Have you ever reviewed your auto insurance paperwork and found some of the terminology confusing? At QuoteBroker Insurance Services in Santa Clarita, CA, we are here to help you understand your coverages and how they benefit you.
Have you ever purchased a new car at a dealership, and they mentioned that you were required to carry "full coverage" on your car insurance? When you hear those terms, they are referring to comprehensive and collision coverages. Typically, these coverages are needed to satisfy a finance company that will hold the lien on the vehicle you are purchasing. They want assurance that you can get your car fixed and back on the road if you are in any incident or accident. Finance companies and dealerships believe that if a person cannot get a car repaired after a wreck, they are less likely to pay for the vehicle. Therefore, the dealer or financier could lose money on that car.
What is collision coverage?
If you have collision coverage on your auto insurance policy, it will pay for repairs or replace your car, minus a deductible, when you collide with another vehicle or stationary object and are at fault. If you are not at fault, you can likely get compensation to repair or replace your car from the other party’s insurance policy.
What is comprehensive coverage?
Comprehensive coverage on your auto policy compensates you for repairing or replacing your vehicle if you are at fault in any incident "other than a collision," unless otherwise listed in your policy exclusions section. With comprehensive coverage, you can get compensated for cracked windshields, theft, fire, flood, hail, or damage from hitting an animal in the road. You are required to pay your auto insurance deductible first.
Give us a call today!
For more information about your auto insurance policy and how comprehensive and collision coverages benefit you, call us at QuoteBroker Insurance Services in Santa Clarita, CA, today at (661) 702-1755.
