There are two main types of protection provided by property damage coverage, with a deductible included. The two types are:
1. Collision coverage pays for physical damage to your car as the result of your auto colliding
with an object, such as a tree or another car. This is relatively expensive coverage.
Remember, this coverage is optional and not required by law. However, your lending institution
or lessor may require collision insurance.
If you have an older vehicle worth less than $2,000, there is little reason for you to purchase
collision coverage, because you are likely to pay more money in premium than you would ever
receive as a result of a claim. Auto insurance policies only require the company to cover your
financial expenses, not to replace your vehicle. In the case of an accident involving an older
car, the cost of repairing the car can quickly exceed the worth of the car. In that case insurers
will "total" the car and pay you what the car was worth rather than fixing the car.
2. Comprehensive coverage pays for damage to your auto from almost all other causes, which
includes fire, severe weather, vandalism, floods and theft. Comprehensive coverage will also
cover broken glass, such as windshield damage. Comprehensive coverage is less expensive
than collision coverage and many consumers choose to carry it. However, remember it is your
choice; you are not required by law to carry comprehensive coverage.
Speak to an Experienced Insurance Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified insurance lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local insurance attorney to discuss your specific legal situation.