Optional Auto Insurance Policies Protect against Unexpected Events

04/10/2010

Cost-cutting motorists may not see the value of optional auto insurance policies - until they slam their vehicle into a pothole or wild animal.

That's when collision and comprehensive coverage are necessary, according to a recent report by the Insurance Information Institute. The first of these covers damage incurred by hitting a pothole, flipping over or colliding with another car or object. Deductibles range from $250 to $1,000 for this kind of policy.

Damage not caused by a collision will be covered through a comprehensive policy. This includes natural events like flooding or windstorms as well as vandalism and fire. Comprehensive coverage also insures against damage from hitting animals, according to the report.
"The collision and comprehensive provisions of an auto insurance policy are optional and increase the cost of insuring a car," Michael Barry, vice president of media relations for III, said. "But those additional premium dollars pay big dividends when a pothole wreaks havoc on your car’s undercarriage or a flash flood soaks your vehicle’s interior."

Data from the National Association of Insurance Commissioners showed that 72 percent of drivers have collision coverage, while 76 percent buy a comprehensive policy.

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