By Len Casey
All drivers in the United States are required to have at least liability insurance on their vehicles. By adding only a slightly higher amount to the monthly premium, drivers can add comprehensive coverage to the policy and protect their vehicle and finances from unexpected accidents. The word comprehensive implies that it will cover any possibility and this is almost the case. Here are a few things to consider.
Drivers are encouraged to purchase both collision and comprehensive insurance. Collision insurance covers your car in the event of an accident involving traffic. This could be a fender bender, a collision with a tree or another parked car or any other type of “collision.” Comprehensive covers all the other areas of possible damage. This could mean vandalism, meteor strikes, weather related damage such as hail, falling limbs or anything else that damages your car not involving a collision.
Not everyone’s premiums will be the same. A variety of factors are taken into account when the insurer establishes rates. Certain factors depend on the driver such as age, years of driving experience, number of miles they drive, etc. Other factors depend on the car such as its make and model, value, safety rating, etc. Another consideration is the location where you are driving. Drivers in Los Angeles will pay more than those in rural Oklahoma since there are more accidents and stolen vehicles in L.A.
When deciding on comprehensive coverage, you must determine the value of the car. If it is only worth a couple of thousand dollars and you are paying $100 a month for coverage, you might be better off investing that money and saving it in case something happens. If it doesn’t, you still have the money where with insurance if you don’t use it you lose it.
Choosing a higher deductible will greatly reduce the premium. You will have to shell out more in the case of an accident or damage, but it can save you a lot of money if problems don’t occur. It’s recommended that the money you save in lower premiums be put away to cover the deductible in case you need it. If you don’t, you still have the money.
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