Comprehensive Auto Insurance McAllen Texas TX
Reader’s Question:
Howdy! Friends tell me that collision and comprehensive coverage are optional. But why do banks in McAllen Texas TX require it?
Douglas
McAllen, TX
Howdy, Douglas!
It’s typical of banks and other money lenders like the one you have in McAllen Texas TX to require borrowers to take out an auto insurance policy with collision and comprehensive coverage because these have features not found in coverages required by law. Let me briefly describe each.
The collision coverage part of the auto insurance policy pays for repairs on your bank financed car if you cause an automobile accident. If damage is so severe that repair costs reach 70% or more of the value of your car, the auto insurance company will consider your vehicle “totaled” and will offer you its actual cash value after towing away the wreck to a salvage yard in McAllen Texas TX.
You can minimize premium costs on the collision coverage portion of your auto insurance policy by raising your deductible to, say, $1,500. A deductible is an amount you advance from your own funds before your coverage is used.
The comprehensive coverage part of the auto insurance policy pays for loss or damage to your car not caused by accidents. Risks covered include natural calamities like earthquake and hurricane, fire, theft, and vandalism. A deductible also applies here.
Entering your zip code on the form found on this page will bring up premium cost information on collision and comprehensive coverage.
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