Tag: comprehensive

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How Much Car Insurance is Enough: Collision and Comprehensive Coverage

In Parts 1 and 2, we talked about deductible and liability coverage.  There are two other coverages that you should consider.

Collision & Comprensive Vehicle Insurance

You may remember that liability car insurance covers the medical and property damages to others. Collision Car Insurance covers your vehicle such as if you hit an object like a fence or pole.  It also covers damage to your car if someone else hits you, and they do not have liability insurance. Collision car insurance also covers your vehicle if you are at fault.

Comprehensive covers other damages.  If your vehicle is stolen and not recovered, that is covered under comprehensive.  It also covers damages from weather (tornado, hail, etc.), floods, fire, falling objects, explosions, crashes with an animal (such as a deer) and even riots and civil disturbances.

Do I need Collision or Comprehensive vehicle coverage?

This decision is really up to you.  Our experience has been that most people drop collision or comprehensive (or both) when their car’s value drops below $2,000-$3,000.  It is simply a matter of value.  Add the premium to the deductible if you should have an accident.  If the total is greater than the value of the vehicle, some people choose not to get collision and/or comprehensive coverage.

There are some situations where we recommend getting collision and comprehensive coverage.  These include:

  • If you take out a loan to buy your car, the lender may require these coverages.
  • If you lease your car, the leasing car may require these coverages.
  • If you cannot afford to replace or repair your car if you crashed or it was stolen.
  • If your area has a high incidence of car theft, vandalism or the other situations described above.

I’m just not sure about all these coverages. What do I do?

This question is why we are here for you.  Click here to contact us or give us a call at 865-922-3111 or 800-624-3339.   We can provide the information to help you make the best decision for the right coverage at the right price.  In addition, because we are an independent agency, we can show you quotes from many different insurance companies so that you can choose the right one for you.

How Much Insurance Do You Need?

Low vs. High Deductible
Liability Insurance
Collision and Comprehensive Coverage

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Auto Insurance Made Easy

Be prepared with the right coverage before you need it.

Understanding insurance can often be like trying to learn a foreign language. Many find it confusing and intimidating.

Fortunately, there’s help. Here is a quick reference designed to help you understand some of the most common kinds of coverages. The reference was put together by The Progressive Group of Insurance Companies.

Liability

Liability covers bodily injury and property damage (BI/PD). This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, liability insurance is mandatory.

Under BI/PD, your insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If your policy covers you in the event you’re sued after an accident, your insurance company will pay for a lawyer to defend you.

Liability limits generally appear as three numbers, for example, 25/50/25 or 100/300/100.

  • The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person.
  • The second number is the maximum that would be paid out for bodily injury per claim.
  • The third number represents the maximum amount your insurance company is obligated to pay for property damage you cause.

Collision

When you buy collision coverage, your insurance company pays for damages if your vehicle collides with another vehicle or object. Collision coverage involves a deductible amount you select when you purchase your policy. This amount is what you are required to pay before your insurance company starts picking up the tab. Remember, the deductible amount is the amount you need to pay in the event of a claim.

Comprehensive

Comprehensive covers damage caused by events other than a car collision such as fire, theft, vandalism, hail or flood. It also covers damage caused by your vehicle colliding with an animal. And if your car is stolen, it will cover the cost of a rental, subject to a daily limit. Like collision coverage, a deductible usually applies.

Medical Coverage

Depending on the state in which you live, you may have available to you Medical Payments coverage or Personal Injury Protection (PIP) coverage. While these both work differently, they provide coverage for medical care provided to you as a result of a car accident.