Collision and Comprehensive Coverage

Written by Jay Steele

Automobile insurance can be tricky but a little knowledge can go a long way in understanding of some basic terms. Learn about the Comprehensive coverage and Collision coverage here as well as what are the ground factors of the car insurance rates.


Collision and Comprehensive Coverage

The Collision and Comprehensive portion of your policy provide the protection to your vehicles. Collision coverage applies when  an accident occurs, involving yours and another car or an object such as a pillar, a building, a fence or in case your vehicle overturns. Whereas Comprehensive coverage applies in losses Collosion Coverage and Comprehensive Coverageaffected by fire, steal, vandalism, broken glass, an animal, flood or other damage etc. These coverages have a deductible which is the amount that you must pay preparatory to the coverage of these expenses by your insurance company.
A common value of collision deductibles are 500 dollars or 1.000 dollars and common comprehensive deductibles are 100 or 250 dollars. In case your automobile is in lease or financed, then you're required by the bank or financer to carry comprehensive and collision coverages until the end of the loan. But please keep in mind, that an insurance company will not pay more for fixing of your car than the residual value of your vehicle actually is.   
There're two more coverages - Rental car reimbursement and Towing & emergency road service coverage that provided by most of insurance companies. Notwithstanding the optionality of these coverages, they are still recommended as a part of a full package. 

Main Factors Car Insurance Rates Based on

Car insurance rates are based on many factors and include such as:
  • where you live  
  • your age  
  • how often you drive 
  • what you drive   
  • the coverage you carry 
As the car gets older and is not financed, people often prefer to drop comprehensive and collision coverages completely in order to save money. One of the options to lower your insurance costs is to take high comprehensive and collision deductibles.  Additionally, many people choose to pay for small claims out of their own pockets as a way to keep their weight down. However, your coverage is just the one of the many factors which affect the cost of your insurance. 
There's something you can do to make sure you'll get the best price on market. Small accidents and violations remain on the record for t3 years and major violations stay on for 5 years.That's why it is very important to keep your driving record clean because it's used as a forecaster of future experience. 
Nowadays many companies use a so-called "scoring model" that combines driving record and a variety of other data including some elements of your credit history and previous insurance claims to calculate cost of your policy. This means that paying invoices timely can affect your insurance rate as can the amount of claims you file on your policy.