What Is Protected Under The Realm Of Property Damage Insurance?

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.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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