So you are getting ready to buy car insurance, and you are being asked about the differences between comprehensive or collision insurance. You might be thinking that there isn’t much of a difference, but you could be wrong. Comprehensive coverage, also known as full coverage, is exactly what it sounds like. It covers all of your car’s normal repairs and replacements, as well as those required by law. If there is a fault in your car, then comprehensive will pay for it.
Collision, on the other hand, is designed to pay for damage incurred during an accident, even if it isn’t the driver’s fault. This differs from comprehensive insurance because comprehensive only covers damage caused to the vehicle, whereas collision insurance covers damage to the person or persons involved in the accident, as well as damage to their property. This is why comprehensive or collision insurance is important; without it, you may not be able to afford the repairs or replacements on your own. Therefore, if you were to get into an accident, you would need to take out comprehensive insurance.
If you were to get into an accident with another car, and they made no contact with your vehicle, then you would need collision. How can this differ from comprehensive? Well, comprehensive covers damage to your own vehicle and others, but it doesn’t cover the other car, which means that you won’t be covered if they got into an accident, too. The only time comprehensive or collision insurance would come in handy is if you hit another car while driving drunk. You wouldn’t be covered for that damage if you were to use comprehensive, so you need to make sure you have that coverage to protect yourself if you do get into that kind of situation. To learn about the difference between comprehensive vs collision insurance, check out Joywallet’s article.
With comprehensive insurance, you’ll also be protected against things like fire, theft, vandalism, and weather. Some companies even cover credit card and personal loan damage under comprehensive or collision insurance, which is a nice perk that you should take advantage of, especially if your car is expensive or valuable. If your car is totaled out, you’ll get paid for the value of the car, which could be a substantial amount of money, so you’d want to make sure you have the right kind of protection.
When you purchase collision insurance, you will be given a deductible amount for each collision. That deductible amount will be paid by you before the insurance company pays anything. The deductible amount is the amount you pay first, and the insurance company will pay the rest.
The benefits of collision coverage are many. For one thing, you will get all the coverage you need to be protected. This includes damages to your vehicle, medical bills, and other things, depending on the coverage you choose. You will also be covered during a period after the accident, and your car will be covered until it is fully repaired.
Comprehensive collision coverage, however, provides the most extensive kind of protection. It involves not just the repairs of your car, but also the repair of your other cars or vehicles that may be damaged in the crash. This includes any damage caused by weather, as well as damage that may be done to the property of others. Comprehensive coverage will also cover things like theft or vandalism that might occur at the scene of the crash, in addition to any other forms of damage that might occur. Therefore, comprehensive coverage can end up costing you more than collision coverage does, because it includes more things that could potentially cost you money, in case they occur.
The good rule of thumb is that you should base your choice of auto insurance according to the type of coverage you need. If your car is very expensive, then you will probably want to go with comprehensive collision coverage. However, if your car is a simple vehicle, then collision coverage will probably be the better choice.