Coverage For Damage To Your Vehicle
For many people another key component to the personal auto policy are the coverages for "collision" and "other than collision"
which are commonly referred to as physical damage coverages. This is the part of your personal auto insurance policy that actually
protects your car. These coverages apply regardless of who is to blame for an accident.
If your vehicle is leased or financed, your lending institution or leasing company will require you to have both collision and
"comprehensive" coverage which they might refer to as "other than collision". When you secure both collision and comprehensive coverage
you have complied with the lender's requirement of providing full coverage.
What Does Your Collision Coverage Cover?
Your insurance policy will say that collision coverage covers "upset of a covered auto" and impact with a another vehicle or object.
Collision includes your car striking another vehicle or your vehicle striking a fixed object like a bridge or your vehicle
overturning. This seems pretty clear cut and by and large it may be, but there are areas within this coverage where you will need
expert advice.
Take an easy one: As you are pulling your car into your garage, the garage door slams down and causes $6,000 damage to your hood.
If you simply call the claims department you will be given a claim number and more than likely your claim will be a collision claim
and may well be chargeable.
Here is where an expert in the field makes a difference. If the garage door slid down its own track and struck your car this likely
is a collision loss and is likely chargeable. However, if the garage door came off its track and fell due to the force of gravity onto
the car, this would be considered a "falling object" loss and covered under "other than collision" coverage and may well be
non-chargeable. Many people have a lower deductible on comprehensive than on collision so here real dollars are lost because
of less than expert advice.
How Do You Handle This Real Life Scenario
You go away for either business or pleasure and rent a car. You have full coverage on your own car and you put the rental on your
Platinum or Titanium credit card. This happens every day. Here's the question - the rental car company is going to offer you
collision coverage for $7 - $12 a day. Do you take it or not?
You, of course, can make your own decision. But if your agent tells you without hesitation that you have nothing to worry about
then you are not getting the full story.
Here is the deal: Collision is defined in the policy as "sudden and direct loss". Say you have an accident and there is $5,000
damage to the rental car. You have collision coverage on your car back home with a $500. Simple. That coverage transfers over,
you pay $500 and go back to your trip.
That's not the problem. The direct loss is covered but the rental car company's prized auto can't be rented while it is being
repaired. This is generally referred to as "down time". This is the problem. It is considered an "indirect loss" and it is
not covered. You would have to pay for this out of your pocket. It could easily be several thousands dollars. Your agent
must be able to give you this answer.
What Is Covered Under Comprehensive or Other Than Collision Coverage
Comprehensive or "other than collision" is the broader of the 2 coverages that provide coverage physical damage protection to your
car. Basically, it is everything that collision isn't and in many cases comprehensive claims are either not chargeable or have
less of an impact on your auto insurance premium than a collision claim might have.
Here is a list of what is covered under comprehensive or "other than collision" coverage:
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Missiles or falling objects
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Fire
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Theft
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Explosion or earthquake
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Windstorm
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Hail, water, or flood
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Vandalism
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Riot or civil commotion
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Impact with a bird or animal
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Glass breakage
Real Dollars At Risk -
What Your Chandler AZ Agent Should Tell You About Comprehensive Coverage
Whether your claim is handled as collision or comprehensive may well impact not only how much you pay for your deductible but
also possible chargeable accident surcharges later on.
For example, say you are following a landscape truck and it tosses cement block off the back and impacts your car. Is that
comprehensive or a collision claim? Answer - it depends how the impact occurs. If the block is in the road it becomes a
fixed object - collision coverage applies and may well have a surcharge. However, if the block is on the way off the truck
when it hits your car - it is a missile or falling object and is a comprehensive claim and may not be chargeable.
Sounds obscure - probably is - a local expert can tell you how to handle strange real life scenarios just like this.
We encourage you to have meaningful dialogue with us so you know exactly how these important coverages
apply in your individual case.
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