Comments on: A Quick Look At An Auto Insurance Question

By: Trent

Trent — Sun, 11 Mar 2007 01:14:56 +0000

Toby: it’s the diversity of opinion and thought that makes it interesting.

However, it all comes down to reading and knowing your policy and what it covers.

Auto insurance is a very hard thing to give specific advice on because it varies so wildly, thus to give advice that’s actually useful one has to speak in generalities.

Please, readers, before you follow any of the advice, above all, read your policy!

By: Toby Getsch

Toby Getsch — Sat, 10 Mar 2007 17:36:38 +0000

This conversation has gone sour. Here’s why.

1-Insurance laws are different in different states. Some states are no-fault. Others are not. This totally changes the dynamics of what insurance you get and what makes sense.

2-I don’t think anyone has been accurate when they think that comprehensive insurance pays for repairs when anything is in normal mode. Typically, comprehensive insurance is for fire, wind, theft, vandalism, and those sorts of things. It is definitely *not* for what most people would call repairs. That’s really bad advice and a bad thought process to think of comprehensive in that direction.

3-Collision insurance was not mentioned and that is something that varies greatly by states. Most often collision covers your own car in an accident. In different states and with different insurance companies, the rules around at fault, no-fault, collision and comprehensive are different. Liability will cover the other person’s car, but collision covers your own. Knowing the difference between collision and comprehensive is critical. And, again, the laws in different states affect what falls into what category.

Also, with any of these, there are many variables and limits and deductibles to consider. Because there are so many significant variables, excellent advice for one person is often ridiculously awful advice for someone else. There are a number of personal decisions about insurance. We all have different comfort levels, savings levels, income levels, etc. We need to take the time and we need to do our homework.

Trent, you’ve done a great job trying to keep this simple and on topic for the high level intended. In the comments, we’ve gone deeper and often less wise in my opinion. Our comments have soured this topic and really made for some terrible, awful, bad advice. I look forward to hearing how you chime in and put us in our places. ;)

By: Lisa Knight

Lisa Knight — Sat, 10 Mar 2007 14:12:33 +0000

I can say that we have comprehensive on a late model vehicle (we own, paid in full). Mostly because it is our only vehicle at the moment & being a mini van I wanted the extra glass coverage. Windshield cracks can happen often here in the lake effect snow belt of NY just driving down the road… So while it is an added expense it is worth it to our family to have, it’s probably a waste, but our policy gets us a rental during repairs, so we aren’t out a vehicle.

By: Bucky

Bucky — Sat, 10 Mar 2007 09:35:45 +0000

Don’t mean mean drop collision rather than comprehensive? Comprehensive is relatively cheap compared to collision (for me, comprehensive is only ~1/10 collision).

By: kellie

kellie — Fri, 09 Mar 2007 23:39:59 +0000

Koby beat me to it. He is correct, I couldn’t get a loan for my vehicle unless I had full comprehensive on it. So, I can’t switch to just liability until I pay for the entire thing. I wish it were always so cut and dry but it isn’t.

By: Tim

Tim — Fri, 09 Mar 2007 21:12:38 +0000

again, READ YOUR POLICY.

second, don’t forget to save that insurance deductible or save for that major auto repair in your emergency fund.

By: Koby

Koby — Fri, 09 Mar 2007 21:07:14 +0000

There is one small issue with the gentleman in the original story. The article says,

“…cost of it is more than the remaining monthly payments on my car…”

That is a major factor in the insurance issue. Most auto loans require full comprehensive (read full coverage) on vehicles that have loans on them. So that fellow with the engine trouble can’t switch to liability only because his loan contract does not allow it.

By: david

david — Fri, 09 Mar 2007 19:55:02 +0000

Also, sorry, I forgot to mention that a lot of comprehensive coverage, depending on the state/city, do not cover repairs at all if not related to any kind of collision. For instance, Metropolitan in Mass says: “For instance, your damages are not covered if they are caused by wear and tear, freezing, mechanical breakdown or road damage to tires by potholes.”

Anyway, just an FYI

By: david

david — Fri, 09 Mar 2007 19:52:16 +0000

Hi Trent, thanks for these posts. I am betting that most people did not know that comprehensive insurance pays for repairs, most people figure insurance is just accidents, theft, etc. As far as I have seen, if it is above your deductible amount, then they should pay for the balance of the repair. One thing to keep in mind though is that you do not want to keep having them pay for things, as it shows poorly on your insurance record and you could possibly be dropped. Not fair, I know, but it still can happen if you file claims too often.