South Florida Injury Attorneys Blog
Although people don’t plan for auto accidents, they happen and can cause significant damage and loss. Insurance coverage may effectively cater to the cost of injury treatment and financial losses. In addition, a Boynton Beach car accident lawyer offers legal services that can help with replacement, repairs, and other costs that are not covered by insurance.
Comprehensive coverage is different from other motor insurance options. It has specific advantages and offers different benefits for auto accident victims. This article discusses comprehensive coverage to differentiate your choices.
Boynton Beach Car Accident Lawyer Explains Comprehensive Coverage in Auto Insurance
You cannot be too careful on Boynton Beach, Florida, roads. Auto accidents can happen anytime. In 2019, 38 persons died in car accidents in Boynton Beach, Florida, and 27 vehicles were involved in fatal accidents.
Comprehensive insurance coverage deals with damage caused by accidental events, but not collision accidents. That is, it does not cover crashes involving other vehicles or single-vehicle collisions when you hit a fixed object. It comes into play when your car needs to be repaired or replaced because of attempted theft or another incident that lead to car damage or loss.
If your car is leased or you have financed it, the lender or leasing company will likely ask you to obtain comprehensive coverage. Comprehensive coverage is optional if you own your vehicle and it is fully paid for. However, it is prudent to have it as it provides certain benefits that you cannot receive from other auto insurance policies.
How Does Comprehensive Coverage Work?
Insurance policies can be confusing if someone does not have the right information. For example, to understand comprehensive coverage, you must know about its limits and deductibles.
A deductible amount can be chosen when you purchase a comprehensive insurance policy. The deductible is the amount you must pay out of pocket before your insurance begins to pay for a covered claim.
Your insurance premium will be less the greater the deductible you choose. But on the other hand, the lower your deductible, the higher your insurance rate.
For example, say you decided on a $500 deductible. Then, while driving, you unintentionally hit a deer, causing $1,500 in damage to your car. If your claim is accepted, you will pay the $500 deductible, and the insurance provider will pay the remaining $1,000 as compensation.
This may give the impression that the deductible is pricey. However, imagine if you were in a more severe auto accident instead of hitting a deer while driving, causing your vehicle to be totaled.
In this case, your insurance provider would likely issue a check for the value of your car (up to the limit of your coverage), and you would be required to pay the $500 deductible. As a result, the deductible becomes very profitable.
Next, consider the second aspect of comprehensive coverage: the coverage limit. A coverage limit is a feature of every insurance policy. The maximum amount a policy will pay for a covered claim is known as the limit.
For example, the car’s cash value is often the limit for comprehensive insurance coverage. By its very nature, comprehensive coverage will only cover the cost of replacing your car at its current value.
The limit of coverage is the current cash value of your car. This means that the amount you can seek for compensation might be lower than the amount you bought your car for because the value depreciates over time.
What Events Are Covered by Comprehensive Coverage?
Comprehensive coverage will cover the cost of the repair or replacement of your vehicle in the case of the following:
- Fire outbreak
- Theft or Attempted theft
- Damage caused by civil unrest, such as riots
- Natural disasters, such as hurricanes or tornadoes
- Damage caused by hitting an animal while driving
- Damage caused by an object falling on a vehicle
Events Not Covered by Comprehensive Coverage
The following events are not covered by comprehensive coverage:
- Damages to your vehicle from a car collision
- Damages to another person’s car from a car collision
- Medical bills of victims of a car accident
Comprehensive Coverage vs. Other Types of Insurance
Some car insurance policies are regarded as the “big 5” options for auto insurance. These policies include:
- Comprehensive coverage
- Liability insurance
- Personal injury protection (PIP) insurance
- Collision coverage
- Uninsured motorist/underinsured motorist (UM/UIM) coverage
Comprehensive Coverage vs. Collision Coverage
Comprehensive coverage might give an impression from its name that it covers every type of auto accident. However, it only covers accidents that are not caused by a collision. On the other hand, collision coverage specifically covers damages caused by accidents that involve a crash with another car or object, such as a fence or a building.
To understand the difference between both insurance policies, consider this analogy: while collision coverage covers damages that occur if you hit a pole, comprehensive coverage will not. However, comprehensive coverage should cover repair or replacement costs when the pole falls on your car.
Another point you should note about both is that while comprehensive coverage covers a broader range of claims, it is generally less expensive than collision coverage.
Comprehensive Coverage vs. Other Types of Insurance
The other auto insurance policies cover special events, not included in both collision and comprehensive coverage. For example, liability insurance covers the damages caused by you to another person during a collision.
This means that if you were driving while distracted and caused an accident, liability insurance should pay the victim economic and non-economic damages. However, liability insurance policies do not apply in Boynton Beach, Florida.
Florida is a no-fault state, so drivers must have PIP insurance. However, if the losses exceed the policy limit and you did not cause the accident, you can file a personal injury claim, ideally with the help of a Boynton Beach car accident lawyer.
What to Do if Your Comprehensive Damage Claim is Denied
It is not unusual for insurance companies to deny a comprehensive coverage claim. If this happens, take the following steps:
- Understand why your claim was denied. Usually, the insurance company will send a letter stating what led to the decision.
- After understanding why the insurance company denied the claim, the next thing is to gather evidence to prove your case. After gathering proof, appeal the comprehensive coverage claim denial.
Beyond these stated steps, seek legal counsel from a Boynton Beach car accident lawyer. You will be better positioned to seek compensation with legal representation.
Our Boynton Beach, Florida, Car Accident Lawyers Are Ready to Help You Seek Compensation
Personal finances, among other issues in someone’s life, will be affected when an auto accident happens. The situation can, however, be better with the help of our legal team at Frankl Kominsky Injury Lawyers.
Our car accident lawyers can use their expertise to help you seek compensation after an auto crash and will give you expert opinions about car insurance for your vehicles in case of future events. Call (561) 800-8000 to schedule a free consultation today.