When you purchase insurance, sometimes the basic coverage is not enough and you need a full one. Here is an article by Mike Heuer about this issue.
Full Coverage Auto Insurance Explained
Whenever leasing or buying a new or used auto with a financing plan, the lender will require the buyer to carry full coverage insurance on the vehicle. But many people do not fully understand how full coverage insurance works and often times wind up paying for additional protections that they might not need, such as a rental car rider.
Full coverage insurance essentially is broken down into two components. The first is collision protection, which insures a vehicle against a potential collision with another vehicle or object or a sudden upset of the insured vehicle. A collision with another object might simply involve coming around a turn and striking a fallen tree or other large object that suddenly is blocking the path. And a sudden upset of a vehicle could occur when driving on slippery road surfaces that cause the driver to lose control and run into a ditch, tree or other object.
In such instances, the insurance plan will pay up to policy limits minus any applicable deductible amounts that might apply. Often times, people will carry about a $500 deductible, which can keep the cost of insuring the vehicle lower and make it more affordable to pay monthly premiums. But deductibles also can range from zero dollars to as much as $1,000. Deductibles make monthly premiums more affordable by eliminating small damage claims and potential lawsuits that could cost insurers even more money to handle numerous small claims.
The second component of full coverage car policies is called comprehensive insurance, which protects the vehicle and its contents against possible theft, vandalism or other potential perils other than those covered by collision insurance. If someone breaks into the vehicle and steals its contents as well as the stereo system, the policy will repair damages or repay the owner up to policy limits minus any deductibles. If an expensive cell phone or other items are stolen and add up to more than the deductible, the policyholder can file a claim and get partially reimbursed.
While full coverage plans offer a significant amount of protection, they can run more than necessary when adding coverages that are not needed. Many insurers try to get people to buy additional protection for rental cars, glass repairs and other items that are not needed. Many credit cards provide rental car insurance when using them to rent a vehicle, making such additional protection unnecessary. And most windshields and other types of glass can be replaced for less than $200. But the cost of carrying such additional riders can put more money in insurance company coffers that they do not need.
Full coverage insurance is required for financed vehicles, but the cost need not be too high due to paying for additional protection that is not needed.
Find good deals on full coverage and other auto insurance plans at http://www.generalautoinsurance.com.
Full coverage insurance essentially is broken down into two components. The first is collision protection, which insures a vehicle against a potential collision with another vehicle or object or a sudden upset of the insured vehicle. A collision with another object might simply involve coming around a turn and striking a fallen tree or other large object that suddenly is blocking the path. And a sudden upset of a vehicle could occur when driving on slippery road surfaces that cause the driver to lose control and run into a ditch, tree or other object.
In such instances, the insurance plan will pay up to policy limits minus any applicable deductible amounts that might apply. Often times, people will carry about a $500 deductible, which can keep the cost of insuring the vehicle lower and make it more affordable to pay monthly premiums. But deductibles also can range from zero dollars to as much as $1,000. Deductibles make monthly premiums more affordable by eliminating small damage claims and potential lawsuits that could cost insurers even more money to handle numerous small claims.
The second component of full coverage car policies is called comprehensive insurance, which protects the vehicle and its contents against possible theft, vandalism or other potential perils other than those covered by collision insurance. If someone breaks into the vehicle and steals its contents as well as the stereo system, the policy will repair damages or repay the owner up to policy limits minus any deductibles. If an expensive cell phone or other items are stolen and add up to more than the deductible, the policyholder can file a claim and get partially reimbursed.
While full coverage plans offer a significant amount of protection, they can run more than necessary when adding coverages that are not needed. Many insurers try to get people to buy additional protection for rental cars, glass repairs and other items that are not needed. Many credit cards provide rental car insurance when using them to rent a vehicle, making such additional protection unnecessary. And most windshields and other types of glass can be replaced for less than $200. But the cost of carrying such additional riders can put more money in insurance company coffers that they do not need.
Full coverage insurance is required for financed vehicles, but the cost need not be too high due to paying for additional protection that is not needed.
Find good deals on full coverage and other auto insurance plans at http://www.generalautoinsurance.com.
Source: EzineArticles.com.
Thank you Mike! That's a very useful article.
Nadav
nadavs
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