Optional Auto Insurance Coverage in Delaware
These types of car insurance coverage are not required by law in Delaware. However, if you take out an auto loan, your bank or lender will likely require collision and comprehensive coverage.
Collision coverage: pays for physical damage to your car as the result of your vehicle colliding with an object, such as a tree or another car. This coverage is based on the value of your car and can be costly.
Important information about collision coverage: Car insurance policies only require the company to cover your financial losses, not to replace your vehicle. In the case of an accident involving an older car, the cost of repairing it can quickly exceed the value of the car and your insurance carrier will pay you what the car was worth rather than fix it. In severe cases, the value of the car may be less than premiums paid for the coverage. Therefore, if your vehicle is worth less than $2,000, there is little reason for you to purchase collision coverage, because you are likely to pay more money in premiums than you would ever receive as a result of your claim. This coverage may not pay the full replacement cost of the vehicle or may not satisfy the balance of your auto loan.
Comprehensive coverage: pays for damage to your car from almost all other causes besides an accident, including fire, severe weather, vandalism, flood and theft. Comprehensive coverage also will cover broken glass, such as windshield damage.
Uninsured motorist coverage: pays if you incur losses from a driver who does not have auto insurance or a hit-and-run driver. This coverage, when in effect, takes the place of the insurance that the other driver should have had but did not. The coverage comes at an automatic $250 deductible for property damage, regardless of the deductible you may have on your other coverage.
Uninsured motorist coverage: will have policy limits. It does not protect the other driver. Your auto insurance company may sue the other driver for any money the company pays to you because of the other driver’s negligence. You must have made a police report about the accident in order to make a claim under an uninsured motorist policy.
Under-insured motorist coverage: protects you if you are involved in an accident that is not your fault and the other driver does not have enough insurance to cover your loss. This coverage does not pay for damage to your vehicle.
Towing and labor coverage: pays the cost of towing your car to the repair shop subject to the limit of your policy. Premiums for this coverage are very inexpensive. However, if you are a member of an auto club, you probably already have this service.
Rental reimbursement coverage: usually pays the cost to rent a car after an accident, subject to the policy's terms. The premium will vary from insurer to insurer.
Nov 3, 2008
Optional Auto Insurance Coverage in Delaware
____________________________________________
Older Post:
