Posted on: 19 May 2020Share
Do you need a new car insurance policy, or are you preparing to buy your first policy? If so, you should learn about the different types of coverage options you can choose for your plan. By learning the coverage types, you can select the right ones for your needs. As you begin working on this, you might be wondering what the difference is between collision coverage and comprehensive coverage. Asking an agent to explain this is the best way to find out, but here are some details that may help you understand.
While collision coverage and comprehensive coverage are both forms of essential protection, they are not the same. In fact, they are quite different. Collision coverage is something you can add to your policy to protect against damages caused by car accidents. For an accident to fall within the collision coverage guidelines, you would have to be responsible for the collision. If you are at fault, then you are the responsible party.
If you have collision coverage on your plan, your insurance company will pay for your repairs. The reason for the accident does not matter when you have collision coverage. The only thing that matters is that you have the coverage and are the responsible person for the accident.
There are times when you might encounter damages to your car for non-driving related reasons. For example, if a tree branch landed on the roof of your car, you might have a lot of damage to the vehicle. Your collision coverage would not pay for the repairs because the damage did not occur from a collision. In this case, you would need comprehensive coverage to receive compensation.
Comprehensive coverage fills in the gaps, in a sense. When you experience damage to your car from anything other than a collision, comprehensive insurance typically pays the bill. Another example of damage you might encounter is from vandalism. Imagine if someone broke into your car and damaged the window to get in. Your comprehensive coverage will pay for the repairs that you need from this incident.
Which Types Do You Need?
If you have a car loan at this time, you should purchase both coverage types. You should also buy both types if you have a valuable vehicle. If you would like a quote or any advice about your situation, contact an auto insurance agent in your area.