Auto insurance coverage also includes policies that cover physical damages on the insured. The insured is covered for damages one gets as a result of an accident or third party- theft, animals or fire. The following are associated policies:
• Comprehensive Coverage (apart from collision) – This covers the insured's vehicle form accidents that may occur apart from collision. Incidences include fire, theft, animals or floods. It may also cover a vehicle that one may be driving in special circumstances. The insured is paid costs of fixing the vehicle, less deductible the amount one chooses. Higher deductibles ensure the promotions are low. This policy is not a state requirement but can act as security against loans or leases. The policy applies mostly to those vehicles which are advanced or leased or if one is buying a new car in excellent condition. It is not advisable for old vehicles to take this cover. Coverage is subject to terms and conditions in the policy document.
• Collision Coverage – This covers the insured's vehicle when it collides with another car or object. It covers the cost of fixing the car less the deductibles of choice. It is advisable to keep the premium low by choosing a deductible of a higher amount. Older vehicles are recommended not to take this cover as the coverage is limited to the value of the car. The policy is good for those cars which are advanced or leased and for new vehicles that may need excellent maintenance. This cover is not a requirement by the state but those with loans or leases are often required to have it. The cover is limited to terms and conditions in the policy.
The term "deductible" amount refers to the portion of the claim an insured income to pay from own resources. The claim is paid less this amount which is indicated in the policy document. If the deductible is of a low value, the premiums paid will be high. Policy holders are often advised to put a higher deductible value.