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.
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.