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Getting What you Paid for in Collision and Comprehensive Auto Insurance


Collision coverage takes care of the damages caused by an insured vehicle as well as the damages made to other cars or objects affected by an accident. Contrary to what people may think, liability coverage limits are not that complicated. It can be easily understood as most insurers describe liability limits in concise ways:

•    It is the highest amount an insurance provider is willing to pay per person for all medical damages he received from an auto accident caused by a negligent party.

•    It represents the total reimbursable amount a provider will cover per accident.

•    This policy takes care of expenses resulting from damages done to property.

When it comes to the highest amount a provider spends for a claim on collision coverage, most insurance companies reimburse by getting the cash value of the insured vehicle less the deductibles set by the driver. This means that in the event of a collision, the driver is protected depending on his car value and how much his deductibles are.

On the other hand, comprehensive auto policies give protection to an insured vehicle for damages that are caused by collisions, road accidents, theft, and those caused by natural disasters. Most insurance providers who sell a collision policy include stipulations which mention that this policy only covers damages that are caused by collisions. What about if the car gets stolen? This is where comprehensive car insurance comes in.

By using the brief explanation about what collision policies and comprehensive policies does for a motorist, it is now easier to understand collision and comprehensive auto insurance. In a way, collision coverage complements comprehensive coverage. Because of this, some companies require that before someone can purchase collision coverage policies for a vehicle, comprehensive coverage must first be purchased.

In reality, all car insurance policies contain a certain amount of limitation, even ones companies call “full coverage.” A full coverage policy, also known as collision and comprehensive auto insurance, may not be for everyone, as each driver has his own unique needs.

For example, collision and comprehensive auto insurance may not be for motorists who are not that prone to accidents and only want protection against collisions. This is why before buying collision and comprehensive auto insurance, you need to make sure that you understand the policy coverage that you are paying for.  It would be a shame to spend money paying for premiums when you do not necessarily need coverage protection. Likewise, it would be unsafe to get minimal coverage and end up underinsured.