Comparing Collision and Comprehensive Auto Insurance

Car insurance is indispensable for every car owner. However, applying for coverage can get tricky due to jargon and endless options. For someone who’s new to insurance, knowing what’s best is a challenge, much more so if budget is an issue. Since your insurance will likely cover the expenses incurred due to damage from an accident, it’s imperative that you know everything that you sign up for.

There are two common car insurance types: collision and comprehensive. Both can be an option but remember that they aren’t equal.

What they have in common

Currently, no states require car owners to have either comprehensive or collision insurance. Since this is optional, you have the freedom to choose whatever suits your situation.

Another thing is that both of these insurance policies only cover the vehicle and not the driver in case a claim will be filed. There would be differences in coverage when it comes to rental cars.

But one thing is for sure, whatever you choose between these two insurance types, you’d have to pay a deductible out of your own pocket. With that, the actual cash value of your claim will be the cost of repairs minus the deductible you chose or the insurance company had set.

Collision insurance

With this type of coverage, damage related to crashes and collisions will be covered even if you are at fault. Here are some of the covered instances of this policy:

-Accidents caused by environmental factors

-Collision with a parked car

-Rollovers and hit-and-run collisions

-Damages incurred by another car while parked

-A collision involving an uninsured car

-Accidents when you or the other driver are at fault.

-Backing or running into an object

-Accidents caused by road factors

These are just some of the common grounds that fall within the collision insurance. Make sure that you read the policy very carefully to be an informed policyholder. This will also make filing your claims easier in the event of an accident.

Comprehensive insurance

This policy includes damage that isn’t related to the collision. Usually, deductibles for this kind of insurance will be lower since the damage is likely to be less expensive. It can range from $100-$2,500 depending on the scale of the damage.

Here are some of the covered situations:

-Glass repair or replacement

-Theft or damage due to breaking-in

-Flooding, storms, and other natural disasters

-Hitting an animal such as a deer, etc.

-Vandalism and windshield replacement/repair

-Fire, hail, and rock damages

Depending on the specific clauses on your policy, more grounds can be covered. When choosing between these two, always consider the risk of collision, your location, and the value of your vehicle. If you’re regularly going in long drives, it’s best to get collision insurance.

If you can’t afford expensive out-of-pocket expenses, you should invest in a more inclusive policy. If you think your car is prone to theft due to the area you live in, focus on this coverage. Remember, you’ll never know when accidents and damage will occur so it’s best to invest early on.

If you want to enjoy the benefits of both policies, you can use the two insurance options together for optimal coverage.