Understanding The Difference Between Comprehensive And Collision Insurance

Most people can agree that car insurance is a must. But you don't want to just select any car insurance without giving it much thought. You want to make sure that you choose a great car insurer and choose a policy that meets your individual needs. There are a variety of car insurance options and different coverage levels. You may be feeling confused about what kind of coverage to buy. One common confusion is the difference between comprehensive and collision insurance coverage. Keep reading to better understand the difference between both:

What is Collision Coverage?

Collision coverage covers damage to your vehicle if you've been involved in a car accident that involves another vehicle or an object. Depending on the incident and coverage, this may take care of repair costs or it may take care of the replacement of your vehicle. 

What kind of incidents are covered? If you're involved in an accident with another car, you have an accident where your car rolls over, or are involved in an accident where your car hits an object—for example a tree—your collision coverage will be used. 

What is Comprehensive Coverage? 

Comprehensive coverage covers damage to your car that is not the result of a vehicle accident. 

What kind of incidents are covered? If you experience vehicle theft, an object falls on your car, an animal causes damage to your vehicle, or a natural disaster causes damage to your vehicle, your comprehensive coverage will be used. 

If you're deciding if you need to carry both comprehensive and collision insurance, you'll want to consider a few things. First, always look at your state minimum coverage requirements to make sure that you meet them. Next, consider the age of your car and your own risk. Finally, think about what would happen if you didn't have coverage. It can be devastating to have to take care of serious car repairs or to have to fully replace a vehicle when you least expect it. It's likely a good idea to carry more coverage than you think you might need to be safe. 

It's important to educate yourself on the differences between different coverage options so that you're choosing the right policy for your needs and so that you will be protected in the way that you plan to be. If you ever have additional questions about coverage options or if you need help choosing a new policy, reach out to an auto insurance company.