Insurance companies offer, “collision,” and “comprehension” coverage’s, which are designed to protect your automobile. “Collision” coverage protects your motor vehicle in the event it is damaged in an auto accident, hit and run accident, one car accident or accident while it is parked. Automobile collision coverage is usually sold with a deductible. The higher the deductible, the lower your premium. It has been my experience that a collision deductible of $500.00 is a smart deductible to purchase. A deductible of $250.00 could cost you an additional insurance premium of approximately $150.00. It is my recommendation that it is not prudent to spend $150.00 to possibly save $250.00. However, a deductible in the amount of $1,000.00, may only save you an additional premium of approximately $15.00 t0 $20.00. Therefore, it is my recommendation to spend an additional $20.00 of insurance premium, to possibly save an additional $500.00.
Comprehension coverage protects your vehicle from theft or vandalism, as well as damage to your automobile glass. In the event your automobile is stolen, your comprehension coverage will pay for the repair of the damages to your vehicle or the fair market value of the vehicle, if it is declared a total loss or is not recovered.
A problem will arise if your vehicle is declared a total loss and you owe more money on your car loan than the true value of the car. As such, you may be, “upside down,” and still owe money on your car. Insurance companies sometimes offer, “gap” insurance, which will pay the difference between the fair market value of your car and what is owed. This additional coverage is usually inexpensive to purchase.
Another feature of comprehension coverage is this coverage pays for damage to the automobile glass of your car. Also pursuant to Florida law, your comprehension deductible will not apply if your windshield is damaged from flying debris, (such as a rock from a truck). Unfortunately, your deductible will apply to the remaining windows in your car.
If your insurance company refuses to pay you what you believe to be a fair amount in the event your vehicle is damaged, please submit an inquiry to me and I will be more than happy to speak to you free of charge.