What are all these coverages listed on my auto insurance policy?
"I was looking at my car insurance because my rates keep going up and I see all these costs for different optional coverages: comprehensive, collision, rental reimbursement. Do I really need all this coverage if it is optional?"
“If you are still making payments on the car, the lender generally requires that you keep full coverage (comprehensive and collision) on the vehicle until it is paid off. Even if the car is paid off, you may want to keep some or all of this coverage in place, depending on the vehicle’s value and condition.
Collision coverage pays for damage to your vehicle caused by hitting another vehicle or object, regardless of fault.
Comprehensive coverage pays for damage to your vehicle that’s the result of fire, theft, vandalism, falling objects, and some other non-collision causes.
Rental reimbursement coverage helps pay for the cost of a rental vehicle while your vehicle is being repaired as a result of a covered claim. Some repair shops offer a free rental vehicle if you use them for your insurance claim, so you may be able to remove rental from your policy.
You can also look into adjusting your collision and comprehensive deductibles to reduce your insurance cost, as long as you still meet the minimum requirements of your lienholder.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Can someone still sue me if I have car insurance?
Does my insurance provide any legal protection? I live in Oklahoma and I'm wondering if someone could still take me to court if I have car insurance in an accident.
Jul 20, 2021
How do home insurance companies decide if an area has a high crime rate?
My sister and I have similar backgrounds and own similar homes, but my premium is noticeably higher because my neighborhood is considered more dangerous. How do insurance companies evaluate the crime rate of a neighborhood?
Apr 02, 2021
How can I get car insurance after getting denied for coverage?
I did not have a car or insurance for more than a year. I have a car now, but can’t get insurance. I keep getting denied from insurance companies because of my previous claims and lapse in coverage. How can I find insurance?
Apr 26, 2021