Do you need comprehensive insurance?
If you do, are you covered enough? Do you know if you need this type of insurance? There are many different kinds of comprehensive policies out there and every company claims that they have the best. So how do you find out if you have the right comprehensive insurance? You need to find an agent who sells Allstate comprehensive coverage.
Most comprehensive insurance policies have two parts - liability coverage and comprehensive coverage. Liability coverage protects you if you get into an accident and the other person is at fault. For instance, if you hit a deer and they are at fault, you could get medical expenses from the deer's owner. This type of policy usually does not cover the damage to your car or the injuries to other people.
If you want to see - What's insurance that is comprehensive? 2021
Comprehensive coverage, on the other hand, pays for damages to the vehicle and the other person's vehicle if you get into a wreck. For instance, if you hit a deer and he ran into a fence, comprehensive insurance will pay for the repair of the fence, as well as for your medical bills. You may be able to get reimbursement for your vehicle if the other person is totaled out. However, if the other person is hurt, you may not be able to get compensated for the repair to his or her car.
Which one is right for you depends on what kind of driver you are. Most people would opt for liability coverage, since it is the lowest premiums in the game. However, comprehensive insurance is usually preferred because it will protect you for any accident you might get into, regardless of who is at fault. Since it also covers the other party, this coverage could also cover the cost of repairing your vehicle if the accident was your fault. It is important, however, that you always read your policy carefully and know exactly what it covers.
Collision coverage, on the other hand, is not the same as comprehensive insurance. When you get into an accident with another vehicle, collision only covers the damages incurred and not the car you were driving. Collisions involving vehicles other than yours are called multi-car accidents and they are subject to different laws and regulations.
What about the damages incurred on the other driver's car?
If you were not responsible for the accident, comprehensive insurance will compensate for the damages on his or her vehicle. However, you must be responsible for your own damages, which means you will have to pay for all of the damage yourself. You are also responsible for paying the deductible, which is the amount you have to pay first, before the insurance company will take over and settle the claim. A deductible is usually the maximum amount you will have to pay if you get into a collision with another driver.
Most states require drivers to have at least PIP insurance, also known as personal injury protection, in order to be able to drive legally. For instance, if you live in New York and are a driver, you have to have this type of coverage in order to drive, even if you are not behind the wheel of a car. PIP is designed to protect you in the event you are involved in a serious car accident, regardless of whose fault the accident is. PIP will also cover your medical expenses if you are hurt in an accident, up to a certain limit.
Some auto insurers offer comprehensive insurance as a package deal. If you purchase comprehensive insurance from one company, such as through your employer, most auto insurers will offer you a discount if you purchase comprehensive insurance from them as well. If you decide to purchase comprehensive insurance as a group, you may be eligible for a group rate reduction. This means that you'll save money on your comprehensive car insurance rates. If you live in one of the states mentioned above and already have comprehensive insurance, ask your auto insurer if they could provide a discount if you purchase comprehensive insurance as part of a group.