First, I’d like to say that I’ve been an insurance agent for a little over a year now, and it always shocks me after a theft or break in of a vehicle when people tell me they have liability only on their vehicle. Then, on the other end of the spectrum, folks will say ” I’m not sure what I have, but I’ve got Full Coverage,’ not even knowing what that means. Many people pay in the neighborhood of a thousand dollars or more for their auto or motorcycle coverage, so it’s a wonder that folks know so little about something they spend so much on.
What I would really like to get across is the relative inexpense of carrying Comprehensive coverage, or “comp”, and the benefits it provides. Now, just so everyone knows what we’re talking about, lets define Comprehensive coverage:
Comprehensive insurance provides protection for a car, motorcycle. or other vehicle in the event of damage by something other than a collision with another vehicle or object. For example, it would cover events like theft, fire, broken glass, and more.
Now that we know what it’s for, let me make my case as to why you should consider having it on your policy. Many people often lump Comp coverage in with collision coverage, which is often much more expensive and makes the insurance seem very expensive. What many people don’t realize is that most often you DON”T need to have both comp AND collision. Sure having “Full coverage” (or in other words a policy with Liability, COMP AND COLLISION) is nice to say, but if you’re looking for a cheap policy and were thinking about going with liability only, here is why you should consider comp coverage.
On it’s own, comp coverage is often very inexpensive. Don’t believe me? Take a look at your insurance policy declarations and the breakdown of cost per coverage, or call your agent to ask how much the comp on your vehicle costs. Better yet, I’ll use myself as an example. On my motorcycle, I have a $250 deductible, and I pay only $85/yr for comprehensive insurance (It will be even less in the near future). Assuming someone steals my bike today, without the comp insurance I would be out $2,500 or so. However, subtracting my $250 deductible from the $,2500 the insurance company would give me for the bike, I would have to have the policy for over 26 years before I would have paid more for the comp coverage than that cost of the bike! Now I doubt I’ll have this bike for 20+ years, but lets say I plan to have it for 5 more, but it gets stolen in four. Now it’s only worth $2,000, my deductible is still $250, and my rate for the coverage has flatlined at $85. Paying the $250 deductible and the $340 over the four years for coverage, I would still net $1410 of the $2k I get for the loss! On my Cage the value is even greater; For the less than $1,000 I would pay for the coverage and my deductible for7 years, and I’m covered for a value of almost $10,000!
If your car or motorcycle are older and your record is fairly clean, you’re likely to have even lower rates for comp, even with a low deductible. My point is, it doesn’t hurt to consider! Ask your agent or check online to see what the difference is to add comp to your policy, and if you already have it see how inexpensive it can be to go to the next lowest deductible! Jodie went from a $250 deductible to a $100 deductible for $6 more per year!! Save yourself some grief, make sure you’re covered!
Is it spring yet!?!?