Comprehensive Auto Insurance Deductibles Increasing Faster Than Collision
Deductibles for comprehensive auto insurance are rising almost twice as fast as collision deductibles in the United States, according to Mitchell International, an auto insurance market research company. As noted by the company, comprehensive auto insurance deductibles are rising at a pace of 160 percent faster.
Deductibles from 2003 to 2009 Studied
The data that Mitchell used for analysis included auto insurance deductibles from 2003 to 2009 for collision and comprehensive losses. In its analysis, the company found that collision deductibles grew during that period by 10 percent while comprehensive grew by 26 percent.
This data means that a growing number of U.S. consumers are choosing higher comprehensive deductibles as their vehicles age, as opposed to collision deductibles. In other words, vehicle owners are more willing to absorb the financial impact of a potential comprehensive claim, but not so much so with a collision claim.
Why More People Are Increasing Comprehensive Deductibles
One reason that people may be increasing their comprehensive insurance may be due to the fact that it seems collisions are more likely to occur on the road than incidents that spark the more-inclusive comprehensive claim, including hail storms or deer head-butting your car.
Also, according to Mitchell, a lot of people chose to increase their deductibles during the recession to lower their monthly premiums. Since comprehensive coverage tends to cost more than collision, many people opted to increase the highest-costing optional coverage.
Lastly, some people seem to increase their deductibles as their cars age, meaning they’d rather pay a lower premium and take the chance that nothing will happen to their cars as they start to care less about the body damage that could occur.
Do you prefer a higher deductible for your comprehensive or collision coverage?