These days, car insurance rates have gone up considerably. If you have opted for comprehensive car insurance chances are you are covered for any damages that might occur to your vehicle. Damaged car expenses are covered by comprehensive coverage. However, at times the cost of the insurance could be more than expenses required to fix the damage. Here are three ways to determine if the insurance costs are worth it.
The question of whether you need car insurance to fix damage expenses will depend on the extent of damage. If the damaged car has incurred heavy losses and requires substantial replacement of parts then filing a claim makes sense since the expenses are so significant. In such instances the expenses associated with the damage would be too much to handle individually in which case compensation from the insurance company would be required. Typically, comprehensive coverage will compensate for damages arising out of fallen trees, fires or theft. In other words it would compensate you for damages arising from incidents other than an accident. If the damage is minor such as a cracked windshield or a slight dent on the body of the car then it may not be worth it to file a claim.
In many types of insurance policies you will be required to pay a high deductible before you a file a claim towards your damaged car. This high deductible would be worth it if the expenses arising out of damages are significant enough to erode your finances substantially. If the damage is so less that it can be fixed with a minor repair it does not make sense to pay the deductible or file the claim. This is because the costs associated with the deductible and filing the claim would easily outweigh the costs associated with actual repair. Hence receiving compensation from the insurance company in this context does not seem worth it.
If you have a car that is very expensive and of a superior model and make the car insurance rates would also be higher compared to what would be applicable if you had a low-value car. This would also reflect on the extent of expenses paid towards maintenance and damages on your car. The higher the value of the car the more will be the expenses paid towards damages. In this case, opting for car insurance compensation is worth it because it protects you from heavy financial losses.
In cases of minor damages low value of the vehicle or having to pay high deductibles it is not worth opting for car insurance to fix damages to your vehicle. Car insurance rates can be substantially reduced by judiciously opting out of optional tertiary coverage.