What is Collision Coverage?

Collision is one of the physical damage coverages available on your car insurance policy. Collision repairs or replaces your car after colliding with something that causes damage to your vehicle.  This could be collision with another car, object or even a single car accident.  

If you are financing your car, your finance company will require this coverage.  They also require that they are listed on your policy as the lien holder or lessor.  

To help decide if you need this coverage, estimate the approximate value of your car.  You can use resources such as Kelley Blue Book, NADA and Edmunds.  Compare the cost of the Collision coverage versus what it could cost you if there was a total loss.  Remember that most insurance companies pay out the Actual Cash Value of your car.  This is the replacement value of your vehicle minus depreciation minus your deductible.  


The cost of Collision is partially based on the deductible option you choose.  The higher the deductible, the lower your premium will be.  When you choose a higher deductible, that means there will be more money out of your pocket when there is a claim.  If you choose to not carry this coverage, you must pay the full amount of repairs or the full replacement cost out of your own pocket.

What is Comprehensive Coverage?

Comprehensive is one of the physical damage coverages available on your car insurance policy.  We often refer to this as “Comp” for short.  Comp covers fire, theft, vandalism, glass breakage, falling objects, civil disturbances and hitting an animal.  

If you are financing your car, your finance company will require this coverage.  They also require that they are listed on your policy as the lien holder or lessor.  

Comprehensive does not cover colliding with objects or injuries or roadside.    

To help decide if you need this coverage, estimate the approximate value of your car.  You can use resources such as Kelley Blue Book, NADA and Edmunds.  Compare the cost of the Comp coverage versus what it could cost you if there was a total loss.  Remember that most insurance companies pay out the Actual Cash Value of your car.  This is the replacement value of your vehicle minus depreciation minus your deductible.  

The cost of Comp is partially based on the deductible option you choose.  The higher the deductible, the lower your premium will be.  When you choose a higher deductible, that means there will be more money out of your pocket when there is a claim.  

Some companies offer an enhancement to the glass coverage encompassed within Comprehensive.  This may be referred to as “Glass Buyback” or “Full Glass”.  For a small price, you can have a lower deductible or no deductible at all when there is a glass claim.  Clients who want to pay no deductible or want very little money out of their pocket for a full windshield replacement can benefit from this upgrade.  

 

bigstock-Broken-Car-Windshield-135091478.jpg

Update Your Home Inventory

Now that the holidays are over it is time to update your home inventory.  We suggest you do a digital inventory of your house, townhouse or apartment every year.  An inventory will show an insurance adjuster what you have inside your home and can expedite the claims process.

Read More

Protect those new jewels, gadgets and toys!

It's important to know that all types of property insurance have limitations and exclusions. Some of these limitations relate to certain types of property when a claim involves theft. Jewelry, watches, furs, guns, gold ware, silverware, collections, fine art and computers usually have coverage only up to certain dollar amount, commonly about $1,500. 

Read More

Do I need Personal Injury Coverage?

Yes you do! This is not a standard coverage with most companies so it will need to be added - the cost is minimal.  This protects you against false arrest, wrongful eviction/entry, privacy violation, slander, defamation of character and emotional damages.  Having this coverage does not mean you can do it and will be covered.  There are exclusions for willful, malicious and illegal activities. These types of claims, although uncommon, often come with a large price tag.  The coverage may pay for defense costs plus the judgement or settlement to the injured person.  

Should I have Gap Insurance?

Vehicles depreciate the minute they leave the car lot.  Most vehicles lose about 20% of their value in the first year.  When there is a loss to your car, the insurance company pays the current market value or the depreciated value.  It is common to see the amount of the loan exceed the market value of the car.  Gap insurance covers this deficiency or "gap" between what you owe and what the car is worth.  Dealers may offer gap insurance and that can be an affordable way to go.  Some car insurance companies will offer it as well.  It is important to discuss this with your agent as the insurance company may have conditions such as only writing gap on brand new vehicles and limiting coverage to 25% of the vehicle's market value.