Written by What is Collision and Comprehensive Coverage?
Collision: Collision coverage pays for damage to your vehicle if the vehicle was involved directly in a collision with another vehicle or object (like a lightpole, building, etc). Collision coverage is designed to reimburse you for damage to your vehicle.
Comprehensive: Comprehensive covers damages resulting from things like vandalism, theft and acs of nature. It does not come into play in the event of a collision. Comprehensive may carry its own deductible.
If the vehicle is financed (loan or lease) then you are usually required to carry a minimum amount of coverage including Collision and Comprehensive. Deductibles are usually suggested at $500.
Your deductible and market value (actual cash value in most cases) of the vehicle has a lot to do with how much your payout will be after a car has been damaged. If your vehicle is worth less than you owe, you may want to consider Gap Coverage to cover the remaining balance due.
Comprehensive and collision on your auto insurance policy may also extend coverage to rental vehicle, check with your insurance company to make sure your insurance plan covers a rental car. If not, you may want to consider purchasing extra rental insurance or a damage waiver from the rental agency.
If you’re considering adding or dropping comprehensive or collision coverage from your auto insurance policy please consult with a licensed auto insurance agent before making any changes to your current auto insurance policy.
If your car gets stolen and you don’t have comprehensive insurance your claim will be denied. If you have a vehicle of any real value, you absolutely need to get comprehensive if you park on the street.
do I need collision coverage? What about comprehensive? My car isn’t worth very much but I can’t afford to replace it, should I just get comprehensive and collision and find a cheaper place to buy insurance?
if you have a vehicle of any value you should at least get comprehensive. That way if your car gets stolen or vandalized the insurance company will pay the claim. Otherwise, you’ll have a much harder time replacing or repairing your vehicle and the money will come out of your pocket.
comprehensive pays for damage to the vehicle not related to an accident, pretty simple.