Archive for July, 2010

Auto Insurance Tips

Wednesday, July 28th, 2010

A little known aspect of insurance policies here in California, is that Comprehensive claims don’t raise premiums! These claims are typically: vandalism, flying objects (i.e. baseballs, rocks & golf balls), sand damage, hail damage, damage from objects that were driven by high winds, damage from animals (including damage done to a wiring harness from chewing rodents), spills inside the vehicle cabin (i.e. milk, ink, motor oil). Please check your own policy to see what’s included in the comprehensive catagory.

Keep your comprehensive deductible low. $500 might be okay on a collision deductible where one tries to never make a claim, but Comprehensive deductibles should be kept low due to the difference in consequences of making a claim. Some insurance companies still offer a zero dollar deductible. Yes you will pay a little more, but the benefits far outweigh the added expense. As an example, I recommended a customer with a Corvette to reduce his Comprehensive deductible from $500.00 to $0. Almost a year later I had a chance to talk with him and ask him if he’d taken my advice. He said yes, and that it had only cost him an additional $5/month. A single windshield replacement from rock damage would pay for years of this wonderful coverage.       

If a collision claim is under $750.00, most insurance companies won’t apply a rate increase to your policy.