Comprehensive Insurance: Are You Fully Covered

Comprehensive coverage includes protection from the consequences of fire and theft, as well as vandalism, lightening, flooding, and other external factors outside of your control.  Comprehensive insurance is effective if you want maximum protection for your vehicle, especially if your vehicle is newer. Likewise, if you obtained a loan to purchase your vehicle, comprehensive insurance is generally required during the term of your loan. However, if you are driving an older vehicle which is paid off, you must weigh the cost of insurance coverage against the expense and inconvenience of paying for damages out of your own pocket in the event your vehicle is damaged.  Purchasing comprehensive insurance coverage is not required, but may be useful for your personal financial circumstances.

Collision Insurance – Collision coverage pays to repair, replace or reimburse you for property damage to your own vehicle.  Arizona law does not require you to purchase collision coverage to protect you in case of an accident.  But if you borrowed money to buy your vehicle or your vehicle is leased, the lender or leasing company will generally require you to have this coverage.  It pays for damage caused by a collision with another motor vehicle or with any other object, movable or fixed, including damages caused if your vehicle overturns. Collision pays for damages to your vehicle, even if an uninsured motorist or an underinsured motorist hits you or if you are responsible for the collision. You may buy collision coverage with a deductible option. Your deductible will be the amount you agree to pay from your own pocket for any damage. You may also buy collision coverage with different deductible amounts for each vehicle covered by your policy. To decide if you should buy collision coverage, consider the value of your vehicle. Also think about how you would pay to repair your vehicle if you do not buy this coverage.

Both comprehensive and collision insurance will generally have a deductible that you will be responsible for in the event you utilize either of these coverages.  Your deductible is the amount that you are responsible for paying out of the total cost of the damages, repairs, etc.  For example, if you have a deductible of $500 and your car sustains $5,000 worth of damage, the insurance company will pay $4,500 towards the repairs to your vehicle and you will be responsible for the remaining $500.

If you would like to affirm that your insurance coverage is appropriate for your family’s needs, contact Pak & Moring for a consultation and evaluation of your automobile insurance coverage.

(Please note: while informative, these posts are not intended to be formal legal advice and should not be solely relied on as a primary basis for legal action.)

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