In the previous article we looked at the auto insurance coverage that is required by law in Minnesota. In this segment we will discuss the coverage that is optional on your auto policy:
Collision Coverage:
Collision coverage will pay to repair or replace your vehicle if it is damaged in a collision with another vehicle or a fixed object like a mailbox post. This coverage will pay up to the current actual cash value of your car. A deductible will apply to this coverage, and your insurance will pay the amount of damage above the deductible, so your deductible will be your out of pocket expense to repair your car. The higher your deductible, the lower your premium will be for this coverage. You must have the comprehensive coverage listed below in order to have this collision coverage.
Comprehensive Coverage:
This coverage is sometimes referred to as "other than collision" coverage, because it will pay for damage to your car that is caused by something other than a collision. Some examples would be loss by fire, theft, or vandalism. Hitting a deer or other animal would also be considered a comprehensive loss. Like the collision coverage above, a deductible will apply to this coverage. The higher your deductible, the lower your premium will be. You can have comprehensive coverage without incuding collision.
If you have a car loan or lease, the loan or lease agreement will require that you cover the car for comprehensive & collision.
Glass Coverage:
If you purchase the comprehensive coverage, you can pay an additional premium to have no deductible for glass damage. This coverage will pay to repair or replace a broken window in your car. If you choose not to add full glass coverage, your comprehensive deductible will apply to any glass damage.
Rental Reimbursement:
This coverage will pay the cost to rent a replacement vehicle if your car is no longer drivable after an accident, or while your car is in the body shop for repairs covered by a comprehensive or collision loss. This coverage will have a dollar limit on the daily rental fee.
Towing:
This coverage will reimburse you for the cost to have your car towed due to a mechanical breakdown.
If you have specific questions regarding your auto insurance coverage, please contact us at Rongstad Insurance Services.