4 Important Things about Comprehensive Physical Damage Coverage to Consider
When you buy car insurance, you have the option of adding comprehensive physical damage coverage. This component, which you are not legally required to purchase, covers your vehicle for all types of damage other than those resulting from collision. It is worth taking a closer look at it to ensure that you will get appropriate protection and still buy cheap auto insurance.
As the name of this type of cover suggests, it is pretty comprehensive. With it, your car will be insured for natural disasters, fire, theft and vandalism, falling objects, impact with animals and even terrorism. There may be some differences between policies so you should check exactly what is included when comparing auto insurance quotes. Additionally, you must read the terms and conditions of the coverage before making a purchase to ensure that there are no hidden loopholes, especially when it comes to damage caused by natural disasters.
Actual Cash Value
The actual cash value is the maximum possible compensation amount which you will receive in case you make a claim on your comprehensive physical damage coverage. This is the value of your vehicle before the accident which you are making the claim for has occurred. Keep in mind that the deductible which you have agreed on will be subtracted from the compensation amount. Given all this, it makes sense to use an estimate of your vehicle’s actual cash value to determine whether such coverage will be beneficial to you and how much to buy. If you are buying a new car or your existing one is very expensive, you should definitely add this component to your auto insurance policy even if it makes it a bit costlier than the basic one with liability insurance only.
There are several factors which affect the premium on the comprehensive physical damage coverage. These include your driving record in addition to the value of your vehicle. Other factors that usually play a role include the area where you live and your age. Since you don’t have control over those at the time of purchasing a policy, your best bet to get the cheapest auto insurance given your needs is to shop around and do some research to find out what discounts you may be eligible for.
The deductible is practically the portion of the bill which you have to pay yourself when you claim benefits on your policy. Usually, it is a fixed amount of money rather than a percentage. Another crucial thing to keep in mind if you want to buy cheap car insurance is that the deductible is typically per accident/claim. This means that you will have to pay this amount of money out of your pocket every time regardless of the cost of the repair of your vehicle. For these reasons, you should be extra careful if you decide to lower the premium on your policy by raising the deductible. Make sure that it is completely affordable to you given your monthly income and savings and your spending.
Take your time when determining the amount of comprehensive physical coverage which you will buy and adjusting the premium and deductible to ensure that you will get protection and cheap insurance at the same time.