Collision, Comprehensive, Property and Rental…Oh My!

One of the things that drive Verti as a company is to be human and helpful. Whether that means recommending songs to sing in the car or tips on how to jump start your car; we’re here to make insurance a little easier (and a lot more fun) to understand. So, we decided to break down a few of the confusing but common insurance terms into plain English, and explain what they mean to you. 
 
To begin, we’ll start by explaining four optional coverages commonly found in most car insurance policies. While these are typically optional, some of these may be required by certain lienholders if you are leasing or financing a vehicle. 
 
  1. Collision Coverage: Collision covers the physical damage to your car as a result of an accident. If you’re insured through Verti –we require that you have comprehensive coverage if you choose to have collision as well. In most cases, a deductible does apply for this coverage.

  2. Comprehensive Coverage: This coverage provides coverage to your vehicle for things other than a collision. For example, fire, theft, vandalism, falling objects or contact with an animal. Your deductible would also apply to use this coverage as well.

  3. Property Damage: Property Damage coverage covers other people’s property – in other words this covers other people’s vehicles, houses, mailboxes, fences and the like.

  4. Rental Reimbursement: This optional coverage provides rental reimbursement in the event of a covered loss if you also have collision and comprehensive coverage. You’ll select a coverage option for your rental reimbursement, such as $30 a day $900 maximum. This is the most common option but there are other limits available. A lot of people think this coverage will pay for renting a car for leisure – but in reality, this only kicks in if you have a loss due to a collision to temporarily replace your means of transportation. 
 
Hopefully this helped you better understand these coverages on your car insurance policy. Any other terms that you’d like us explain? Leave us a comment on Facebook or send us a tweet on Twitter to let us know! 

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