Pothole- and Flood-Caused Damages Covered Under Optional Portions of Auto Policy – Yahoo! News

NEW YORK, April 8 –

Auto Policyholders Have Options For Dealing With Winter's Aftermath

NEW YORK, April 8 /PRNewswire-USNewswire/ — Drivers whose automobiles are damaged after their vehicle strikes a pothole or gets caught in floodwaters can file a claim with their auto insurer, so long as they have collision and comprehensive coverage, according to the Insurance Information Institute (I.I.I.)

“The collision and comprehensive provisions of an auto insurance policy are optional and increase the cost of insuring a car. But those additional premium dollars pay big dividends when a pothole wreaks havoc on your car's undercarriage or a flash flood soaks your vehicle's interior,” said Michael Barry, vice president, media relations, I.I.I.

Seventy-two percent of insured drivers purchase collision coverage and 76 percent buy comprehensive coverage on top of their liability coverage, based on 2007 data compiled by the National Association of Insurance Commissioners (NAIC).

“You don't need either collision or comprehensive coverage to drive legally, but both provide important financial protections and they might be required if you financed the purchase of the car through a bank or another financial institution,” Barry added.

Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents often cost more than the minimum limits. In today's litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket — and those costs may be steep. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

In addition to liability coverage, drivers should also consider buying collision and comprehensive coverage when purchasing an auto insurance policy. Following is a quick primer on each optional coverage:

Collision coverage reimburses you for damages to your vehicle caused by potholes. It also pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. Even if you are at fault for an accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount it paid you from the other driver's insurance company. If your insurance company is successful in this regard, you'll also be reimbursed for the deductible you paid your insurer. Collision coverage is generally sold with a deductible of $250 to $1,000 — the higher your deductible, the lower your premium.Comprehensive coverage generally covers you for damages caused by something other than a collision with another car, although potholes are an exception.  It reimburses you for vehicle losses incurred by floods as well as perils such as fire, vandalism and windstorms. Even damages to your car that are caused by earthquakes, falling objects (e.g., trees), an explosion, hail and riots are covered under comprehensive policies. In addition, if your car is damaged as the result of a collision with an animal, such as a deer, comprehensive coverage also kicks in. Some companies offer glass coverage as part of their comprehensive package and will repair or replace a cracked or shattered windshield. Some insurers have separate glass coverage, which can be purchased with, or without, a deductible. So check with your insurer. Comprehensive insurance is usually sold with a deductible ranging from $100 to $300.  Despite the economic advantages offered by auto insurance policies with collision and/or comprehensive coverage, purchasing both might not be a prudent expense for the owners of older cars. Review your coverage at renewal time to make sure your insurance needs haven't changed. Auto dealers can tell you the market value of your vehicle. Or you can look it up online at Web sites such as Kelley Blue Book

For additional information on auto insurance premium trends, log onto the I.I.I.'s Facts and Statistics section. The I.I.I. also has a section on its Web site offering the Consumer Basics on purchasing auto insurance.

FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org

SOURCE Insurance Information Institute

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Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

Lisa

Houston Texas

A young person has to be certain that necessary levels of coverage are in place. If the teen is irresponsible and reckless driver, having physical damage of comprehensive and collision coverage should be standard. This may not sound a cheap car insurance for young people, however it will save you a lot in the long run.

When a young driver is doing auto insurance comparison, it is very essential to understand the types of coverage. If a young person is not properly insured and gets into an accident, parents will usually cover excess expenses. So if you are a parent of a young driver it is important that they are properly insured so that in case of any unforeseen event or accident, it will not cause your family any financial burden.

If your teen drives in an affluent area, be certain that Liability coverage is maximum to fix an expensive car. The minimum required liability in the state may seem cheap, but one rear-end accident could cost more than the premium will cover. In case of an accident, it is cheaper to pay the higher monthly premium than pay an expensive lump sum to the vehicle owner of the damaged automobile. Even if you can afford the difference between the coverage on the policy and the cost of the automobile that needs to be fixed, it is much better if you avoid the risk.

If you want to get cheap car insurance for young people, do not make it happen by limiting car insurance coverage. It would be best to find an auto insurance discount that you can get to lower car insurance rate.

Nick

Houston, TX

Congratulations on buying your first car!

Going back to your question, property damage and physical damage are both types of auto insurance coverage and they differ from each other. Let me just give you an explanation of those to give you a clearer understanding.

Property damage coverage is a kind of auto insurance coverage that pays for the damages you have caused to another party’s vehicle or property. Deductible is not offered on that kind of coverage.

On the other hand, physical damage coverage refers to collision and comprehensive coverage. Collision coverage pays for the damage on your car if it collided with another property or vehicle or object. Meanwhile, comprehensive covers you for the damage incurred on your car because of non-vehicular related accident like hail, fire, theft, vandalism etc. In general, these coverages have different deductibles.

For more information, you could seek the help of your auto insurance agent in Texas to better help you in getting cheap auto insurance rates.