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Comprehensive coverage in an auto insurance policy is also referred to as OTC(other than collision) coverage. The name of this coverage policy makes its definition more clear because it covers almost all other physical damage that can occur to a vehicle other than collision. This coverage is the most superior kind of protection you can provide your car with. Collision refers to the damage suffered by the vehicle when the vehicle is in motion. This damage may be caused by an object or other vehicle in a road accident. It does not matter who is at fault in the accident that damages the insured v
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What is a COMPREHENSIVE DEDUCTION under Coverages and Limits in Auto Insurance? WWW.WINSURTECH.COM
Introduction Comprehensive coverage in an motor insurance policy is also referred to as OTC(other than collision) coverage. It protect almost all other physical damage that can occur to a vehicle other than collision. This coverage is the most upper kind of protection you can provide your car with. Collision means the damage suffered by the vehicle when the vehicle is in motion. This damage may be happen by an object or other vehicle in a road accident. It ignore the fact that who is at fault in the accident that damages the insured vehicle; the owner of the insured vehicle can make a claim under collision coverage.
Comprehensive coverage deductibles mean? A car insurance deductible is an amount that you have to pay for repairs or other damages before your insurance policy kicks in. The comprehensive deductible is a bit different from the collision deductible. In nearly any comprehensive coverage claim, the insured is responsible for the deductible. A comprehensive claim is normally filed for loss from vandalism, theft, fire, or any other source that is not a collision. All drivers sometimes feel that they should not pay a deductible in a situation where they were not in any way responsible for the damage to the car, as is often the case in comprehensive claims. The use of the deductible system is one of the methods by which car insurance companies keep the rates of insurance premiums lower for everyone.
How to choose your comprehensive coverage deductible? It is mandatory to consider when choosing a comprehensive coverage deductible is that an individual must think about how much he/she has to prepare to pay if the claim is required after an incident. It means an insured has to find the right balance between what fits the budget for insurance and what he/she can reasonably expect to be able to pay in the case of a comprehensive claim. It should always be keep in mind that if you choose a higher deductible in the account for lower premiums and don’t have a claim for many years, the money you saved over that years can put you ahead of the game.
Comprehensive insurance coverage limits Comprehensive coverage is same to most insurance policies, subject to limits. The coverage limit is the maximum amount that an insurance policy pays for a covered claim. The limit on comprehensive coverage is normally the actual cash value of the vehicle(original value of the vehicle minus depreciation). Let’s take an example: Suppose, your car is stolen. Your motor insurance company would reimburse you for your car’s depreciated value, minus the deductible that you selected at the time of purchasing the insurance policy. It means, if you want to replace your stolen vehicle with a newer one, you would likely have to use some of your own money to do so, in including to using the reimbursement from your insurance company.
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