What you need to know about your auto insurance coverage (Part 3 of 3)
What could possibly be more fun than a post about auto insurance, right? Well, if you own a car, there might be some things you want to look at on your auto insurance policy. This is the third of a three part series on auto insurance. In part one, we took a look at the liability section, part two dealt with personal injury protection; part three covers collision, comprehensive and the add ons.
Collision
Collision, as those with advanced degrees may deduce, deals with what happens when you collide with something; more specifically, what happens to your wallet. Collision coverage provides reimbursement to you for damage incurred to your vehicle during an accident. What’s most important to know about this coverage, though, is the way an insurance company sees your vehicle and the way you see it are two very different things. You view your ride as an efficient mode of transportation, maybe an extension of who you are, or maybe just a bucket of crap that barely gets you places. Your insurance company, on the other hand, only sees it as that last one. What that means is they will give you much, much less to repair or replace your car than you think it’s worth. As a result, trying to replace your car for the same make, model, and year in the event it is totalled will be impossible. So as soon as your car’s value approaches your deductible, drop this coverage. By the way, if your car is leased or financed, you have to carry this coverage.
Comprehensive
Comprehensive is the insurance industry euphemism for “all the other crap that damages and destroys cars not an accident.” This coverage is for vandalism, theft, tree falling on it. I think in most cases you can’t have comprehensive without collision for some reason, so once you drop collision this falls off, too.
Add ons
This category is the catch-all for a list of products of sometimes dubious value. There are increased rental reimbursements, towing and labor, roadside assistance - you get the idea. They come a la carte, so if you like one you can pick it up for a small fee. Are these worth it? It’s up to you. Keep in mind, though, that sometimes you already have the coverage elsewhere. For example, high-end cars typically come with roadside assistance for a certain period of time.
