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1-Comprehensive Deductible

Comprehensive coverage pays for claims related to fire, vandalism, flood and theft.  Many people will purchase lower deductibles such as $50 or $100.  They do this so that they don’t have to pay the full cost of a windshield.  The additional cost of purchasing the lower deductible is usually minimal.

1A-We have several companies that offer a separate coverage for glass.  This allows you to get your glass replaced for free.  You can then have a higher comprehensive deductible for fire, vandalism and theft.

2-Collision Deductible

Collision claims are claims where you hit an object and damage your car. It could also be a situation where you are hit and the other driver has no insurance or leaves the scene of the accident.

When deciding which deductible to select, consider that oftentimes there isn’t a large difference in cost between a $500 and a $1000 deductible. If you are saving more than $100 a year in premium, consider the $500. Also, consider how many vehicles you have with full coverage. If you have three or more vehicles with full coverage, you may be better served by purchasing a $1000 deductible. The combined savings will allow you to save money. The chances of having multiple accidents in a single year that are your fault are small.

3-Loan and Lease Gap Coverage

Whenever you buy a car, most dealerships offer you the opportunity to purchase loan or lease gap coverage. This coverage pays the “gap” in your lease or loan payoff in the event of a total loss. Dealerships sell this coverage for around $500 for the life of your loan.  So, if you have a 5 years loan, the cost is $100 a year.   You can buy this from your insurance company for around $50 a year. Insurance companies typically only offer this coverage for a vehicle in it’s first 3 model years. If your vehicle is older than 3 years old when you buy it and you want the gap coverage, purchase it from your dealer.

4-Dropping Comprehensive and Collision

If your vehicle is worth less $3,500 a year, it’s time to consider dropping these coverages and going to “LIABILITY ONLY” on that vehicle. It doesn’t generally make sense to pay the premium of full coverage, and then have a deductible to pay for a vehicle with a value at $3,500 or less.

5-Add Property Insurance

Every company gives a multi policy discount for adding a homeowners, condo or renters insurance policy. If the premium being charged is competitive it makes sense to bundle them with the same company.

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  • Michael Lee says:

    My wife and I just moved to a new state and have been looking at auto insurance. I wouldn’t have thought that there is not much of a difference in price for a $500 and $1000 deductible. Maybe I will have to look into this to see if I’d want that for all our vehicles.

  • Millie Hue says:

    Thanks for sharing that we should buy a car that is at least three years of age so that insurance companies will offer full coverage. I will follow your advice to save money in the long run. The car that I need to buy is actually a gift for my son for his coming birthday, so this will be perfect since we also have a limited budget.

  • Angelina Brain says:

    Thanks for sharing these important factors to be looked at when getting auto insurance service. These factors are really valid, I really appreciate your work and wish you luck for more amazing work in the future.

  • Angela Waterford says:

    Wow, I had no idea that I could get a comprehensible deductible for my auto insurance. I think that getting a collision deductible would really help me in case of accidents. If adding property insurance will help me save money, I’ll ask an auto insurance broker how I can get them for my future plan.

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