Auto Insurance - Optional Coverage
The two components that are most common in this area are Collision and Comprehensive coverage. There are also a number of other endorsements that are explained below. Collision
This component of automobile insurance covers you for the cost of damage to your car in the event that you are "at-fault." This type of coverage will typically pay for the cost of repairs up to the fair-market-value of your car. You should keep in mind that this may not be the price you paid or may not cover the full amount of your loan. This type of coverage has an amount and a deductible. If you need to make a claim, then you pay the deductible and the insurance company covers the rest. As you would expect, the higher your deductible, the cheaper your coverage will be.
Comprehensive
This is very similar to collision coverage but comes into play when external factors led to damage. For example, if someone vandalized your car or a hailstorm damaged the paint, then comprehensive coverage would come into effect. As in the case of collision damage, you can select a deductible and an amount of coverage. This component of car insurance is typically required when you finance your vehicle.
Additional Endorsements
These are car insurance policy extras that are not required anywhere but are typically selected for their convenience factor. They include items like:
- Auto Towing
- Auto Glass
- Daily Rental (covers the cost of a rental if your car is in the shop)
- Emergency Roadside
More Auto Insurance Information: