Adverse selection is a phenomenon wherein the insurer is confronted with the probability of loss due to risk not factored in at the time of sale. This occurs in the event of an asymmetrical flow of information between the insurer and the insured. Description: Adverse selection occurs when the insured deliberately hides certain pertinent information from the insurer. The information may be of crit
Florida, Kentucky, South Carolina mandate the repair by comprehensive insurance coverage without a deductible because they have found that driving with damaged windshields is dangerous, this is an advantage of comprehensive coverage in these states. This being said, most insurance companies will waive the deductible in the case of a glass repair, so it is worth calling your agent or representative to know your conditions.
Bodily injury coverage is written with two limits: the first applies to each person; the second is related to each accident. As an example, minimum recommended coverage levels are usually $100,000/$300,000, which translates to policy limits of $100,000 per person in an accident and $300,000 total per incident. Required coverage levels vary by state, but can be as low as $10,000/$20,000, which is hardly sufficient for a serious accident.
When you purchase comprehensive coverage, you will select a set deductible, which is the amount you pay out of pocket toward a covered claim. Let's say you choose a $500 deductible, and your car is later damaged by hail in a covered claim. If it costs $1,500 to repair your car, you would pay your $500 deductible, and your insurance would pay the remaining $1,000.