Comprehensive Car Insurance

Comprehensive Car Insurance

Comprehensive car insurance is universally considered the best auto insurance coverage that auto insurance companies offer. It usually provides the most extensive coverage for drivers, hence the name “comprehensive.” Although not all people need a comprehensive cover, more people are starting to realize that it is better to be safe and insured as a driver than to be underinsured, or even worse, uninsured in the event of an accident. If you are interested in learning more about comprehensive auto insurance policies, read below for a detailed description.

What Is Comprehensive Car Insurance?

If you buy a comprehensive policy, you will get above average insurance protection compared to standardized policies. Although companies differ in the amount of coverage that they provide under comprehensive policies, most are structured the same. Below includes some of the extensive coverage that you should expect to receive with fully comprehensive car insurance.

Damage to your car – Any damages, other than those caused by a collision, that are caused to your vehicle will be covered under a comprehensive policy; no matter what causes the damage. Since you are buying comprehensive insurance, your insurer will generally reimburse you for the full amount of damage to your vehicle.

Damage to other cars – If you inflict damage upon the vehicle of a third party (e.g. another driver), your comprehensive insurance policy will often take care of the costs. In other words, you won’t have to worry about paying out of your own pocket for damages that you cause. It is nice to know that your insurer will provide support and pay for third party claims; even if you are “at fault” in an accident.

Stolen vehicles – Not all types of auto insurance would reimburse you if your car is stolen. If you want to make sure that your insurance policy will cover your car if it’s stolen, then you will want to purchase a comprehensive car insurance cover.

Acts of God – If you want to be covered for “Acts of God” on your insurance policy, then getting comprehensive car insurance is the type of coverage that you need. Most insurance companies differ in their definitions of “Acts of God,” but in general, most agree that the definition is “natural occurrences beyond human influence or control.” This would account for damage caused by weather (e.g. tornadoes, earthquakes, mud slides, etc.). Any natural event that is not caused by humans is considered an Act of God.

Weather damage – Weather damage such as that caused by: hail storms, tornadoes, hurricanes, floods, and more will all be covered under a comprehensive car insurance policy. If you want to have your vehicle insured for any potential weather damage, this is the type of cover that you should get.

Animal damage – If a deer hits your car or a grizzly bear decides to smash through your windshield to look for some food, you will be insured for damages that are caused. A lot of people have had damage caused to their vehicle by animals. Repairing the damages caused by animals can be very costly, but if you have comprehensive auto insurance, you will get the damage fees picked up directly by your insurer.

Fire damage – If for some reason there is damage to your vehicle as caused by a fire, comprehensive insurance policies will reimburse you for the damages. If your car is unrecoverable after burning in a fire, most insurance companies will reimburse you for the blue-book value of the vehicle under a comprehensive car insurance policy.

Vandalism – It’s nice to have vandalism damage protection that is provided under comprehensive auto insurance policies. Whether your vehicle gets spray-painted, your windshield gets smashed, or your tires get slashed – it is comforting to know that you will have protection against vandalism damages.

Incidents besides collisions – Comprehensive car insurance does not provide insurance for collision damages (such as bodily injuries). However, it does provide other coverage for your vehicle that you may need. Other scenarios where having comprehensive coverage would be beneficial include: if something out of your car is stolen or if parts of your vehicle are stolen. Nearly every incident besides a collision is going to be covered under this type of policy.

Benefits of Comprehensive Car Insurance Policies

Even though comprehensive insurance policies do not provide coverage for everything, they are clearly the best to have for your vehicle(s) if you need thorough protection. The cost of premiums for comprehensive insurance are among the highest because you are getting the most coverage as a motorist. With that said, having the extra insurance can be very beneficial if you find yourself in an accident or without coverage for certain things like animal damage or stolen parts. If you don’t have comprehensive insurance – you may end up paying a lot more money for damages than it would have cost you on premiums for this type of policy in the first place.

If you take out a comprehensive policy, you will still be able to save money on your premiums through discounts. No matter which company you go to, you will be able to save with a “No Claims Bonus” as well as by taking a higher deductible. Comprehensive policies are recommended for people that need extra protection for their vehicle compared to what comes standard with an insurance policy.

