The cost of replacing or repairing your car if it is stolen or damaged by fire, vandalism, hail or a cause other than collision … Payment is limited to your car’s actual cash value, minus your deductible.
Rancho Cucamonga, CA (PRWEB) September 22, 2010
A report released earlier this week pinpoints the vehicles that were most frequently stolen in the United States in 2009. The findings of the report, which was produced by the National Insurance Crime Bureau, highlight the need for consumers to consider whether their type of car is among the most frequently stolen and whether the benefits of purchasing comprehensive auto insurance may outweigh the costs.
One variable that practically all insurers will factor in when determining a motorist’s coverage premium is the type of vehicle that is to be insured. Certain models may be associated with higher safety ratings, higher repair costs or higher rates of theft; each of these variables can affect how much an insurance company will have to pay out on a claim and, in turn, how large of a premium an insurer will ask for.
Consumers who have or are planning to purchase an auto with a higher-than-average rate of theft may want to consider purchasing comprehensive coverage to insure against theft. Shoppers who are interested can get free car insurance quotes online in order to get a better idea as to how much this extra form of coverage could cost.
Though not required by law, comprehensive coverage provides types of protection to the policyholder that may not be afforded through a standard liability policy. According to the Texas Department of Insurance, comprehensive policies pay “The cost of replacing or repairing your car if it is stolen or damaged by fire, vandalism, hail or a cause other than collision … Payment is limited to your car’s actual cash value, minus your deductible.”
For those who are not required by a financing company to get such a policy, comprehensive protection needs to be weighed carefully. Since this type of insurance covers only up to the car’s actual cash value, consumers need to consider whether their auto is at a high risk for theft, how long they intend to keep the automobile for, how much in premiums they may rack up in that time, and compare that with how much their automobile is worth. If the costs seem to outweigh the potential benefits, it might be a better idea to invest in anti-theft devices and save the money that would otherwise go toward paying the premium.
Consumers who have automobiles with statistically higher rates of theft should be prepared to see higher rates for comprehensive protection. But the consumer has options here as well. In order to bring down premium costs, a higher deductible can be chosen. This decision also needs to be made carefully, though, as a deductible reduction effectively increases the amount of damages that may have to be covered by the motorist.
To learn more about auto insurance issues, consumers can go to http://www.onlineautoinsurance.com/quotes/free.htm where visitors will find informative articles and a free-to-use quote-comparison generator.