Comprehensive coverage on an auto insurance policy covers your vehicle in the event of a certain type of loss. Comp coverage is also known as Other Than Collision Coverage.
The three most common types of Comprehensive claims are.
- You hit a deer. (Or a deer hits you)
- Someone vandalizes or steals your vehicle.
- A rock hits your windshied.
I was discussing a comp claim with a friend of mine recently. He is claim rep for Geico and handles claims in and around Philadelphia. He had just finished up working on a claim for a 20 something year old girl who had all four of the tires from her 2008 Civic stolen from her car. The car just sat there on the ground, no blocks. Just a pathetic looking car.
The damage to the vehicle—$4,100!
Her comprehensive deductible—–$2,500!!!
That deductible is outrageous. Absolutely insane!!
I did a quote to my policy to see what the difference in price would be if I went to a higher comp deductible. Right now I have a $100 comp deductible on both cars on our policy. Travelers doesn’t even offer a $2,500 comp deductible! The highest they will go is $1,000.
I would save $100 per six months if I increased my deductible on both cars to $1,000. That’s a decent savings. But what happens if a truck kicks up a rock and cracks your windshield?
Now you’re out $1,000. It doesn’t seem worth it to me to carry a higher comprehensive deductible.
I recommend a $100 comp deductible. If you work at a body shop or have some sort of connection somewhere than maybe you want to increase it to $250. But the savings just aren’t there to go much higher than that.
I recommend that you take a look at your auto policy to make sure that you are happy with your coverages. Especially if you have a policy with a company like Geico or another on-line carrier. Computers are not like people. They do not care if you are properly insured. You should consider your insurance agent a friend. And a good friend will always do what’s best for you.
If you are concerned with your coverage limits take a look at this post for a good starting place.
As always, feel free to call me with any questions you have.