car crashA “full coverage” car insurance policy consists of two parts aside from the basic coverage that is required in order to operate a motor vehicle on the nation’s roadways. The first part is known as comprehensive. This type of policy provides protection to the insured in the event that their vehicle is damaged by anything “Other than collision”. Items protected in these policies include but are not limited to such perils as theft, fire, vandalism, striking an animal, windstorms, flying objects, hail and broken windows. One must keep in mind that in both comprehensive and collision auto insurance policies, their insurer has the right to choose two methods in which to pay a claim. The first choice is that they can give the owner of the property the amount that is necessary to repair or replace the vehicle that suffered the loss. The other would be to compensate with the actual cash value of the damaged or stolen automobile.

Although this type of coverage protects against certain perils, there are exclusions that are not protected. This may include electronics that are not permanently installed in vehicles such as: radios, stereos, tape decks and compact disc players. Other electronics that may be excluded are such items as CB radios, telephones, two-way radios, receivers, monitors, radar detectors and personal computers. If the covered automobile is damaged as a result of being involved in illegal activities, it may also not be protected. Custom furnishings and custom murals, paintings, decals or graphics can also be an exclusion. One should inquire with their insurer if they believe that they may carry items that could fall into this category to clarify whether they are covered or not.

Collision Car Insurance

This is the second part of a “full coverage” policy. This is intended to cover the insured vehicle in the case that it sustains damages as a result of impact with another vehicle or object, or in the event of the upset of the covered automobile. These types of policies are usually required if one is financing or leasing a vehicle. Financial institutions usually make this a condition in the loan agreement between them and their customer. There intention is to protect their investment in the case that it is involved in a traffic collision. It is beneficial to the insured, since it could become quite expensive to repair a damaged automobile. If they do not have coverage and their property is damaged, they can find themselves making payments on a vehicle that has sustained damage or is inoperable.

A major benefit of this type of extended protection is the fact that it is not dependent on fault. Regardless of who may be found liable, the property will be covered under the coverage. If the insured is found to be the cause of the accident, they may have to pay a deductible in order to have the repairs made, or to be entitled to compensation. The amount of deductibles are chosen by the customer at the time they negotiate policies with a company or agent. The amount that they choose can change the price of a premium; usually the higher the deductible then the lower the premium. One should evaluate if the savings on a policy will offset the amount that they would have to pay if they do happen to find themselves in a situation where they would have to file a claim.

For more information on comprehensive and collision deductibles and options one can refer to the New Jersey Department of Banking and Insurance for more extensive details.