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Comprehensive and Collision Coverage 

Comprehensive and collision coverage together are sometimes referred to as full coverage. While each is similar in its purpose, each one has a different function. Collision insurance provides coverage in the form of payments if your car strikes or is hit by another motorist. Minus your deductible, collision insurance will pay the remainder of the balance owed from the accident. However, the monetary amount it will provide towards repairing your car will not exceed the market value of your vehicle. Thus collision insurance may not be ideal for older cars since older vehicles typically depreciate quite heavily over time. You will end up paying more total for your monthly premiums than what the car is actually worth. If you are leasing an older vehicle, it may be logical to maintain only the minimum amount of collision insurance that you are required to carry.

In order to guarantee you lower rates on your premiums, you should select the highest amount for your deductible that you can afford. The higher the deductible, the lower the amount of money you will have to pay on a monthly basis. That said, you will obviously have to front more funds if an accident does occur, so be certain that you allot for a deductible ahead of time. That way when an accident occurs, you won't be shell shocked as to how you are going to pay for the damages that came about.

It would behoove you to make certain that you are familiar with the terms and conditions of your insurance policy. While it is not typically required by law for vehicles as a whole, this form of coverage may be necessary to extend to a vehicle that has an outstanding loan on it. Lenders want to make sure that their property is protected as long as they are still the technical owners. Thus they require that you carry collision insurance to pay for damages in an accident. They will request proof of insurance after you receive the loan, so don't think that you can get the car and fail to get the coverage. They follow up on this frequently too as a way to make sure you have not dropped the coverage over time.

Comprehensive insurance will cover your vehicle or other cars you may be driving (in limited situations) for any damages you may incur from a collision, an act of nature or a criminal act. If your vehicle is stolen or vandalized or if it is damaged due to a flood, fire, or by striking another animal, you will be covered. Similarly with collision insurance, the coverage will provide for the remainder of the balance on your repairs minus your deductible. Again, selecting a higher deductible will result in more affordable rates. You should also familiarize yourself with the terms and conditions of your coverage. It is not required by law, and is a completely voluntary form of coverage. However, the protection it affords can be highly beneficial to you.  

 

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