When it comes to a Texas car insurance policy, everything other than liability coverage is considered optional coverage, however, most people don’t think that way. With that in mine, last week, I outlined four car insurance options worth considering (see https://wiseinsurancegroup.com/texas-car-insurance-options-part-1/). Here are four more that may be of interest to you.
Glass: Most of the major car insurance companies include glass repair with their standard policy. This coverage will repair a chipped or cracked windshield as long as the chip is not deeper than 0.25 inches or the crack is smaller than a dollar bill.
There are a few companies who offer glass coverage which will repair or replace the windshield with little or no deductible even if it’s outside the above guidelines. The additional cost is in the range of $25 to $50 a year which varies by company. It’s a helpful option if you’re in an area where a lot of gravel is being hauled!
Original Equipment Parts: In an effort to reduce the cost of accident claims, many insurance companies have transitioned to using third party parts such as bumpers, fenders, light kits, etc. The cost savings for them is between 30% and 60%. The downside is there’s no telling whose part is now on your car.
The replacement parts are supposed to fit the same and be up to the same standards of crashworthiness, but there’s very little data on that or their impact on the resale value of your vehicle. For those who object to third party parts, they can elect to pay the difference, or they can pay for the original equipment manufacturer parts option on their policy, providing their company offers this option.
The only caveat with this coverage, is how long an automaker continues to manufacture these parts. Some will stop making them after a couple of years or when the next body style is introduced. In these cases, availability dictates what may be used even if you have this option.
Accident Forgiveness: This option is being offered usually in one of two ways; either as an inducement to stay with a company longer or for allowing the insurance carrier to monitor your driving. When offered as a longevity inducement, there may or may not be an additional charge to obtain the option. The length of time you must be with them for an accident to be forgiven, not counted against you at the next renewal, varies from immediate (for those with no claim activity for say five years), or some range of time you’re with them such as three to six years.
In the second case, I have seen a carrier offer to remove or forgive an accident from consideration if they agree to the company monitoring their driving for a period of three to six months. In these cases, the company looks at driving speed, starts and stops, and time of day the driver drives their vehicle. The findings determine whether or not the accident remains forgiven. In this instance, there is not an additional charge to take advantage of the option, only savings on what you pay.
Vanishing Deductible: A variety of car insurance companies offer a vanishing deductible option, where the amount of the deductible reduces a set amount per year until there’s a $0 deductible for an accident. This deductible may be included in a “nicer” package that cost $100 or so more a year than if you don’t have this option, and typically comes with a waiting period of three to four, five, or six years of accident free driving. While it sounds attractive, if most people saved the difference between the basic package and the nicer package with vanishing deductible, they would come out the same or better financially!
Which options you select are dependent on which ones are important to you! Share which ones you like, along with your questions, comments, or experiences with me on our Google +, Facebook, or LinkedIn pages. I’d love to hear from you!
