Please note: The above is meant as general information to help you understand the different aspects of insurance. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features on this page are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy and/or speak to an insurance representative. Coverages and other features vary between insurers, vary by state, and are not available in all states. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. We are not responsible for the content of any third-party sites linked from this page.
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This discount refers to the manner in which you make your insurance payments and has tiers, typically. For example, if you pay your entire premium up front, you are often given a discount: the highest preferred payment discount. A paid-in-full discount can save you $62 per year on your auto policy. Moreover, if you set up automatic payments from a bank account, you can often receive an Electronic Funds Transfer (EFT) discount.” An EFT discount can lead to savings of about $28 annually. If you are able to pay upfront or through automatic payments, this is a great way to get cheaper car insurance.
For car owners (and leasers), collision insurance is arguably the most important kind of coverage and in many states is required by law. This coverage, however, is limited to physical injuries and damage caused as the result of an accident. Anyone who has parked a car on a city street, in a flood zone or within range of egg-flinging teenagers likely knows that there are many other ways a car can be damaged. That's where comprehensive auto insurance comes in.
2. People who cannot afford to buy a new car If you own your car outright, you may think you can skip comprehensive insurance. A good way to think about it is, if your car were stolen or destroyed in a flash flood or fire, would you be able to afford to replace it? For some people, the answer is yes — they have emergency funds or savings set aside for this reason. For other people, the loss of a car could be an impossible blow. For that second group, comprehensive insurance coverage provides essential protection.
I LOVE USAA! I am surprised it’s not higher on that list. I had Allstate and they never fought for me or my family even though we were paying more than we are paying now. Over where we are at, the speed limit for the highway is 70. There was hardly anyone on the road so my husband drive on the far left since there is a lot of exits in the far right lane. This woman pulled out in the far left lane doing 20. My husband didn’t have time to break because she pulled out right in from God us with no turn signal. But Always was already assuming it was his fault even though they can review the car to see how fast he was going and who was in the wrong. I am glad we dropped them and moved to USAA. They are the best!
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No states require comprehensive coverage, but those who finance or lease their car will probably find that their lender or lessee requires it. Lenders and lessees are the official owners of the vehicle, so they want to make sure they're adequately protected in case of an incident. For the same reasons, you'll rarely be able to buy comprehensive insurance without also purchasing bodily injury liability and collision coverages.
If your car is worth more than $3,000 and/or is less than 10 years old, we'd also suggest both collision and comprehensive coverage, too. Our estimates suggest drivers can buy comprehensive and collision insurance for an average of $600 to $700 per year (however, the cost may be higher for some cars), so you would spend $3,000 to $3,500 in premiums over five years. If your car is currently worth less than $3,000, you will have spent more on insurance than your car is worth. You can obtain the estimated value of your car from sites like Kelley Blue Book and Edmunds. Once you have both the value and a quote for coverage, you can determine whether collision insurance will be worth it.
To calculate the added cost in purchasing comprehensive and/or collision coverage we looked at annual insurance quotes for a 30 year old male from New York across four different insurance companies, and the ten best-selling vehicles in the US. We look at the range of rates you could pay from basic liability to policy plans with comprehensive and collision coverage. Collision typically costs more than comprehensive, although some companies require you to carry both rather than just one. Comparing quotes across at least three companies can get you lower car insurance rates.
Liberty Mutual just dropped my family because of two claims that were made on my daughters car. She had her car at school freshmen year and It was parked and hit on the rear corner closest to the road. It wasn’t her fault and no one came forward to admit to the accident. She no longer has a car at school, and drives rarely when she’s home. The second accident was when she was pulling out of the carport and her front bumper caught a wooden railing when she was backing out. That was her fault, but an accident. Isn’t that why we have insurance????? Before I got this letter from Liberty mutual, I sang their praises. I will loudly have bad things to say from now on. Don’t count on Liberty Mutual
The key difference in collision vs. comprehensive coverage is that, to a certain extent, the element of the car driver's control. As we have stated before, collision insurance will typically cover events within a motorist's control, or when another vehicle collides with your car. Comprehensive coverage generally falls under "acts of God or nature," that are typically out of your control when driving. These can include such events as a spooked deer, a heavy hailstorm, or a carjacking.
Florida, Kentucky, South Carolina mandate the repair by comprehensive insurance coverage without a deductible because they have found that driving with damaged windshields is dangerous, this is an advantage of comprehensive coverage in these states. This being said, most insurance companies will waive the deductible in the case of a glass repair, so it is worth calling your agent or representative to know your conditions.
Being in the business for a very long time, I have found that most people are clueless about insurance, even most agents who sell them. I will agree that their rates are cheap. But I wouldn’t recommend them. Inexperienced adjusters. They do not fully investigate. The policy does not cover like, kind, and quality which is bad if you have a new vehicle.
Liability insurance: bodily injury liability (BIL) and property damage liability (PDL) — Liability insurance pays for the expenses of people you hurt while driving your car. Bodily injury liability (BIL) pays for other people’s medical expenses; property damage liability (PDL) pays to repair damage or replace their vehicle. Required (in states that require insurance).
Comprehensive car insurance coverage includes a deductible (the amount you will have to pay out of pocket). An example of how comprehensive car insurance works would be if a deer ran across the road, into the side of your car and caused $4,000 in damage. First, you would file an auto insurance claim or a request for the insurance company to pay for your losses. If you have car insurance with The Hartford, you can file a claim here. Next, your car would be repaired. If you have a $1,000 deductible, you pay the first $1,000 of repair costs and The Hartford covers the remaining $3,000.
Collision and comprehensive insurance are two optional types of auto insurance where your insurer pays for repairs to your vehicle. While there are other optional auto insurance coverages, liability, comprehensive, and collision are three of the most common. These coverages work hand-in-hand to repair or replace most of the damages to your car. It's important to know the difference, and make sure you're adequately covered.