How Does Comprehensive Insurance on Your Car Work?

 Do you wonder how does comprehensive insurance on your car work? There are four parts to comprehensive insurance. These are the insurance limit, the deductible, the coverage and the claims. They all work in tandum to determine the cost and your satisfaction with your policy.

The insurance policy's limit is the first thing you'll want to investigate. There are two components to this. First, how much would it cost to repair or replace your car if there was an accident? You will want your coverage to cover this at a minimum. Secondly, there are the medical costs if someone else were to get hurt in an accident. Anything over the limit comes out of your pocket.

The next factor is the deductible. This is the amount that you pay before the insurance pays anything. For instance, if you have a $1500 repair and a $1000 deductible, then the insurance company is only responsible for $500. Most people have policies with $500 or $1000 deductibles but people who have high insurance rates often raise their deductible amount in order to lower their monthly premiums.

The third item is coverage. What happens to your car when you are not in it? If someone vandalizes it or if a hail storm damages it, some insurance policies will pay to get it repaired. This kind of coverage does not cover accidents, but does cover any damage when you are not in the car.

Finally, you need to think about claims. Some insurance companies have better customer service than others. Some are known for prompt payment while others delay and delay. Some are known for being fair with their pay outs while others are skimpy. Also, at least one insurance company has been flagged for sending their customers to unlicensed repair shops.

Beyond basic liability coverage required in most states as a matter of law, comprehensive coverage protects your assets better. Hopefully you found out how does comprehensive insurance on your car work in this article.