If you have comprehensive auto insurance chances are you also have auto glass replacement coverage. This can be in the form of a separate rider or included in the comprehensive insurance policy and adding this coverage to your auto insurance policy can add anywhere from $100 to several hundred dollars per year. We will have to dig a little deeper to determine if auto glass replacement coverage is worth the cost.
There are several factors we need to take a look at: deductible, replacement cost, and frequency of replacement. The average cost to replace a glass windshield is between $150-$400 depending on your vehicle make so if your deductible is over $500 you will most likely be paying the entire replacement cost.
Let's assume glass coverage costs $100/year and it is costing you $200 to replace a windshield and $50 to repair chips. A typical scenario might involve repairing a single window chip every 2 years and replacing a windshield every 3 years.
Typical Scenario (4 Years)
Cost of Chip Repairs – $50 x 2 = $100
Cost of Windshield Replacement – $200 x 1 = $200
Cost of Glass Coverage – $100 x 4 = $400
Total glass repair cost over 4 years is $300 versus cost of full glass coverage of $400 so you can save $100 by dropping the glass coverage and paying for the work out of pocket. Of course the savings depends on the make and model of your vehicle and the number of repairs you have over the comparison time period. You can save even more on repair cost by bringing your vehicle to the repair shop and avoid the mobile service fee which is typically $25.
Insurance provides protection against unforeseen events and if you are not comfortable with assuming the risk of being responsible for the loss, then it may be worth the added cost of insurance premiums to you.
Great Money Saving Reads
Barb Friedberg has some great suggestions for fun on the cheap – 12 Cheap and Fun Activities for the Holidays
Ray over at Squirrelers discusses how to get the most out of your money – Make My Money Work for Me, Treat it as an Employee!
Josh over at ModestMoney shares a nice review of the 5 Best Online Brokers
Our good friend Maria at The Money Principle shares Three Ways to Minimize Your Waste and Maximize Your Wealth. I was astonished to learn that humans waste 1.3 billion tons of food per year!
Mikey Rox who writes for one of my favorite sites Wisebread shares 10 Habits of Financially Happy People
Len Penzo, another favorite blog of mine writes – The Top 40 Ways to Improve Your Credit Score
Carnivals and Mentions
Festival of Frugality – The Government Shutdown Edition | Debt RoundUp
Carnival of Retirement #88 – Frugal Rules
The Carnival of Financial Independence – Party On Edition! – StackingBenjamins
Lifestyle Carnival — September 15, 2013 edition | Personal Investment Management and Financial Planning
Carnival of Financial Camaraderie- July 20th | PF Carny
Carnival Of Financial Planning B | Finance Junkie
Aspiring Blogger – Personal Finance Carnival #11 – July 26, 2013 | Aspiring Blogger
Finance Carnival for Young Adults | Bite the Bullet Investing
Carnival of Financial Independence 13th edition – Reach Financial Independence
Festival of Frugality #390 – Frugal Rules
Weekly Round-Up: Memorial Day Weekend is Here – The Amateur Financier
The Weekly Personal Finance Digest – Memorial Day Edition
Yakezie Carnival Almost Forgotten Edition – Money Reasons
How to Bring Others on Board with Change – We Only Do This Once
Finance Carnival for Young Adults 5.19.13 — Faithful With A Few
Carnival Of Retirement – 71st Edition
Carnival of Money Pros – May 19th 2013 – Freeat33
Lifestyle Carnival 54th Edition | Lifestyle Carnival
Yakezie Carnival at Money Life and More! — Money Life and More
Carnival of Financial Independence, 10th edition – Reach Financial Independence
Carnival of Financial Planning: Oh Teddy! | Hurricanes, Panties and Dollars