Comprehensive Car Insurance
Comprehensive auto insurance will provide protection against damage to a vehicle, when the damage results from events other than an accident that occurs while the policyholder is driving. Aside from collision, these policies will cover damage to the policyholder's car resulting from fire, explosions, earthquakes, hail, tornadoes, floods, riots, vandalism, and theft. However, this coverage usually does not pay for the entire loss, and there is usually a deductible that must be paid by the policyholder before the comprehensive car insurance release funds.
If the coverage has a deductible of two hundred and fifty dollars and the amount of damage or loss is two thousand dollars, the policy holder would pay the two hundred and fifty dollars and the insurer would pay the remaining one thousand seven hundred and fifty. Depreciation can also affect the amount that the comprehensive car insurance will pay. The value of a vehicle decreases as it ages and the amount a policyholder will collect decreases as the vehicle ages. The comprehensive car insurance policy will reimburse the policyholder for the actual cash value of the vehicle at the time of loss rather than the amount that the policyholder paid for the car initially.
When considering a policy on an older car, it might not be a wise financial decision to take out this type of coverage. It is important to know the book value of the vehicle, the cost of coverage, the deductible for each occurrence, and the amount the comprehensive auto insurance policy will pay if the vehicle were to be totaled after the deductible is met. If the cost of comprehensive car insurance is more economical than the cost of replacing or repairing the car at the owner's expense, it would be wise to take out a policy on the vehicle.
This coverage is definitely worth the money for those who have a newer vehicle that would cost a tremendous amount of money to repair or replace. While the likelihood of a disaster striking and wiping out the vehicle may be small, it can and does happen to people every day. Even small occurrences like falling trees or a storm with hail can do significant damage to the vehicle. It pays to be prepared and have the peace of mind that if something like this does happen, the comprehensive auto insurance will cover it with very little money out of pocket. When all else fails, though, car owners should look to the Lord. "God is our refuge and strength, a very present help in trouble" (Psalm 46:1).
Auto insurance comprehensive coverage premiums are more expensive than liability because this type of policy guarantees to provide the full book price of a car in case of total damage. Liability generally provides coverage for other vehicles damaged in an accident involving the consumers vehicle. It does not cover the owners car damages like car insurance comprehensive coverage does. Individuals are advised to only seek liability rather than comprehensive on cars that are worth less than $5,000. Of course, if someone cannot replace an older car for that amount, they may be wise to add a higher level policy for a premium amount that is affordable.
There are many times when the higher level coverage is much better than liability. In cases of a newly purchased car, auto insurance comprehensive coverage can provide wise financial protection for the driver. Also, if a consumer has taken out a loan to pay for a new car, loan companies require that they carry car insurance comprehensive coverage to protect their investment as well. Unfortunately, these policies do not always cover total losses even though the book value of the vehicle may be covered in case of an accident. The loan may be more than the book value even though a comprehensive policy has been purchased. This can make it difficult to receive the appropriate payback amount.
It is important to check out any carrier's customer services in regards to resolution of claims and other consumer concerns before buying a policy. Not only can there be differences in prices for the same car insurance comprehensive coverage policy among several companies, there also can be varying degrees of good customer service. Comparison is the key ingredient for finding the best auto insurance comprehensive coverage. After the new car is paid off, the consumer will need to make a decision whether or not to continue with this policy or drop to liability.
It is true that the premiums are significantly lower on liability than on comprehensive coverage, but the consumer will have to determine whether or not their financial situation can risk a total replacement of the vehicle if it is totaled in an accident. There are many companies that offer free quotes as well as further information that can help the consumer make a wise decision about whether or not to buy auto insurance comprehensive coverage. "Confidence in an unfaithful man in time of trouble is like a broken tooth, and a foot out of joint." (Proverbs 25:19)
No Fault Auto InsuranceNo fault auto insurance provides coverage for vehicular and personal damages of the insured in case of an accident no matter who is to blame for the accident. Only thirteen states as the present time have no fault car insurance protection for its state's citizens. These states operate under a modified standard that offers coverage up to a specified limit for those involved in an accident. If the specified limit is exceeded in damages, the policyholder can sue for further compensation. There are no states in the US that operate under an absolute standard, but these thirteen states offer the closest thing to it.
Most policies have some form of specific stipulations within their coverage such as payment for medical bills or compensation for workdays lost that doesn't depend on who is to blame. There are different amounts of coverage in policies such as liability that covers only the other driver. Full coverage covers both the policyholder and the other vehicle according to the policy stipulations. These types of coverage may include some elements of no fault auto insurance but do not automatically cover the policyholder without basing some coverage on who is found at fault. Many times the attending police officer at an accident scene is the one who determines who benefits from any no fault car insurance clause within the typical car coverage. Honesty is very important when reporting an accident. Not only will it help in the long run of figuring out who should pay for cost, but God commands all people to live as honestly as possible.
Modified versions of policies that are found within the particular states that offer it, allow for compensation up to a limited amount with no prohibition on suing for further damages. No fault car insurance would not allow for suing for further damages from either party in a vehicular accident. The benefits are useful in that the liability for damages based on personal fault in any accident doesn't get placed on anyone. On the other hand, in case of catastrophic damages, neither are they allowed to sue for compensation. There is protection from many angles from no fault auto insurance for any policyholder as well as some negatives.
Currently not one state uses this practice in entirety, although most policies continue to offer some features. If a person is located within the thirteen states that do offer a more streamlined version of no fault car insurance, that person has benefits from the safety from lawsuits and loss of property compensation based on whose fault regarding an accident. Many car insurance companies offer many benefits within various insurance plans. Check with several sources to determine the best car insurance featuring the most options.
Non-owner car insurance is for people who seek insurance protection, but do not own their own vehicle. With non-owner auto insurance, people can have coverage for medical bills if they are injured in an accident while driving someone else's vehicle. This is helpful to have if a driver is not on someone else's policy or would prefer to possess a policy in their name. There are instances when this kind of policy is a good investment. Take all other options into consideration before choosing to purchase this kind of coverage.
In some cases, this type of policy is an excellent choice for those whom drive cars other than their own. If a driver frequently drives a company car for his job, he may want to purchase non-owner car insurance. Your employer probably already has the employee on a policy, but the driver may want to consider purchasing some added protection. A person may want to get this kind of coverage if he borrows his friends' and family members' cars on a regular basis. This will give him and them peace of mind. Finally, if a person rents vehicles frequently, he may want to consider taking out this kind of policy. It can become extremely expensive to buy liability coverage from car rental services.
Non-owner car insurance isn't as common as other forms of auto insurance, but it does exist. Not every auto insurer must sell it so a driver may have to dig a little deeper to find it. The Internet is a great source for non-owner auto insurance. Simply search through a search engine. A driver may want to ask friends and family if they know of insurers who offer this kind of coverage. With their recommendations, he can visit these insurers' websites. One can usually request quotes for this kind of policy at these websites. It's important to look for the policy that offers the right premium and deductible for the buyer.
In a few cases, non-owner auto insurance isn't very beneficial. It's important to remember that non-owner car insurance takes over after the car owner's liability coverage has been used. For this reason, parents shouldn't get this type of policy for their teen to save money in place of adding them to their existing policy. Typically this will not save them much money.
When choosing to obtain non-owner auto insurance, it is important to remember one's responsibilities as a driver. Friends and family do not have to be left to bear the burden of paying for damages or medical care if there is an accident with their vehicle. "For every man shall bear his own burden" (Galatians 6:5). One must consider carefully, and pray about this kind of coverage before making the decision.