Car Insurance Comprehensive Coverage

Auto insurance comprehensive coverage premiums are more expensive than liability because this type of policy guarantees to provide the full book price of a car in case of total damage. Liability generally provides coverage for other vehicles damaged in an accident involving the consumers vehicle. It does not cover the owners car damages like car insurance comprehensive coverage does. Individuals are advised to only seek liability rather than comprehensive on cars that are worth less than $5,000. Of course, if someone cannot replace an older car for that amount, they may be wise to add a higher level policy for a premium amount that is affordable.

There are many times when the higher level coverage is much better than liability. In cases of a newly purchased car, auto insurance comprehensive coverage can provide wise financial protection for the driver. Also, if a consumer has taken out a loan to pay for a new car, loan companies require that they carry car insurance comprehensive coverage to protect their investment as well. Unfortunately, these policies do not always cover total losses even though the book value of the vehicle may be covered in case of an accident. The loan may be more than the book value even though a comprehensive policy has been purchased. This can make it difficult to receive the appropriate payback amount.

It is important to check out any carrier's customer services in regards to resolution of claims and other consumer concerns before buying a policy. Not only can there be differences in prices for the same car insurance comprehensive coverage policy among several companies, there also can be varying degrees of good customer service. Comparison is the key ingredient for finding the best auto insurance comprehensive coverage. After the new car is paid off, the consumer will need to make a decision whether or not to continue with this policy or drop to liability.

It is true that the premiums are significantly lower on liability than on comprehensive coverage, but the consumer will have to determine whether or not their financial situation can risk a total replacement of the vehicle if it is totaled in an accident. There are many companies that offer free quotes as well as further information that can help the consumer make a wise decision about whether or not to buy auto insurance comprehensive coverage. "Confidence in an unfaithful man in time of trouble is like a broken tooth, and a foot out of joint." (Proverbs 25:19)