Collision Insurance Vs Comprehensive: What You Need To Know

If you own a car, it is crucial to have insurance coverage to protect yourself financially in case of an accident. There are different types of car insurance coverage available, but the two most common are collision insurance and comprehensive insurance. In this article, we will explain the difference between these two types of car insurance coverage to help you make an informed decision when choosing the right insurance policy for your needs.

Collision Insurance

Collision insurance is a type of auto insurance coverage that pays for damages to your car if you are involved in an accident, regardless of who was at fault. This coverage applies to collisions with other vehicles as well as collisions with objects such as trees or fences.

If you have collision insurance, you will have to pay a deductible before your insurance company pays for the damages. The amount of the deductible varies depending on the policy, but it is usually around $500.

Collision insurance is not required by law, but it is recommended if you have a new or expensive car. If your car is totaled in an accident, collision insurance will pay for the cost of replacing your car or repairing it if it is repairable.

What Does Collision Insurance Cover?

Collision insurance covers the cost of repairing or replacing your car if it is damaged in an accident. This includes:

What Collision Insurance Covers
What Collision Insurance Does Not Cover
Collisions with other vehicles
Damage from natural disasters such as floods or earthquakes
Collisions with objects such as trees or fences
Stolen car parts
Single-car accidents such as hitting a curb or pothole
Non-accident related damages such as vandalism or theft

How much does collision insurance cost?

The cost of collision insurance varies depending on several factors such as:

  • The make and model of your car
  • Your driving history
  • Your age and gender
  • Your location

On average, collision insurance costs around $300 per year, but this can vary widely depending on your individual circumstances.

Comprehensive Insurance

Comprehensive insurance is a type of auto insurance coverage that covers damages to your car that are not caused by an accident. This includes damage from natural disasters, vandalism, theft, and falling objects such as tree branches.

Like collision insurance, comprehensive insurance requires you to pay a deductible before your insurance company pays for the damages. The deductible is usually around $500, but it can be higher or lower depending on the policy.

What Does Comprehensive Insurance Cover?

Comprehensive insurance covers the cost of repairing or replacing your car if it is damaged by something other than an accident. This includes:

What Comprehensive Insurance Covers
What Comprehensive Insurance Does Not Cover
Damages from natural disasters such as floods or earthquakes
Damage from collisions with other vehicles or objects
Damage from falling objects such as tree branches or hail
Non-accident related damages such as vandalism or theft
Stolen or missing car parts
Normal wear and tear or mechanical breakdowns

How much does comprehensive insurance cost?

The cost of comprehensive insurance also varies depending on several factors such as:

  • The make and model of your car
  • Your driving history
  • Your age and gender
  • Your location

On average, comprehensive insurance costs around $150 per year, but like collision insurance, this can vary widely depending on your individual circumstances.

FAQ

1. Do I need both collision and comprehensive insurance?

It depends on your individual circumstances. If you have a new or expensive car, it is recommended to have both types of insurance coverage. However, if your car is older or not worth much, you might consider only having liability coverage to save money on your insurance premiums.

2. What is liability insurance?

Liability insurance is a type of auto insurance coverage that covers damages or injuries to other people or property if you are at fault in an accident. It does not cover damages to your own car. Liability insurance is required by law in most states.

3. Can I change my deductible?

Yes, you can usually adjust your deductible to a higher or lower amount. However, keep in mind that a lower deductible will result in higher insurance premiums, while a higher deductible will result in lower premiums.

4. What factors affect my insurance premiums?

Your insurance premiums are affected by several factors such as:

  • Your age and gender
  • Your driving record
  • The make and model of your car
  • Your location
  • Your credit score (in some states)

5. What should I do if I get into an accident?

If you get into an accident, make sure everyone involved is safe and call the police if necessary. Exchange insurance information with the other driver and take photos of the damages. Contact your insurance company as soon as possible to file a claim.

Conclusion

Choosing the right type of insurance coverage for your car is an important decision that can affect you financially in case of an accident. Collision insurance covers damages from accidents, while comprehensive insurance covers damages from things like theft, vandalism, and natural disasters. Consider your individual circumstances and car value when choosing your insurance coverage, and make sure to shop around for the best rates.