Should you get “full coverage car insurance”? This type of car insurance is required on any vehicle you are financing but of course you can get it whether you are financing your vehicle or not. Your lien holder will require you have physical damage coverage on your vehicle as well as the state required liability coverages.
Let’s discuss this type of coverage.
Part 9 Comprehensive Insurance
Generally, Comprehensive or Part 9 covers the following:
- Car theft
- Damage from fallen objects on the vehicle like trees, potted plants,etc.
- Hitting an animal that jumps in the way while driving
- Damage to the car due to vandalism or riots
- Vehicle catching fire or explosion
- Rocks, debris or other cargo falling on the car from other vehicles passing by
- Damage caused in a natural disaster including tornado’s, hurricanes, floods, earthquakes,etc.
Damage Not Covered by Comprehensive Insurance
The Comprehensive (Part 9) part of the Massachusetts auto policy does not cover the the following types of damage. You will need to get separate car insurance for these types of damages.
- Property stolen from the vehicle
- Damage caused to the car in a collision
- Damage caused to the vehicle of a third party in a collision
- Any legal fee and medical expenses of your passengers or compensation for lost income
Comprehensive Insurance vs. Collision Insurance
Some people mistake comprehensive insurance with collision insurance. Both types of these coverage’s insure your car but comprehensive insurance provides coverage for different types of risks such as theft, fire, vandalism and glass.
Comprehensive insurance is always less expensive than collision insurance. Collision is the most expensive part of the Massachusetts auto policy especially if you are a new driver or you have a record of accidents and/or careless driving.
Cost of Part 9 Comprehensive Auto Insurance in Massachusetts
The cost of comprehensive auto insurance (Part 9) is in the range of $100 – $300, depending on the value of the vehicle and risk factors. If you agree to a higher deductible, you can lower the cost of premiums by 20 to 40 percent.
How Does Comprehensive Insurance Work?
Suppose you get this coverage for your vehicle which has a value of $15,000. Your Comprehensive coverage will cover damages to you concerning fire, vandalism and theft. Typically you would have a $300 deductible. Therefore you pay the first $300 and the insurance company covers the rest.
In Massachusetts if your windshield breaks or cracks there is usually no deductible on glass – glass would be covered 100%. This part of Comprehensive alone makes the cost worth while. If you have to purchase a new windshield it can cost $200 and up.
Limit of Comprehensive Insurance
There is a limit to the maximum amount of coverage that you can get through comprehensive insurance. In most cases, this is equal to the value of your vehicle.
In case your vehicle gets stolen, the insurer will check the current actual cash value of the vehicle. For example, suppose you bought your car at $15,000 and driven it for 2 years. The current depreciated value of the vehicle is $9,000 and this is the amount you will get from the insurance company less any deductible.
In many cases you can add Massachusetts auto gap coverage to the policy if the vehicle is less than 5 years old. The auto gap insurance policy will guarantee that you will get compensated for any difference between the insurance payout and what you owe the lien holder for the loan on the vehicle.
Collision Insurance Part 7
This important part covers damages to your vehicle if you are at fault in an accident or you get hit and run. An appraiser would determine the damages to your vehicle, you would be responsible for your chosen deductible and the insurance company would pay the rest. This is the most expensive part of the policy.
Typically people choose to get Part 7 Collision when the value of the vehicle is at least $3000 and/or the car is less than 10 years old.
The liability portion of a Full Coverage policy consists of Parts 1, 3, 5 and 12. These all represent coverage’s for Bodily Injury to others in Mass, outside of Mass and for passengers in your car. You would also get Part 2 Personal Injury Protection for medical payments up to $8000 for yourself.
In addition Part 4 is also required by law in Massachusetts, this covers damage to someone else’s property.
So if you rear end a car or hit someone’s property such as their house – this part would cover the other person’s property. The state minimum is $5000 and other higher limits are always available.
Other Optional Coverages
You also have the option of getting Part 10 for a rental car if you have a claim and/or Part 11 for Towing and Labor in case you need a tow.
All together these coverage’s make up “full coverage” on the Massachusetts auto policy.
For more information and to discuss your situation with a professional representative you can visit either of out two locations or call Western Mass Auto Insurance today at 413-543-3800.