Posted: October 14th, 2016
On your insurance policy, do you know whether you carry liability only coverage, full coverage, or a combination of both on your vehicles? Liability coverage pays for the damage you do to another person or to their property. When you add Comprehensive coverage and Collision coverage, you are adding coverages that carry with them deductibles.
These coverages pay for damage that happens to your vehicle once you have paid your deductible up front. Collision coverage can be defined as coverage that reimburses you for physical damage done to your vehicle which is your own fault. Comprehensive coverage has traditionally been defined as coverage that pays for damage that happens to your vehicle that results from any losses that are covered by your insurance policy other than a collision.
Comprehensive and Collision Coverages Explained Further
Examples of these covered losses on most automobile insurance policies are fire, theft, vandalism, water damage, hail, natural disasters like tornadoes or hurricanes, or contact with people, animals or falling objects. Historically speaking, Comprehensive coverage and Collision coverage both had to be added to a policy. You could not choose to add only one or the other of the coverages.
Notice that I said “traditionally defined” and “historically speaking” above. Things are changing with some companies where Comprehensive coverage is concerned. First, certain insurance companies are offering insureds the option of only adding Comprehensive coverage to their policies without also adding Collision coverage. Customers would, in turn, usually be covered against the non-collision losses mentioned above. Second, with traditional Comprehensive coverage, customers often choose to set their deductibles higher to save money.
The more the customer is willing to pay out of pocket in the event of a claim, the less the insurance premium is monthly. However, this can be a real problem for customers. For example, let’s say that you are a very careful driver. However, there is nothing that you can do to prevent some events.
For example, a car ahead of you kicks up a piece of gravel, or a rock falls loose from a truck, and suddenly you have a chipped windshield. You’re facing the prospect of repairs. The crack begins to run and you need to have your windshield repaired and fast! You call a glass repair company and they can repair your windshield for around $200. Suppose you chose a $500 Comprehensive coverage deductible to save on your monthly premium. Bottom line-you are out of luck. Your insurance policy won’t assist you at all in paying for the windshield repair because your Comprehensive deductible, or what you have to pay out of pocket before your insurance will pay, is more than the cost of the windshield repair.
The Good News
So, now the good news! Some companies are offering a separate glass deductible. This deductible can be as low as $50 per claim, as part of the Comprehensive coverage on their policies! This optional coverage is usually simply referred to as Glass coverage. This coverage, in most cases, is very affordable. For the average consumer, it costs somewhere between $50 and $60 per year.
If you desire full glass coverage that covers not only your windshield but also all of the other glass in your car, you can ask your agent about a separate glass rider for your policy. These separate riders are not usually very costly and will generally cover the full cost of windshield replacement at least once annually. The nice thing about a separate rider is that your insurance company doesn’t care why the glass needs to be replaced. If you have a glass issue, they will cover it.
Full Glass Coverage
An optional coverage called Full Glass coverage is available in some states. In the states that this coverage is available, it can be offered as part of your Comprehensive coverage or it can be offered in addition to your Comprehensive coverage. With Full Glass coverage, you may not have to pay a deductible at all for the repair of your windshield. That’s right! In that case, you would not have to pay any money for your cracked or broken windshield repair. Again, this is an optional coverage. Interested in purchasing this coverage? Check with your independent agent to see if it is available in your state.
Are you curious about this new coverage? Would like to add it to your existing policy? Contact Insurance Direct 123 today!