Should You Carry Comprehensive Auto Insurance In Georgia?
Reader question:
Should I add comprehensive and collision coverage to my Georgia auto insurance policy? What is it anyway?
Gloria
Thank you for your question, Gloria.
Whether or not you add comprehensive and collision coverage to your Georgia auto insurance policy should depend on several factors. Before we cover those, though, let’s first look at what comprehensive and collision coverage are.
- Comprehensive coverage is…
Comprehensive coverage is the kind of coverage that takes care of damages that result from things that aren’t automobile accidents. For example, if you were living in New Orleans at the time of Hurricane Katrina, then any flood damage caused to your car would fall under your comprehensive coverage. This is because comprehensive coverage takes care of damage resulting from natural disasters.
It also takes care of damage that results from criminal activity. For example, if your car is stolen, then it will be replaced if you have comprehensive coverage. If your car is vandalized, then it will be repaired under your comprehensive coverage portion of your insurance policy.
- Collision coverage is…
Collision coverage is like property damage liability, except that instead of being for the person on the other end of your auto insurance accident, collision coverage takes care of damage caused to your own vehicle. This includes repairs if your vehicle is simply damaged, and the actual cash value if your vehicle is totaled.
Collision coverage also applies when you get into an accident that involves your own property. If you’re parked backwards in your driveway, say, and you put your car in reverse instead of drive by accident, and as a result back into your garage, then the damage to your garage and your car will be covered by your collision coverage.
- Why you need them (or don’t)…
Collision and comprehensive coverage can be very useful when you get into an accident or have your car stolen, but not every vehicle needs it. One of the quickest ways to cut the costs on your insurance premium is to drop your extra coverage, after all.
If you have a car that is old and not worth more than a thousand dollars, then you do not need comprehensive and collision auto insurance coverage. You will end up paying more for the coverage than your car is actually worth, and there’s no point in that.
If you are still buying a car, then you are probably required to have comprehensive and collision coverage. If you don’t, then you could end up paying for a vehicle that you no longer have if your car ends up totaled.
Cheers,
Fashun Guadarrama.
What Determines Your Auto Insurance Rate in Georgia?
Reader question:
How do car insurance companies determine my auto insurance rate here in Georgia?
Paul
Thank you for your question, Paul.
There are so many factors that go into a single Georgia auto insurance quote, that I can’t even begin to address them all in a single post. A few decades ago, the factors could be counted on the fingers of one hand, but each year the process grows more complex. What I can do, though, is tell you about one thing that auto insurance companies look at to determine your insurance rates.
- Your CLUE report.
The majority of policy holders don’t have anything on their CLUE report, and this is mostly because the information only remains there for ten years. Unlike credit, which most of society uses constantly, the average insurance claim is filed only every half a decade or so.
The CLUE report is not connected to you yourself, but, much like your auto insurance policy, is connected to your vehicle. The CLUE report will have information on any past claims and repairs, and when you get a new car you can purchase a copy of your CLUE report from ChoicePoint. Since it does affect your insurance premium, it is probably a good idea to buy a CLUE report before you finalize the purchase of your car.
Like a credit report, sometimes CLUE reports contain mistakes. If you see one, you should contact ChoicePoint to have the offending note removed. This takes less than a month in the majority of cases. Unlike a credit report, though, if you have some information that would make your CLUE report look better, such as the installment of an anti theft device, then you can have that added to the report, making your auto insurance rates go down.
- Your CLUE report and your GA auto insurance company.
Once you are already with a company, they will almost never check your CLUE report again. Normally, these reports are looked at when you are getting a policy with a new insurance company.
The CLUE report will not be used the same across the board by every insurance company, but the number of claims you have on it will certainly determine whether your rate goes up or down.
Cheers,
Fashun Guadarrama.
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