Direct Car Insurance – Comprehensive Coverage

Direct Car Insurance – Claims That Are Covered

A few years back it was necessary to insure separately against special hazards such as fire, theft, hail, flood and windstorm! Now all these hazards and more can be included in comprehensive coverage under any direct car insurance policy.

Comprehensive coverage is so all inclusive that it lists the types of claims excluded rather than those that are included. Under this coverage the insurance company agrees to pay for “loss of or damage to the automobile except that caused by collision or upset.”

Here is a list of some of the hazards that come under comprehensive coverage:

  • Glass breakage (no matter how the glass breaks)
  • Damage caused by missiles or falling objects
  • Fire
  • Theft
  • Explosion
  • Earthquake
  • Windstorm
  • Hail
  • Water
  • Flood
  • Vandalism
  • Riot
  • Civil commotion
  • Damage caused by children.

Just about any conceivable damage to the automobile is covered. If you have children, you probably appreciate some of the cute things they can do to a car. The damage they cause would be covered under “comprehensive.” For example:
1. In the gas tank they put sand, dirt, pebbles, or cement (even hoptoads).
2. On the upholstery they spill paint and ink, or cut it with knives.
3. They mar the finish with sticks or golf shoes.
4. They break the glass with baseballs or stones.

  • Fire, lightning and transportation. Protection against these hazards is included in your comprehensive coverage. It can also be purchased separately. It protects you against accidental loss or damage to the automobile caused by fire or lightning, by smoke or smudge due to faulty heating equipment, or by the standing, sinking, burning, collision or derailment of any conveyance in or upon which the automobile is being transported on land or water.
  • Theft coverage. This is included in comprehensive coverage, but it may be purchased separately along with fire insurance. It protects you against loss of or damage to the car caused by theft, larceny, robbery or pilferage.

You can rent another car if yours is stolen. The standard theft policy includes reimbursement for taxicab fares or car rental. You should report the theft to the police and your insurance company as soon as possible. The rental reimbursement period begins three days after you make the report and ends when the car is located or a settlement is made for the theft. It is limited to $5 per day or a total of $150.

The amount you receive for rental reimbursement is not deducted from the settlement of the theft loss.

Direct Car Insurance – Exclusions to Physical Damage Coverage

While “physical damage” coverage is indeed very broad, it does not include all losses or damage. Physical damage direct car insurance does not apply to:
1. Loss due to rebellion, insurrection, war or confiscation by government,
2. Damage caused by wear and tear, freezing, mechanical or electrical breakdown (unless such damage is the result of other loss covered by the policy).
3. Robes, wearing apparel and personal effects.
4. Loss due to conversion, embezzlement or secretion by any person in lawful possession of the automobile under a bailment lease, conditional sale, mortgage or other encumbrance.
5. Losses incurred while the car is used as a public or livery conveyance. (Participation in car pools is not considered use of car as a livery conveyance.)
6. Damage to tires, except damage caused by fire or theft, or unless such damage is coincident with other loss covered by the policy.
7. Losses which occur while the automobile is used in illicit trade or transportation.

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