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Comprehensive Deductible on an Auto Insurance Policy

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.

Thank you newsday.com for the photo

Thank you newsday.com for the photo

  1. You hit a deer.  (Or a deer hits you)
  2. Someone vandalizes or steals your vehicle.
  3. 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.

-Keith Laskey-

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