Most people have heard the terms comprehensive and collision and even have that type of coverage on their vehicle. Yet, these same people couldn’t tell you the difference between the two.

Here is an easy way to remember which is which. Let’s say you were driving downt he road and an object fell off the vehicle in front of you. This object hits you while it is still moving. You could even say it was a flying missile if you so desire. Because it was a flying missile and hit you, you have a comprehensive claim.

On the other hand, let’s say it stopped and you hit it. You now have a collision claim. By the way, because you could have avoided it, you will more than likely have a chargeable accident on your record.

2) Personal Property Accurate Inventory Tip

All of us seem to have stacks and stacks of personal property. If some sort of disaster hits, we want to claim everything on our insurance. Therein lies a problem. You may have to prove you owned everything you are claiming.

The best proof scenario to support your claim is to have an accurate inventory of your personal property. The easiest way to produce this accurate inventory is to videotape everything in your home. Whether it be furniture, clothing, kitchen cabinets, televisions, radios, you name it, video tape it.

Most of your items are probably covered under your homeowners policy, but in case of a loss and you are asked for a list of the things that were lost, you can produce the video for the insurance adjuster.

It should go without saying that you should update your video on a regular periodic basis. If you are like most people, you get rid of items and you add items. Keep the videotape someplace other than your home.

3) Difference Between Replacement Cost Valuation and Actual Cash Value

Replacement Cost Valuation and Actual Cash Value are two terms you will find in your insurance policies. Auto insurance policies are never written on a Replacement Cost Valuation. They are only written on an Actual Cash Value basis.

People who own older cars find themselves receiving a check rather than a new car of the same make, model and year of the one they lost. In other words, they receive a check for what it was worth.

If your home burns down, your policy will permit you to build a new home in its place. You will receive the actual cash value up to your policy limits for rebuilding.

4) Scheduling Personal Property

Most people do not realize that articles of personal property may not be insured or insured well enough. For example, take that brand new video camera you just bought. You are out on your sail boat and decide to lean over board to film the school dolphins swimming along side the boat and it falls out of your hands and into the ocean. The camera isn’t covered.

A lot of golfers use carts when they play a round at their favorite links. Suppose you are one of them and as you drive over the bridge crossing the ravine to get to the hole, your clubs break loose and fall into the water below. They are not covered.