.
The lender – usually the bank – is trying to protect its investment while you’re still paying it off. Moreover, you do not want to be in a situation where you crash the car or have it stolen and still be held responsible for it. The bank wants to make sure they get their money back should anything go wrong – that’s where insurance comes into play. Before we dive in, let’s take a look at what auto car insurance is.
Insurance is an arrangement by which a company undertakes to provide a guarantee of compensation to another party (insured) for specified loss, damage, illness, or death in return for a payment of a specified premium. In hindsight, insurance is some form of protection that shields you from the financial burden you would have incurred on the property if things go wrong.
Now there are several types of insurances, but our focus will be on comprehensive car insurance. We will also talk about a few things surrounding the topic so you can get a full understanding of the package.
Comprehensive Car Insurance: An Overview
In simple terms, comprehensive car insurance is a complete cover for the vehicle, and this is going to guard against fire, theft, the total loss due to accidents, and natural causes. It is not going to cover mechanical issues like faulty breaks or tire blowouts, that’s why motor and service plants exist, but it is going to protect you in the event of an auto accident.
It covers every form of damages incurred due to an accident. Well, except for accidents due to collision with a third-party. The third-party could be another car you bumped into, or the wall you drove into or the streetlight you happen to take out. However, it still covers accidents resulting from some unconventional collision.
To better understand comprehensive insurance coverage related to the collision, let us lead with this illustration. Say you are driving on the freeway. For some reason, you mistakenly hit a deer, or a moose, the question people with comprehensive insurance tend to ask is, “will my insurance cover the damages to my car in this situation?”
Yes, it will. This is because the company does not expect you to hit an animal on the road intentionally. Besides, there are instances where you will be driving at night, and a deer comes out of nowhere. Before you are aware enough to slam the brake, you’ve collided with the animal.
What about things like an act of nature, like flooding, fire, hail, or a tree falling on your car, will comprehensive insurance cover that?
Most times, yes. It’s even the very basis of comprehensive car insurance coverage. However, there are instances where an act of God isn’t covered; you need to read the fine details in your insurance policy.
Before the insurance company takes over your claim, they will first launch a massive investigation into how negligent you were. If the situation is entirely outside of your control, they will, of course, payout.
However, they are going to look for a reason not to. That is why you need to use an insurance company that is trusted and will not leave you stranded in the occurrence of an accident.
Best Car Insurance WSA is a typical example of insurance companies that offers you fair deals on your insurance policies and stand by their word. Unlike most insurance companies that include some fine prints in their systems that will excuse them from paying certain damages, Best Car Insurance WSA gives it directly. No cutting corners.
Now that you have a basic understanding of what comprehensive insurance covers, let’s take a look at how this insurance program works.
How does Comprehensive Insurance work?
Insurance companies that offer comprehensive insurance coverage pay what is called a coverage limit, which is the maximum amount your insurer will pay per claim.
The limit for comprehensive coverage is simply the depreciated value or the vehicle’s actual cash value at the time of the claim. Say your car is stolen or totaled in a covered claim, your insurer will cut you a check for the actual car’s value, but if you want to replace the vehicle with a new one that costs more than your insurance reimbursement, you would have to pay the balance out of your pocket.
Another key thing about comprehensive car coverage is that they come with deductibles. A deductible is an amount you pay towards a covered claim, and the good thing about it is that you get to choose your deductible. It is recommended that you don’t want a deductible higher than $500.
To paint a full picture of how comprehensive insurance works, here’s an example. If someone drives a Ford fusion that costs $10,000 has a deductible of $500, and the car is destroyed by flood or a tornado. The owner will receive $9,500 from the company. If the owner wishes to upgrade to another vehicle like a Volkswagon Jetta that costs about $20,000, the owner would have to pay the additional $10,000.
Benefits of Comprehensive car insurance
Comprehensive car insurances have several benefits, some of which are highlighted below:
- Comprehensive coverage covers you against total loss. A total loss occurs when your car is completely lost for one reason or another beyond your control.
- It covers you from the theft of car parts. Say you park your car in an unfriendly neighborhood, and by the time you get back, you realize that your wheels or headlamps or side mirrors is damaged, it is possible to claim against such risks with comprehensive coverage.
- Another benefit of comprehensive insurance is called the “courtesy car.” When your car is being repaired for damages, some insurance companies give you a courtesy car.
- You can also upgrade your comprehensive insurance to cover unique events like riots, political violence, or acts of terrorism.
These are the basic things comprehensive car insurance will give you. However, you will be pleased to know that some insurance companies like Best Car Insurance WSA provide additional benefits to ease the financial burden incurred by the car damages.
For any car owner that is still paying off the debt on their cars, comprehensive car insurance is mandated, by law, for you to have.
It shields your vehicle from damages that happen to your car other than being in a collision. It also covers a wide range of events like theft, vandalism due to acts of nature, and so on. It does come with a deductible of your choosing and offers several other benefits.
Thus, if you are looking for comprehensive insurance coverage for your car, check out Best Car Insurance WSA and get the best deal for your insurance policy.