Most people who have NY car insurance are aware of Comprehensive and Collision Coverage but most don’t know what they actually cover. A better understanding of each can help you to determine the risk and reward of either increasing deductible amounts or even dropping coverage to save on your policy premium.
What Does Collision Coverage Pay For?
In general, it pays for damage to your vehicle for the following a collision with an object.
- Collison with another vehicle
- Single car roll over crash
- Collision with an object such as a guard rail, telephone, pole, mailbox, fence, etc.
Collision coverage is typically the most expensive portion of your overall premium and has a chosen deductible. Deductibles normally range from $100 to $1,000 with higher deductibles reducing the amount of premium.
It’s important to note that if you’re in a crash where the other driver is at fault and causes damage to your vehicle, that driver’s insurance is ultimately responsible to pay for the damage to your vehicle and even provide a rental car while yours is in the shop being repaired.
What Does Comprehensive Coverage Pay For?
Comprehensive coverage is often termed as “other than collision” because it virtually covers everything else. It’s meant to cover damage for things that are outside of your control.
- Hitting an animal
- Glass Repair or Replacement
- Hail and ice damage
- Falling Objects
- Civil disturbance
Compared to collision, comprehensive coverage is significantly less expensive and also carries a chosen deductible. Like collision, typical deductible amounts range from $100 to $1,000 with higher deductibles reducing the amount of premium.
Please keep in mind that glass coverage is connected to your comprehensive coverage and many NY insurance companies require you to “opt in” to full glass coverage that has no deductible. Many people are unpleasantly surprised when they get their windshield replaced and are responsible for paying their full comprehensive deductible when they assumed there was not going to be any of pocket expense for the service.
Risk/Reward And Savings Utilizing Comprehensive and Collision Coverage
One of the simplest ways you can save on your insurance is to raise your comprehensive and collision deductibles or even just collision deductible since it is the most expensive of the two.
The risk here is that you have a collision accident for which you are responsible and have to pay a higher deductible to get your car repaired. The reward is the annualized amount of savings for which you could even calculate a breakeven point.
For instance, say raising your collision deductible from $500 to $1,000 will save you $250 for the year. Your risk is paying an extra $500 for a collision crash divided by the $250 reward savings which results in a 2-year breakeven point. So if you go more than 2 years without a collision claim you make out on the deal.
Another way to save if you are insuring a vehicle that has a low market value is to drop comprehensive and collision coverage entirely.
As an example, if you have an old car on your policy that is only worth $400 and you are paying $200 or more for comprehensive and collision coverage you might consider dropping both or at least the collision. It really just depends on your risk tolerance as compared to the savings you’ll receive.
Finance and Leased Vehicles
If your vehicle is financed or leased, the lender or lessor will require that you carry both comprehensive and collision coverage and many will have a cap of how high your deductible can be, usually up to $1,000.
If you have any questions regarding auto, home and business insurance options, please contact us, we’re always glad to help. The NY Insurance Hub serves Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo.