Comparing Collision and Comprehensive Auto Insurance

Collision and comprehensive auto insurance are two different policies that will secure your vehicle. However, not all car owners recognize the difference or the benefits of each. So for this post, we will compare the two coverage policies and what you should know about it.

Collision coverage

A collision insurance coverage covers the damages your car sustained during an accident. Take note that this policy should cover you regardless of who is at fault for the accident.

As much as collision insurance will cover the cost of repairs, it’s a different story if the overall repair cost is higher than the booked cost of your vehicle. In this case, your insurer will declare your car as ‘totaled’. With that, your insurer will only pay for the booked value of your car. Some will give the option to replace your vehicle.

If another driver is at fault for the collision, your insurer will pay for the repairs then go after the driver to recover their losses. In this situation, your insurance premium will not be affected, plus your insurer will handle the communication with the driver’s insurance agency.

Depending on the specifications of your policy, you can also add uninsured motorist coverage. This way, when an uninsured driver hits you, your insurer will answer for the repairs. Also, some collision insurance policies involve parked cars, rollovers, backing into an object, and hit-and-run collisions.

Comprehensive coverage

Comprehensive car insurance covers incidents rather than accidents, as indicated in a collision insurance policy. Take note that comprehensive coverage will vary per policy or what you decided to include in the fine print.

Some of the incidents covered by a comprehensive insurance policy are falling objects, vandalism, flooding, theft, and so on.

You must read the policy before signing or purchasing it. You may want to include other incidents that you think will likely damage your car in the future. However, remember that the more incidents you include, the higher the premiums will be.

Some policies will cover car theft, fire damage, hitting an animal, and break-ins. Again, it all depends on the coverage you wish to get.

 What type of car insurance should you get?

It’s best to get both collision and comprehensive car policies if you can. This way, your vehicle will be protected from just about any incident or accident that may take place. This is truer if you have a brand new or expensive and if you are at risk for such accidents or incidents. Also, if you live in an area with a high crime rate, getting as much protection for your car is necessary.

These two policies can be purchased together or separately, depending on what your insurer offers. Usually, insurers offer discounts if you avail consolidated policies from them.

Also, remember that both collision and comprehensive insurance only applies to the vehicle, not you as the driver. This is an exception to policies that apply to rental cars. Both will require a deductible for every claim that you will file.