If you have ever wondered how does comprehensive insurance on your car work, this article will provide some answers. To start with, you need to understand that there are four components to comprehensive insurance: the limit, deductible, coverage and claims.
The insurance policy’s limit is the first thing you’ll want to investigate. There are two components to this. First, how much would it cost to repair or replace your car if there was an accident? You will want your coverage to cover this at a minimum. Secondly, there are the medical costs if someone else were to get hurt in an accident. Anything over the limit comes out of your pocket.
The next factor is the deductible. This is the amount that you pay before the insurance pays anything. For instance, if you have a $1500 repair and a $1000 deductible, then the insurance company is only responsible for $500. Most people have policies with $500 or $1000 deductibles but people who have high insurance rates often raise their deductible amount in order to lower their monthly premiums.
The third item is coverage. What happens to your car when you are not in it? If someone vandalizes it or if a hail storm damages it, some insurance policies will pay to get it repaired. This kind of coverage does not cover accidents, but does cover any damage when you are not 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