While cutting rates may seem like a good thing for consumers, it is evident that the only means by which insurance companies can afford to lower rates is by reducing coverage. The educated consumer should examine the policy carefully and keep the long term financial implications in mind. With strict policy, there are many restrictions in place; traditional, a claim will be paid only if there is an identified "fault" party, such as a thief, another driver, etc. With comprehensive car insurance, the car is generally covered fully against any losses. Yet, some cutbacks were seen in this insurance policy as well as caps on expenses and fees for specific coverage.
Comprehensive car insurance covers you from anything other than an accident or damage to your vehicle. In most states this is not required, but rather an additional service offered by insurance companies in Comprehensive car insurance the hope of making more money.
Face it, collisions are not the only thing you should think about when you are looking for auto insurance. How many scratches, dents and other possible things can damage your car?
The main question that needs answering from a consumer choosing coverage is simply this: How much can I afford to pay in the event of a real crisis? With comprehensive car insurance, it has covered most of the losses, even if they are acts of God or the result of vandalism. Traditional insurance is much more restrictive. Therefore, the potential of out of pocket cost is greater, because some incidents are not covered at all. In those instances, it may halt the loss of financial ruin and long-term uncertainty.
Experts agree that a slightly larger monthly premium may be worth the investment compared with the potentially high cost of a non-covered loss. The advertising is done by insurance is not always as clear and informative as it should be; for that reason, it is recommended that consumers review traditional policies and comprehensive car insurance, both to ensure that they understand exactly what is covered and exactly what they remain liable for. There are many excellent web sites and much-respected insurance professionals who can provide information and assistance.