SSRI Affiliate Nonna Sorokina, assistant professor of business at Penn State Scranton, was recently featured in WalletHub's article "Best Comprehensive Car Insurance":
What drivers should purchase Comprehensive Insurance?
Every driver should consider purchasing comprehensive insurance, especially if leaving in an area prone to acts of nature such as tornados, floods, or simply deers frequenting the roads or teens testing their graffiti skills left and right. If one feels that none of the above applies, who is prone to unexpected hail, falling tree brunches, or cracked windshield once in a while? Vehicles also get stolen sometimes.
How should drivers pick their Comprehensive Insurance coverage levels?
Appropriate level of the coverage depends on the vehicle condition and value as well as probability and type of the events that are more likely to trigger such coverage in the areas where the vehicle is driven or stored.
How should drivers pick their Comprehensive Insurance deductible?
The deductible amount directly influences premium costs. Drivers who anticipate filing claims more frequently may benefit from choosing a lower deductible, even though it results in higher monthly premiums. Conversely, those who expect fewer claims can save money by selecting a higher deductible. The potential premium savings should be carefully weighed when deciding on the most appropriate deductible level.
When should drivers drop Comprehensive Insurance?
When a vehicle’s value declines to the point where the comprehensive premium approaches the amount the insurer would likely pay out for a future claim, it may be more practical to discontinue the coverage and accept the financial risk of potential damage or loss.