Comprehensive Car Insurance Comparison

Before you purchase comprehensive auto insurance, it is important to conduct your own comparison. Most companies offer different rates as well as different sets of savings opportunities (e.g. discounts) and additional perks associated with their policies. For example, some companies may provide customers that purchase comprehensive policies with: free damage repairs, free courtesy cars (should they need one), and free 24 hour roadside assistance.

Not all companies have great perks – so take time to research these and be a wise consumer. Most people have trouble making accurate comparisons – so be sure to read company reviews before you commit to a policy. There are many great insurance companies that provide comprehensive policies to choose from, but it is up to you to choose a company that works best for your vehicle and finances.

Comprehensive Car Insurance Quotes

If you are interested in getting comprehensive auto insurance coverage, it is important to get a comprehensive car insurance quote. You can get a free comprehensive car insurance quote comparison by entering your Zip Code into the form on top of this website. The form above will provide you with great deals from car insurance companies that provide local listings in your area. All that you need to do is figure out which company looks like they have the best deals!

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What Should I Know About A Car Insurance Loss Payee?

If someone has financial rights to your vehicle because you haven’t fully paid off your loan, that person is known as a car insurance loss payee. Generally, the loss payee is a lender that is federally licensed to provide individuals with auto loans. Legally, anytime you take out a loan for your vehicle, the party that is providing the money will be required to have contractual proof for the agreement. When the agreement is in place, usually a set amount of interest is agreed upon so that the lender can make money from the loan that you have taken out.

What happens if my car is totaled and I still owe my loss payee money?

If you still owe your lender money, but your vehicle is totaled, hopefully you were smart enough to follow the guidelines and purchase adequate insurance. If you did not purchase enough insurance, you may have to pay for all damages out of your own pocket, which can get ugly. The first thing you should always do whenever purchasing a new vehicle and dealing with a lender is to make sure you have enough insurance coverage.

Individuals that did not purchase what’s known as “gap insurance” are going to have to pay the difference (between the value of the vehicle and the unpaid loan balance) out-of-pocket if their car is totaled. For this reason, it is always recommended that you get an insurance policy that will have your back should you be unlucky enough to ever have your vehicle totaled in an accident.

Will my insurance company pay me or my loss payee?

It is important to know who is going to be the primary recipient of money from your insurance company following an accident. In many cases, the loss payee (also commonly known as the “car insurance lien holder”) will be the one who directly receives the money from your insurer. It all depends on the type of contract that you entered though, sometimes you may be the primary recipient of the money if you and your lender have a different agreement.

For a hypothetical example, let’s say that you owned a vehicle valued at $16,000 that was unpaid. If it is brand new, it still likely is close to full value at $16,000 – so if it is damaged and you have enough insurance, you will be fully reimbursed for the $16,000 (you will likely need gap, comprehensive, and collision coverage). Anyways, if you totaled your $16,000 vehicle and your loss payee is the one receiving the insurance reimbursement, they will be given the money and you will be credited for what you have been given.

If you still owed $4,000 on your vehicle – the loss payee would initially pay off the remaining $12,000 on your account before they send you the $4,000. So you may have to wait extra time for the check to go through and be issued and processed in your bank account.

Should I add my lease company as a loss payee?

If you are leasing a vehicle, you may not be given a choice as to whether you should list the company providing you with the lease as a “loss payee.” Sometimes you may be required by your lease company to list them as a loss payee because you are not yet the rightful owner of the vehicle. The reason that they may contractually demand to be listed as the payee in the event of a loss is because they want to make sure they get all of the facts straight and collect what they deserve from the insurance company before you get your fair share of the money. Technically speaking, insurance can get quite complicated because the lease company can actually be dragged into certain claims and settlements. For this reason, most will require that you list them on your policy.

Isn’t it up to me to decide whether I include my loan lender as a loss payee?

Most of the time it is NOT up to you to make a decision regarding the loss payee. Why isn’t it up to you? The reason that it isn’t up to you is because you don’t have enough money to pay off your vehicle. Since you are the person receiving money to help make payments, the company that is lending you the money deserves to get paid before you do.

Hopefully all of this makes sense to you because it really isn’t too complicated. All it involves is your lender collecting money from your insurance company to make sure they get their fair share, and then they pay you what you deserve from the remaining balance.

If you would like free quotes and to find out more about the loss payee on your car insurance policy, be sure to enter your zip code and check out the reliable providers in your area.

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