The majority of New York citizens with vehicle insurance recognize the terms “Collision coverage” and “Comprehensive coverage” in their policy. They see these terms but don’t know how they can help them or when it’s no longer a necessity. People are almost always looking for cheap NY car insurance and knowing more about the impact of comprehensive and collision coverage, you can decide if you need to increase, lower, or drop it all together to save on the policy premium.
What is collision coverage? This coverage covers the cost of damage caused by an object to your vehicle. For instance, it covers the damage after an accident with another vehicle, an inanimate object (mailbox, telephone pole, etc.), or a single rollover crash.
Of all coverages you’ll pay for in a policy, this is the priciest and increases/lowers in response to the deductible. Deductibles begin at $100 and increase to $1,000: the higher your deductible, the lower your premium.
What is comprehensive coverage? This coverage pertains to any incident that doesn’t involve a collision and is beyond your control. Such instances include:
- Civil disturbance
- Falling objects
- Glass repair/replacement
- Hitting an animal
- Hail/ice damage
Comprehensive coverage will cost less to carry, but the chosen deductible does factor in with the cost. Again, deductible prices range from $100 to 1,000. The higher the deductible, the less your premium.
Glass coverage is tied to comprehensive coverage, and several insurance companies operating in New York demand drivers to “opt-in” for no-deductible full glass coverage. Without it, you could pay the glass repair/replacement cost yourself. In this instance, it may not be worth filing a claim with your insurance company.
What Risks are Associated with Collision and Comprehensive Coverage?
The primary way to save money on your car insurance is to increase the deductibles of both coverages. It’s good to go in with a plan when you are getting a NY car insurance quote as selecting the right options can end up saving you a lot of money over the term of the policy. You could also opt to increase the collision insurance due to its enormous expense. However, doing so means paying a higher deductible if you are deemed at fault for an accident and need your car repaired. Determine what the savings would be compared to the cost of repair with a higher deductible.
For example, you choose a $1,000 collision deductible instead of a $500, saving you $250 a year. If you’re involved in a collision, you’ll pay an additional $500. Divide that by the $250 savings, and you get to a two-year breakeven point. You have a good deal if you don’t file a collision claim with your insurance during that timeframe.
You can also save money by dropping both coverages on a vehicle with a low market value. For example, you have an older model vehicle worth just $500, but you’re paying $200 or more for both coverages. Save yourself money by dropping the collision insurance or both coverages altogether. Again, determine the savings in the grand scheme of things before making any decision.
When You Are Financing or Leasing Vehicles?
If the vehicle you are driving is financed or leased, the lender or lessor requires that both coverages are included and have a cap of how much deductible you can get, typically $1,000.
If you are in an accident that results in damage to your vehicle and the other driver is deemed at fault, their insurance company will be responsible for covering the cost of vehicle repair or replacement. They should also provide you with a rental vehicle while yours is repaired.