What is Specified Causes of Loss Car Insurance Coverage?
If you are shopping for car insurance coverage, you might consider specified causes of loss coverage as a cheaper alternative to comprehensive car insurance. This type of coverage protects you against specified perils, which you get to choose. For example, if you decide you want physical damage insurance and auto theft insurance, but not commercial car insurance or coverage for natural disasters or personal bodily injury, specified causes of loss insurance may be the best choice for you.
Specified Causes of Loss vs. Comprehensive Insurance
Comprehensive insurance coverage essentially covers everything except for damages to your car caused by a collison. From natural disasters to theft, comprehensive insurance has you covered. Since comprehensive insurance is such a large umbrella, it can be very costly, especially if you have a low deductible. So, if you want
to pick and choose only certain aspects of comprehensive insurance and therefore pay less, you should consider specified causes of loss insurance. With this insurance, you can decide exactly what incidents you want to be covered.
Dangers of Specified Causes of Loss Insurance
The problem with this kind of insurance is that there can be quite a few holes in the coverage. Specified causes of loss insurance won't do you any good if you're only insured against floods and fires when your car is damaged by a hurricane. In this case, the money you've spent on insurance is wasted.
Specified causes of loss insurance can be useful if you believe you only need certain incidents covered and you don't wish to pay for comprehensive car insurance coverage. Be careful of gaps in your coverage, however.
Category: Auto Insurance