Uses of Collision and Comprehensive Car Insurance and Their Distinctions
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by: ellaelgin
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Word Count: 371
Date: Tue, 25 Jan 2011 Time: 7:40 PM
in order to get paid for your losses when you crash with other vehicles and obstacles including animals and road signs you would need collision insurance protection. Collision insurance would cover the insured whether or not he is at fault in the accident. It also provides for rescue trucks, storing, and scrapping if the vehicle has been badly damaged. Ordinarily, it will cover the cost of repairs to the vehicle, or replacement value if it is totaled.
And comprehensive auto insurance covers the other losses that may come onto your car. These are theft, fire, vandalism, weather damage, riots and other similar losses. In brief, comprehensive vehicle insurance covers everything except collision. Commonly comprehensive vehicle insurance does not cover acts of God, theft or vandalism by family members or employees, personal effects in the car, tires, or damage due to unacceptable maintenance.
Commonly collision and comprehensive auto insurances are available as a package, though it is possible to buy the two types of coverage separately.
In some cases, both covers may be required, in particular in the case of financed cars. Auto loan providers simply wish to be paid back if the vehicle is damaged either way and will ask proof of insurance before they advance the loan. In addition it would cover the borrowers as the funds would be available to pay off the rest of the loan when the car is destroyed.
Rates for those covers are worked out the usual way. The age and experience of the driver, annual mileage estimated, the location and value of the vehicle will all be taken into account. While the owners of the new cars could be urged to take these covers, owners of older cars should weigh the cost of the insurance against the value of the car to determine the feasibility of such insurances.
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