Collision and Comprehensive Covers | Car Insurance

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Collision and Comprehensive Covers | Car Insurance

Two types of car insurance, collision and comprehensive, will protect your car if you get into a car accident. Collision insurance protects you if you get into an accident with an automobile or something else. Comprehensive covers you from any damage that does not involve colliding with a car or something else. It means that you have combined or  full coverage if you have both types of coverage. According to NAIC, full coverage auto insurance costs an average of $86 a month on average. If you get a loan for your car, your lender might make you get collision and comprehensive covers for your car. 

The more you know about collision and comprehensive auto insurance, the better. Some people may have asked, “Will my car be covered if I hit the curb? It depends on what kind of insurance you have, and how much you pay.

Check out the rest of our guide to learn more about two well-known types of car insurance: collision and comprehensive insurance.

What is the difference between Comprehensive and Collision Covers?

Comprehensive and collision insurance are meant to pay for damage to your car. If you get into a collision with another car or something else, the collision will pay for the damage, no matter who was at fault.

On the other hand, Comprehensive covers damage caused by things that happen outside of a car collision.

Do you need to have comprehensive and collision insurance? Well, it depends. To find out why you might need collision or comprehensive covers, read on.

What is Collision Insurance? 

The Collision insurance pays for damage caused by a collision with another car or object. Even if someone else is to blame for the accident, this coverage will help. A lot of people use this when they’re at fault in an accident because if the other person caused it, their insurance company should pay for your damages.

It will also cover damage that comes from hitting a post, tree or curb as well.

Why do you need Collision coverage? 

Collision insurance covers you for almost anything you hit, so it’s important to have it. This could happen if you hit a tree or another car. Nonetheless, this doesn’t mean that you can’t hit an animal that has run into the road. If you have comprehensive auto insurance, that kind of accident is covered.

What is comprehensive insurance?

A lot of people don’t understand the word “comprehensive.” There are a lot of people who think it covers all of the damage that isn’t covered by their collision policy.

Some things that you might think of as part of the car may not be covered, either. One of the things that isn’t covered is an upgrade to a costly stereo system. It also doesn’t cover damages to the tire or vandalism by family or employees.

If you aren’t sure what your policy covers, ask your agent to explain it to you in more depth. If you need to, think about getting a second rider to pay for any special upgrades that you deem important. 

Why do you need comprehensive coverage?

The Comprehensive insurance protects your car from the damages that come from something other than a collision. This would include things like bad weather, vandalism, and fire.

Most insurance policies cover hitting a deer as part of comprehensive insurance, not as part of collision.

Read Also: A Beginner’s Guide to Home Insurance

There are two types of car insurance: comprehensive and collision. What is the difference between the two? Collision coverage only pays for damage caused by accidents with other cars or objects.

Most of the time, collision and comprehensive insurance are combined into a single package by your insurance company, so you pay less for both. There may still be a way to buy one insurance plan and not the other one to save some dollars.

If your car has a lien on your car, do you need to have comprehensive and collision cover? In that case, your lender will probably want you to get both of these policies.

Do you need both? 

Depending on the laws in your state, this may or may not be true. Laws in most states only require that you have liability insurance, which doesn’t cover collision or comprehensive insurance.

It’s likely that a bank or credit union will want you to get full coverage on your car.

If you own your car outright, is it worth getting comprehensive insurance? Well, if you own your car free and clear, you don’t need collision and comprehensive insurance.

However, depending on how much your car is worth and what amount you have to pay for repairs, you may want to think about getting full coverage on your car.

Liability Insurance Vs Comprehensive & Collision Insurance

Rates for comprehensive and collision insurance are set the same way that rates for liability insurance are set, and they are the same for both. The age of the people who are insured, their credit history, and their driving history can all affect how much their insurance costs go up or down.

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