Posted on: 18 March 2020
If you are new to car insurance, then you may wonder if you need collision and/or comprehensive insurance. These two types of insurance, though they seem similar, are actually different in what they cover. Whether or not you need them is based on your individual circumstances and preferences. Here are some questions and answers to help you determine whether you need collision and comprehensive.
What Is Collision Insurance?
Think of collision insurance as insurance that covers you if you collide with something. For example, if you hit a parked car or a tree, then collision will cover you for damages to your own car. Basically, any type of collision will be covered by collision insurance, including hit and runs to your car by someone else. It differs from liability insurance because it covers your own vehicle. Liability covers injuries or damage to another person or vehicle in an accident.
What Is Comprehensive Insurance?
Comprehensive insurance covers things that don't involve driving or hitting something. Events like theft, vandalism, animal damage, or storm damage are all covered by collision insurance. It covers damage caused by things that are not under your control that don't involve a collision with another vehicle. An example of this type of insurance in action would be if your vehicle got hit by a felled tree or got damaged from a flooded storm drain.
Who Should Have Collision and Comprehensive Insurance?
If you finance your car, then the finance company will require you to have collision and comprehensive insurance. However, even if you don't owe any money on your car, you may still wish to have these types of insurance on your vehicle. If you have a high-end car, or one with special customization and add-ons, then you may want extra coverage for damage. Usually, luxury and custom cars have a higher repair cost, so adding insurance could save you money.
What Other Insurance Protects Against Damage?
Comprehensive and collision insurance provide nearly full property damage coverage. If all that you are looking for is coverage against uninsured motorists, then you can buy separate insurance for that, instead. However, this insurance will not cover you for theft and vandalism. It also doesn't cover you for hit and run situations. In those cases, comprehensive and collision would be better choices.
Collision and comprehensive cover many types of accidents and damage. However, if you have an older, non-luxury car, then you may want to weight the costs versus the benefits. If you need help deciding if collision and comprehensive is right for you, then contact a car insurance agency for more information.Share