Klamath Insurance Center, Inc Blog
Having car insurance is part of a driver's responsibility, along with the privilege of owning a car. And when it comes to insurance, two options usually get on top of the list: comprehensive and collision. To guide you on making a choice, here is some information and tips on this insurance.
What Does Collision Insurance Cover?
As the name implies, it covers collision-related incidents. Such incidents include your car coming in contact with another moving car or a stationary object. The coverage also includes your car getting hit while parked.
When considering this insurance, note that the actual cash value of your car primarily determines the rate. The actual cash value or ACV is computed by subtracting the depreciation value and deductible from the car's purchase value.
What About Comprehensive Insurance?
Comprehensive insurance provides coverage for damages due to specific circumstances or theft. Among the considered causes of damage are fire, falling objects, hitting animals, certain natural disasters, and vandalism.
It comes with a lower deductible than collision insurance. Through comprehensive insurance, you might not need to pay anything for a broken windshield. However, note that the higher the deductible, the lower your premiums.
Choosing and Saving on Your Coverage
Here are some tips for choosing and saving on your coverage.
Know What You Need
Check first if your state insurance and loan requirements include these coverages. You can also consider if you might be prone to incidents that collision or comprehensive insurance might cover.
Consider Your Car's ACV
If your car value is really low, you might want to consider if having this insurance will be worth it. A car value that is close to the deductible indicates that these coverages might not be necessary. Suppose your car's value is at $1,300 and your deductible is $1,000. In this case, you can save the $1,000 in a savings account and use it when necessary.
When choosing insurance, make sure to check and compare the prices of different providers. Shopping for car insurance when it is almost up for annual renewal is a best practice.
Owning and having the privilege to drive a car comes with certain responsibilities, such as having insurance. Collision and comprehensive insurance can help provide additional coverage for fitting your needs.
At Klamath Insurance Center, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (541) 882-5555 or Click Here to request a free quote.