Tuesday, 22 November 2011
Comprehensive Auto Coverage Needed For Acts Of Nature
When it comes to acts of God or acts of nature and your auto insurance, you need to have comprehensive coverage to make sure the damage will be taken care of. These terms are used by insurance companies when damage occurs by acts of nature, such as a storm knocking a tree down on your car. There are numerous things that fall into this category, including earthquakes, hurricanes, fires, floods, and snowstorms etc.
If you just have collision and/or liability coverage on your auto, you’ll need to pay for the damage out of your own pocket. But with comprehensive coverage, you should be covered. An act of God or nature is something that can’t be prevented and nobody is at fault. This means if you make a claim due to this type of damage your rates usually won’t increase.
However, some people try to shirk their responsibilities by blaming accidents on acts of nature, such as crashing in a snowstorm. But, this isn’t considered an act of nature since there was a driver behind the wheel who chose to drive in those weather conditions. If your car is damaged in a collision and the other person’s insurance company refuses to pay then you may have to take them to court or file a claim with your own insurer and they’ll attempt to collect for you.
Most insurance experts feel that comprehensive coverage is essential for owners of new cars since damages from acts of nature can reach thousands of dollars or can total an auto. For example, this year’s tornadoes in Joplin, Missouri, resulted in approximately 6,500 auto claims which totaled about $54 million.
But while most comprehensive plans cover acts of nature it’s still a good idea to check and see if the coverage has any uncovered perils such as flash floods and lightning strikes. Areas of the country that are more susceptible to hurricanes, floods, and earthquakes usually charge more for this type of insurance because the region is at a higher risk.
According to an article by Fox Business, if you owe any money on your car then comprehensive insurance should be bought to protect yourself. Along with covering natural disasters, it will protect the vehicle against just about any other damages caused to it that don’t occur in a collision. If you car is only worth about $1,000 though, the insurance might not be worth buying. The National Association of Insurance Commissioners estimates that 77 per cent of car owners in America have comprehensive coverage.
