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Consider Cutting Comprehensive Coverage

comprehensive auto coverageInsurance premiums are a large part of any car owner’s budget and the temptation is to try to find a way to reduce payments like cutting comprehensive coverage or even eliminating it all together.  While I understand the sentiment, since vehicles are our lifelines to the world, it’s important to take a hard look before you make a choice that could cause financial misfortune cutting comprehensive coverage.

Collision and comprehensive are the two auto insurance coverages that pertain to any physical damage of your vehicle. Most people understand that collision applies to situations where your vehicle is damaged in an accident-either with another vehicle or a stationary object.

Comprehensive coverage is defined as all damage that is not included in collision coverage. This would include falling objects, collisions with animals, theft, vandalism and glass breakage.

80% of Drivers Overpay for Insurance. Do You? When your vehicle gets older, it may cross your mind that you could save a few dollars by cancelling collision and comprehensive coverage. Besides protecting you if your vehicle is stolen or vandalized, comprehensive coverage also covers glass breakage.

Let’s say you wake up one morning and find that your windshield is smashed. If you call your insurance company, chances are they will call a glass company and arrange for someone to come out and replace the windshield. Because it is a safety item, there is generally no deductible that applies to windshield replacement. The cost of replacing a windshield varies depending on the make and model of the vehicle but the average cost is about $350.00.

On my auto policy the premium for comprehensive coverage is $55.80 for six months. It is just under 10% of my premium. For me, it makes sense to pay that $55.80 just for the glass coverage alone.

Sometimes if a vehicle is not going to be driven for an extended period of time, collision coverage will be removed but, comprehensive coverage should be left on the vehicle. The reason I feel that way is that the vehicle could be stolen, vandalized or the glass could be broken. If it is not going to be driven and it is not parked on a public road, there is little risk of a collision but there are a number of other things that could happen that would be covered by comprehensive coverage.

So, the bottom line is that reviewing your policy for ways to save money can be a good thing but eliminating comprehensive coverage can be very risky and not always as big a savings as you might expect.