When it comes to purchasing auto insurance, there are many different types of coverage options available. Two of the most common types of coverage are collision and comprehensive insurance. While both types of insurance provide protection for your vehicle, they differ in terms of what is covered and how they work. In this article, we’ll discuss the difference between collision and comprehensive automotive insurance so that you can make an informed decision when selecting the right coverage for your vehicle.
What is Collision Insurance?
Collision insurance is a type of coverage that pays for damage to your vehicle that occurs as a result of a collision with another vehicle or object. This can include accidents with other vehicles, collisions with stationary objects, and rollovers.
Collision insurance typically covers damage to your vehicle, regardless of who is at fault for the accident. If you are at fault for the accident, your collision insurance will cover the cost of repairing or replacing your vehicle, up to the coverage limits of your policy.
If you are not at fault for the accident, your collision insurance will typically cover the cost of repairing or replacing your vehicle, minus your deductible. Your deductible is the amount of money you must pay out of pocket before your insurance coverage kicks in.
What is Comprehensive Insurance?
Comprehensive insurance, sometimes referred to as “other than collision” insurance, provides coverage for damage to your vehicle that occurs as a result of something other than a collision with another vehicle or object. This can include damage caused by theft, vandalism, natural disasters, and other non-collision events.
Comprehensive insurance typically covers damage to your vehicle, regardless of who is at fault for the damage. If your vehicle is stolen, vandalized, or damaged by a natural disaster, your comprehensive insurance will cover the cost of repairing or replacing your vehicle, up to the coverage limits of your policy.
If you are at fault for the damage, your comprehensive insurance will typically not cover the cost of repairing or replacing your vehicle. However, if you have purchased additional coverage, such as collision coverage or uninsured/underinsured motorist coverage, these policies may cover the cost of the damage.
What’s the Difference Between Collision and Comprehensive Insurance?
The main difference between collision and comprehensive insurance is the type of damage that is covered. Collision insurance covers damage to your vehicle that occurs as a result of a collision with another vehicle or object, while comprehensive insurance covers damage to your vehicle that occurs as a result of something other than a collision.
Here are some other key differences between collision and comprehensive insurance:
Coverage limits: Both collision and comprehensive insurance have coverage limits, which are the maximum amount that your insurance company will pay out for a claim. It’s important to choose coverage limits that are high enough to cover the cost of repairing or replacing your vehicle if it is damaged in an accident or other event.
Deductibles: Both collision and comprehensive insurance require you to pay a deductible before your coverage kicks in. Typically, the higher your deductible, the lower your monthly premium will be. It’s important to choose a deductible that you can afford to pay out of pocket in the event of an accident or other event.
Cost: Collision insurance is generally more expensive than comprehensive insurance, as collisions are more common than non-collision events such as theft and natural disasters. However, the cost of both types of insurance can vary depending on factors such as your driving record, the type of vehicle you own, and your location.
Required by law: While liability insurance is typically required by law in most states, collision and comprehensive insurance are optional. However, if you have a loan or lease on your vehicle, your lender may require you to carry collision and comprehensive insurance to protect their investment.
Which Type of Insurance is Right for You?
Choosing between collision and comprehensive insurance depends on a variety of factors, including the type of vehicle you own.
