Beyond the minimum auto insurance standards in Georgia that require purchasing liability coverage, you should consider adding several types of optional car insurance coverage to your policy that will provide greater protection if you ever are involved in an auto accident.Optional Coverage #3: Collision & Comprehensive
Collision and comprehensive are two types of coverages that are usually optional. (If you are leasing or financing your car, the finance company will require that you carry it to protect its interest.)
- Collision coverage pays for damage to your car when you are at fault for an accident. This includes times when no other car is involved, such as when you accidentally hit a pole or other object.
- Comprehensive coverage pays for damage to your car in non-accident situations, such as fire, weather damage, flooding, vandalism, and theft.
Because they can increase your premiums by 30 to 40 percent, you will want to carefully weigh the pros and cons of collision and comprehensive before you add them to your policy or before you nix them if you are already carrying them.
Generally, you do not need to keep this type of coverage on beater cars that have very little value.
Car owners also need to weigh, in advance, the potential insurance payout of any collision or comprehensive claim. Both of these coverage types have deductibles, which reduce the amount of any insurance claims check. Deductible amounts can be in the thousands of dollars if that’s what you picked when you bought the policy. A $2,000 deductible on a total loss car valued at $5,000 is only $3,000.
“Car owners also need to weigh, in advance, the potential insurance payout of any collision or comprehensive claim. Both of these coverage types have deductibles, which reduce the amount of any insurance claims check. Deductible amounts can be in the thousands of dollars if that’s what you picked when you bought the policy. A $2,000 deductible on a total loss car valued at $5,000 is only $3,000,” explains this Forbes article. So, if you have an older vehicle that is only worth $2,500 and collision/comprehensive will run you $300/year, you might want to forgo it especially when considering if there is a high deductible.
Where can I find more information about auto insurance in Georgia?
Before making changes to your current policy, make sure to speak to your insurance agent about your particular needs and concerns. She can help you select coverages and limits that are right for you and within your budget.
Do not forget to shop around, too. Certain providers may be able to offer you similar policies at a lower premium. You can also download the Georgia Office of Commissioner of Insurance’s Consumer Guide for Automobile pamphlet that has a lot of helpful information.
