We look at what sets comprehensive and collision coverage apart, so you can make an informed decision when selecting your car insurance policy.
Comprehensive insurance
While the name might make it seem like this type of insurance offers you blanket protection against any damage that arises, this is not the case. Comprehensive insurance covers damages to your vehicle caused by unforeseen events, such as fire, flood or theft. It also covers any third-party liabilities that may arise from an accident, medical expenditure, injury or death.
A benefit of comprehensive auto insurance is that it can be customized to include additional coverage options, such as windshields and emergency assistance for minor breakdowns. In other words, comprehensive insurance protects you against unfortunate events and helps you tailor a plan that meets your specific needs and requirements.
Here are a few scenarios where comprehensive insurance would keep you covered:
- Someone decides to take out their anger on the side of your innocent vehicle and keys your car. Since this would fall under vandalism, comprehensive insurance would cover the damage. This will most likely be the case if your vehicle is intentionally damaged in some other way. Filing a police report will help solidify your claim.
- One of the most commonly reported claims for comprehensive insurance is damage caused by an animal. The most classic example of this is a deer bolting across the road and causing unavoidable contact with your vehicle. According to moneygeek.com, around 1.5 million deer-car accidents happen every year. Of course, comprehensive insurance would cover you in this instance.
Comprehensive insurance covers:
- Vandalism
- Theft
- Fire
- Falling objects
- Natural disasters (such as a hurricane or tornado)
- Damage caused by animals
- A civil disturbance, like a fight or riot, that results in vehicle damage
Collision insurance
Collision insurance is essential to protecting your vehicle in case you are involved in a car accident. This type of coverage protects you from any damages to your vehicle caused by colliding with another object — be it another car, fence, etc. It also covers any injuries you may sustain from the collision and medical expenses incurred.
Collision insurance generally comes with a deductible, but it can provide peace of mind and protect you financially. Ultimately, collision insurance ensures you have the funds necessary to pay for any repairs or medical bills if your vehicle is involved in an accident.
While collision insurance is not required by law, it is often required by lending institutions that provide funds for vehicles. Whether it is required for you or not, collision insurance is a good idea for anyone regularly on the road. A collision insurance policy protects you from paying out-of-pocket for repairs or a replacement vehicle after an accident. Even if the other driver is found at fault in an accident, their policy may not cover the entire cost of damages to your car. In this case, your collision policy would kick in and help pay for what's left.
Which coverage is right for you?
If it is financially plausible to have both collision and comprehensive insurance, you would be completely covered. This would be the safest way to make sure you and your vehicle will be taken care of no matter what the circumstances. Here are a few factors to consider when weighing your insurance options:
- Your vehicle's value. If you are driving a newer car, carrying both insurances would be ideal and may even be required by your lender.
- Your risk of an accident. If you drive more than the average person, particularly on roads with higher traffic volumes, accidents are more likely to occur. This makes you a good candidate for collision insurance.
- Where you park your vehicle. For example, if your vehicle is parked in a location with higher vandalism rates, you should consider adding comprehensive insurance to ensure you are covered from any potential vandalism. Another example would be living somewhere greatly affected by the weather, like in Florida where hurricanes are an annual threat to your vehicle.
There are a lot of different factors to consider when choosing car insurance. Knowing the difference between comprehensive and collision coverage should help you make an informed decision about what is right for you. If you have any questions about your car insurance options, be sure to speak with your agent or insurer so you can get the best possible coverage for your needs.